Singapore banks face limited NIM growth, rising asset quality risks in Q1: analysts

MARKET observers expect the trio of Singapore banks to post first-quarter results that have been weighed down by limited room for net interest margin (NIM) growth even as asset quality risks continue to rise.

The US Federal Reserve is likely near the peak of its rate hike cycle, giving limited upside for NIM growth ahead. Meanwhile, the banks can expect weaker loan growth and increasing risks to their asset quality as recession risks become more imminent, analysts noted.

The banking trio will announce their earnings for the first quarter of 2023 in the coming weeks. UOB will release its results on Apr 27, followed by DBS on May 2 and OCBC on May 10.