Singapore banks beat earnings estimates in Q3 as rate hikes boost margins

SINGAPORE banks posted robust earnings in the third quarter of 2022, with several record figures, as the lenders continued to benefit from interest rate hikes.

But top executives of the local banking trio warned of a slowdown in Asia, even as rate hikes will likely continue to support net interest margins (NIMs). Analysts, meanwhile, warned that credit costs are set to rise amid recession risks, with downside risks to the banks’ asset quality going forward.

All three local banks beat analysts’ earnings estimates for the quarter ended September.