Improved margins should cushion banks’ Q2 earnings from market volatility: analysts

THE big 3 Singapore banks are expected to post stronger net interest margins (NIMs) for the second quarter of 2022, following a series of interest rate hikes by the Federal Reserve to combat inflation.

The strong NIMs will likely help cushion the banks from any drag on earnings brought on by market volatility and macroeconomic downside risks in Q2, analysts said, although recessionary fears may persist in the near term.

The trio of local banks will report their Q2 results in the coming week, with UOB : U11 0% on Jul 29, OCBC : O39 0% on Aug 3 and DBS : D05 0% on Aug 4.