Singapore banks to be net beneficiaries of gradual rate hikes: S&P

SINGAPORE banks will be net beneficiaries of gradual rate hikes, S&P said in a report on Thursday.

"Higher interest rates will provide a revenue boost as variable rate loans are re-priced upwards. Strong household and corporate balance sheets would continue to support debt repayment, such that revenue upside will likely offset the incremental increase in credit costs," it said.

It expects Singapore banks to maintain their sound credit fundamentals in 2015.