SINGAPORE (May 11): Mainly because of higher provisions, the three Singapore banks have posted double-digit y-o-y lower earnings growth for 1Q2020 ended March. However, they have kept costs under control and eke out higher non-interest income amid uncertain market conditions, says DBS analyst Lim Rui Wen.

As such, DBS Group Research remains “neutral” on the banking sector on expected higher credit costs for FY21F, and declining net interest income (NII) on a lower net interest margin (NIM).

“We remain neutral on the sector as we see limited upside ahead, given the lower-for-longer interest rate environment and near-term recessionary outlook,” says Lim.

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