Faced with muted earnings, Singapore banks are “biding time” as interest rates remain low by adjusting deposit rates to manage funding costs, says PhillipCapital analyst Tay Wee Kuang. 

“The outlook for the sector continues to brighten together with the Singapore economy. However, we believe the banks will follow through with their credit guidance for FY2021, which implies continued muted earnings,” writes Tay. 

“For sector exposure, we prefer SGX, which has delivered a strong set of 1HFY2021 results with positive contributions from newly-acquired businesses.”

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook