You are here

Broker's take: Singapore banks' Q1 to reflect high single-digit loan growth

Friday, April 17, 2015 - 11:01

i7657687.jpg
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.

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.

sentifi.com

Market voices on:

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.

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom