Singapore banks set for expansion in net interest margins, higher dividends in 2022
The local banks' portfolios are expected to benefit from the Federal Reserve's earlier-than-expected tightening cycle, say analysts
Singapore
AS higher interest rates loom, Singapore banks are poised to make more money from lending this year, with the current liquidity flush providing a further bump to net interest margins (NIMs) - a key measure of profitability.
Higher dividend payouts are also on the cards due to the sector's strong capital levels and a benign credit cost outlook.
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