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BROKERS’ TAKE

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

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In July, MAS called on the three local banks to cap their total dividends per share for FY20 at 60 per cent of FY19's so that they can shore up capital amid the uncertain economic climate.

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...

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