Singapore Banking Monthly - Phillip Securities 2025-07-07: Loan Growth At A 3-Year High

• June’s 3-month SORA was down 14bps m-o-m to 2.17%, the lowest since Sep 2022 and fell by 150bps y-o-y. We expect the 3-month SORA to continue declining as Fed rate cuts are expected.
• Singapore loans growth is at a 3-year high (May 2025: 5.8%), but we expect a slight slowdown due to the trade war. The CASA ratio has continued to rise (May 2025: 19.2%), which will provide a tailwind for the banks from lowered funding costs.
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3-month SORA at its lowest since Sep 2022.

• Singapore's interest rates fell 14bps m-o-m to 2.17% in June, the lowest since Sep 2022. Furthermore, June’s 3-month SORA fell by 150bps y-o-y, the most significant y-o-y decline since Aug 2020.
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• Hong Kong interest rates plunged again in June. The 3-month HIBOR fell by 53bps m-o-m to 1.67%, as confidence in the US$ and its assets eroded. June’s 3-month HIBOR declined by 308bps y-o-y and is 91bps lower than the 2Q25 3-month HIBOR average of 2.58%.
  • We believe the decline in HIBOR was due to a surge in capital inflows. As investors returned to the IPO market, they converted large amounts of US$ into HKD. This boosted the supply of HKD in the banking system, reducing the need for banks to offer high deposit rates to attract funds.

Singapore loan growth at a 3-year high.

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Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

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