Delayed rate cuts expected to benefit Singapore banks’ otherwise uneventful Q1 earnings
Net interest margins could also gain from more room to cut deposit rates, given that the lenders hold excess liquidity, says one researcher
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SINGAPORE’S local banks are unlikely to surprise in their earnings for the first quarter of 2024. But a potential delay in interest-rate cuts in the US should boost their results for the year, said analysts.
The local banking trio are due to report their Q1 results in early May – beginning with DBS on May 2, followed by UOB on May 8, and then OCBC on May 10.
The overall earnings momentum will likely flatline in Q1 from a combination of peaking net interest income and slower non-interest income recovery, said Thilan Wickramasinghe, head of Singapore research and regional head of financials at Maybank Investment Banking Group.
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