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Analysts downgrade Singapore banks after US Fed rate cut

Ratings decline as the emergency rate cut is expected to compress the lenders' net interest margins

In a sector note on Wednesday, CGS-CIMB has downgraded the Singapore bank sector to "neutral" from "overweight" as banks' revenues are expected to take a hit. CGS-CIMB analysts are expecting a net interest margin compression of 10 to 12 basis points in their FY2020 forecast.


ANALYSTS have downgraded their ratings for Singapore banks following the Federal Reserve's emergency rate cut on Tuesday, with the rate cut expected to compress the net interest margins (NIM) reported by the trio.

The Fed had on Tuesday announced a 50 basis point interest...

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