Singapore banks look to wealth segment, interest margins growth after strong Q2 results

SINGAPORE’S local banks retained resilient results for the second quarter of 2023 as they continued to benefit from higher net interest income due to high interest rates.

The market had previously expected net interest margins (NIMs) to be past their peak. But additional rate hikes by the US Federal Reserve, and current expectations that rates will stay higher for longer, renewed the positive outlook on the banks’ NIMs for the rest of 2023.

The three banks all warned of slowing economic growth. But they also named their wealth management segments as bright spots, which they expect can drive growth in the future.