Singapore banks' dividend cap may last beyond FY20: DBS

Singapore

IT is possible that the dividend cap for Singapore banks could be extended into FY21, given the lower net interest income, relatively soft credit demand and uncertainty over asset quality, said DBS Group Research.

This comes as lower-for-longer rates are likely to weigh on net interest margins (NIMs) and recovery of return on equity (ROE), analyst Lim Rui Wen wrote in a report on Thursday night.