- The Fed is expected to be more cautious when contemplating future rate cuts due to the US economy’s recent strengthening. Maintain OVERWEIGHT on SG banks. BUY DBS, followed by OCBC.
- - Read this at SGinvestors.io -
- OCBC could consider raising its dividend payout ratio to 57%, translating to DPS of 96 cents in 2026.
Economic growth gathering steam.
- Recent economic indicators, such as business sentiment and retail sales, point to a strengthening of the US economy, which could result in limited cuts to interest rates. According to the Federal Reserve Bank of San Francisco, its economic news sentiment index increased from negative territory in Aug 24 to 0.25 in mid-Dec 24.
- - Read this at SGinvestors.io -
- The US economy created 227,000 non-farm jobs in Nov 24, signifying that the patch of weakness in the labour market during Aug 24 could already be over.
Appropriate to slow the pace of rate cuts in 2025.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2025-01-06
More reports on banking & finance sector:
Analyst Reports on Singapore Banking & Finance Sector
Read also:
Analyst Reports on DBS Group
Analyst Reports on OCBC Bank
Analyst Reports on United Overseas Bank (UOB)
