Brokers' take

Singapore Banks DBS Group Research, Dec 4

SUSTAINABILITY of net interest margin (NIM) expansion, and asset quality will determine Singapore banks' valuations. We are projecting that NIM will be on an uptrend in 2019 and expect credit costs to trend higher year-on-year.

Asset quality stability and higher earnings growth in FY2019-20F should drive Singapore banks' valuations towards 10-year average price-to-book ratio multiples. Loan growth should continue to be supported by drawdowns from property development projects and regional corporate loans in 2019.