Singapore banks optimistic on economic recovery, rate hikes

[SINGAPORE] Banks are sounding an optimistic note heading into 2022, with the global economic recovery and interest rates hikes among the bright spots.

Their latest results also show growth in both customer loans and deposits, as well as higher CASA (current account and savings account) ratios, so analysts are forecasting better net interest margins (NIMs) this year.

DBS, the first to kick off the earnings season on Feb 14, reported full-year loan growth of 9 per cent in 2021 - the highest in 7 years - which mitigated some impact of last year's low-interest-rate environment.