Home Capital Right Timing

Bull or bear? Goldman’s take on local banks; iFast continues decline

Goola Warden
Goola Warden5/12/2022 6:40 PM GMT+08  • 3 min read
Bull or bear? Goldman’s take on local banks; iFast continues decline
Despite maintaining buy calls on the three local banks Goldman Sachs sounds a bearish tone. Elsewhere, iFAST continues to fall
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

A Goldman Sachs May 10 report on local banks sounds decidedly bearish. “Our assessment shows Singapore banks’ shares are pricing in an 18% probability of a recession when we compare our base case and recession scenario-implied valuation relative to where the stocks are trading [now] versus their year-to-date peak,” says Goldman.

“In our recession scenario, we stress-tested 2023 earnings by factoring in Fed rates returning to zero, slower loan growth, higher credit cost and pressure on net interest income which gives us an average –44% EPS downside risk versus our base case,” it adds.

Goldman and other foreign research outfits were bullish on DBS Group Holdings. Some of them still are although group CEO Piyush Gupta did not sound as bullish about the outlook on April 29 compared to Feb 14. He remained largely sanguine on the bank’s outlook and its own pipeline of loans. He also reiterated that a rise of 100bps could increase DBS’s net interest income by as much as $2 billion annually.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.