Broker's take: Singapore banks' Q1 to reflect high single-digit loan growth
SINGAPORE banks should post a "reasonable quarter" for results in the first three months of the year, reflecting high single-digit loan growth, Nomura said in a report this week.
"We look for core net interest income to show high single-digit loan growth year-on-year and relatively stable net interest margins," it said in a client note on Thursday.
It also said trading- and capital market-related income could pose some surprise, given the volatility in some asset classes.
Nomura, which has "buy" ratings for the three Singapore banks, is slightly more optimistic about the results of DBS and OCBC than the market, given its "relatively sanguine estimate" for DBS's trading income. "For OCBC, we believe the market may assume more provisioning for its recently acquired Wing Hang Bank," it said.
But it noted that it would be too early for the higher short-term interest rates to show an impact on earnings. There have been clear gains in benchmark rates - the Singapore interbank offered rate and the swap offer rate - in the first quarter.
DBS is due to report its first quarter results on April 27, while OCBC and UOB will do so on April 30.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Singapore stocks end lower after US market wobbles ahead of CPI data; STI down 0.2%
LSEG reports in-line first quarter as Microsoft partnership progresses
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover
South Korea readies new system to detect illegal short-selling
Asia: Markets mixed as global rally stalls, eyes on yen
Singapore shares retreat at Thursday’s open; STI down 1.1%