- November’s 3-month SORA was down 14bps m-o-m to 1.26%, the lowest since July 2022, and fell by 203bps y-o-y. Singapore loan growth has continued to climb (Oct25: +6.5%) with year-to-date25 loans up 5.7% y-o-y. Banks are still guiding low to mid-single digit. CASA rose 13% y-o-y but CASA ratio to deposit dipped slightly (Oct25: 19.4%), a tailwind for banks, lowering funding costs.
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- We upgrade OCBC from Neutral to ACCUMULATE and OCBC's target price was raised from S$17.00 to S$20.00 as we raise the terminal growth rate to 3% (from 2%) and lower the beta to 1.1 (previously 1.2) to reflect OCBC’s strong wealth management growth and excess capital.
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3-month SORA lowest since Jul 2022
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