Analysts from PhillipCapital and UOB Kay Hian have maintained their “overweight” recommendation on the Singapore banking sector as the sector remained resilient compared to the other sectors that were affected by the Covid-19 pandemic.

Singapore loan growth was relatively flat as it inched up 0.4% y-o-y in April. Business loans contracted for the eighth consecutive month by 1.4% y-o-y. Consumer loans, which grew by 0.3% y-o-y, were up for the ninth straight month, aided by the loan demand recovery for the housing segment.

Local lending rates, however, dipped in May with the three-month SIBOR and three-month SOR falling to 0.44% and 0.23% respectively.

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