SINGAPORE (July 3): Maybank Kim Eng is maintaining its “neutral” recommendation on Singapore banks as valuations appear to be fair in view of tail risks from the Oil & Gas sector and stable net interest margins.
Maybank’s loan growth assumption for Singapore banks is +6% y-o-y for FY17, as banks stand to benefit from the recovery in the domestic economy.
“We see upside risk to our assumption if the momentum is sustained. We think it is feasible for Singapore banks to reach their guidance of mid-single digit loan growth for FY17,” says analyst Ng Li Hiang in a Monday report.
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