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Be on 'heightened alert' for higher interest rates: UOB Kay Hian

Jovi Ho
Jovi Ho1/6/2022 2:21 PM GMT+08  • 3 min read
Be on 'heightened alert' for higher interest rates: UOB Kay Hian
Banks here will benefit from net interest margin (NIM) expansion starting 4Q2022, says UOB Kay Hian Research.
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Be on heightened alert for higher interest rates, says UOB Kay Hian Research analyst Jonathan Koh, recommending “overweight” on the Singapore banking sector.

Interest rates would be on an upcycle after quantitative easing (QE) taper is completed by March 2022, he adds.

“Our analysis indicates that every 100bp rise in 3M SIBOR results in net interest margin (NIM) expansion of 25bp for DBS, 13bp for OCBC and 16bp for UOB,” writes Koh.

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