WHAT does Apple Inc's funds repatriation to the US have to do with the earnings of Singapore's banks? Some believe that when that comes to pass, the impact on exchange rates and interest rates will flow through to the banks' bottom lines.

Last year, total loans growth for the banks was tepid, up 5.7 per cent. But that has not stopped the stock prices of DBS Group, OCBC Bank and United Overseas Bank from outperforming the market. DBS in particular was up 43 per cent last year as investors bet that its mountain of cheap deposits would translate into higher profit when interest rates move up.

Banks typically make more money when interest rates rise because they reprice loans faster and more aggressively but are slower in adjusting deposit rates.