Subscribers

Singapore banks to deliver solid Q3 earnings as rate hikes finally take hold: analysts

SINGAPORE'S banking trio are expected to reap substantial gains in the third quarter of 2022, as interest rate hikes finally make themselves felt considerably in the local financing environment.

While funding costs are set to rise, as deposits in current and savings accounts (Casa) are moved into products that command higher rates, higher loan yields should still dominate returns for the local banks, analysts said.

Many analysts have maintained their "buy" calls on the three banks, on higher absolute dividends for FY2022. UOB Kay Hian (UOBKH) raised its target price for DBS from S$39.50 in the previous quarter to S$45.75, and that of OCBC from S$14.75 to S$16.82. CGS-CIMB raised its target price...

KEYWORDS IN THIS ARTICLE

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes