Brokers' take

Singapore banks | Negative

Maybank Kim Eng Research, Sept 7

Tailwinds for the sector after the global financial crisis may have petered out. A structural return on equity (ROE) downshift may be in the works. The six smoking guns we see are: sluggish loan volume, pricing pressures, reduced headroom for loan-deposit ratio increases, higher credit costs, trading-book dependency and regulatory capital requirements.