Singapore banks' dividend cap may last beyond FY20: DBS
Lower-for-longer rates are likely to weigh on NIMs and recovery of ROE: DBS Group Research
Add BT as a preferred source
Fiona Lam
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.
TRENDING NOW
Ohmyhome Ltd sells real estate business for token US$1 due to poor business and continued losses
Buyer for England striker Harry Kane’s former mansion must pay £3.4 million after abandoning deal
As luxury retail goes big, can Singapore’s Orchard Road keep up?
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
