OCBC

Singapore banks have good dividend visibility, but non-performing loans pose an increasing risk: Maybank

SINGAPORE (Sept 12): Singapore banks seem to be a cut above the rest in Asean, offering some of the highest dividends and ranking among the cheapest in price-to-equity (PE) terms, bolstered by strong balance sheets. 

But a recent report from Maybank Kim Eng which uses artificial intelligence, has revealed that the biggest threat to the appeal of Singapore banks appears to overseas lending – which accounts for 63% of incremental loan growth for Singapore banks. In turn, this affects the banks’ non-performing loan (NPL) figures. 

Underserved remittance service in Singapore gets boost from pilot using blockchain-enabled tokenised currency

(Aug 5): In June, the Monetary Authority Singapore announced that it would be issuing two full digital bank licences and three digital wholesale bank licences to players of non-bank parentage. But there are very few underserved segments in the local financial services. On July 29, in a results briefing, Piyush Gupta, CEO of DBS Group Holdings, said he viewed micro small and medium-sized enterprise (SME) financing and moneylending as underserved parts of the financial network.  

Huxter co-founder dabbles in financial advisory, wealth management programmes to master the trade

SINGAPORE (Aug 5): Huxter co-founder Ray Tan knows how important it is to be a jack-of-all-trades.

The 24-year-old is the director of sales and marketing at the e-commerce start-up. Huxter is riding on the rising trend of vending machines in Singapore – and taking it one step further by including interactive marketing platforms and data analytics.

Noticing that vending machines here are often outdated, poorly maintained and not user-centric, Huxter says it aims to bring Japan's vending culture to Singapore to make it more convenient for vendors and customers.

Underserved remittance service in Singapore gets boost from pilot using blockchain-enabled tokenised currency

(Aug 5): In June, the Monetary Authority Singapore announced that it would be issuing two full digital bank licences and three digital wholesale bank licences to players of non-bank parentage. But there are very few underserved segments in the local financial services. On July 29, in a results briefing, Piyush Gupta, CEO of DBS Group Holdings, said he viewed micro small and medium-sized enterprise (SME) financing and moneylending as underserved parts of the financial network.  

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Singapore's $700 bil stock market looks past recession risk

SINGAPORE (July 19): Investors are sanguine about Singapore’s equity market even as the nation faces the risk of a technical recession, as a positive outlook for dividends and earnings overshadows threats from the US-China trade spat.

Singapore’s trade-reliant economy unexpectedly contracted by 3.4% in the June quarter from previous three months, reflecting sluggish global trade and electronics cycles. Following the data release, the International Monetary Fund on Monday cut Singapore’s 2019 growth forecast to 2% from 2.3%.

UOB is DBS's top pick while OCBC is cut to 'hold' on dividend policy overhang

SINGAPORE (June 25): DBS Group Research is retaining United Overseas Bank (UOB) as its top pick among Singapore banks while Oversea-Chinese Banking Corporation (OCBC) has been downgraded to “hold” with a target price of $11.50.

DBS likes UOB for its high dividend yield of 4.7%, strong capital profile and least exposure to Greater China. However, OCBC’s dividend policy could continue to weigh on its share price performance while inorganic growth opportunities may encounter execution risks.

UOB, OCBC to benefit from mortgage rate hikes this year, says DBS

SINGAPORE (Apr 2): DBS Vickers Securities is remaining bullish on Singapore’s banks as a dividend yield play, while highlighting rising mortgage rates as the sector’s bright spot amid higher cost of funds this year.  

In a Tuesday report, analyst Lim Rui Wen says UOB will benefiting from hikes in mortgage rates in 1Q19, as it was the first to increase it Singdollar fixed deposit rates during February this year.

According to UOB, its mortgages based on fixed deposit rates may grow up to 70 basis points.

Singapore offers buffet of attractive yield plays amid the easing policy environment, says UOB

SINGAPORE (April 1): UOB Kay Hian is recommending a wide variety of yield plays offered by Singapore ranging from aviation and banks, to developers and REITs as central banks around the world continue to ease their monetary policies.   

In a particular, the research house is expecting dovish dispositions at both the Federal Reserve (Fed) and the European Central Bank (ECB) to rekindle general investor interest in yield plays, as an abundance of liquidity make their recurrent dividends more attractive.

This is the year for office REITs to shine: OCBC

SINGAPORE (Jan 8): OCBC Bank is expecting Singapore office REITs to strengthen further in the near-term this year – and possibly, in the process, demand higher rents to bring about positive rental reversion.

In a Tuesday report, OCBC’s credit research team highlights office REITs as a bright spot among Singapore REITs (S-REITs), with the recent trend of strong new office supply looking to reverse in 2019.

Singaporeans love their banks but remains wary of other asset managers, finds survey

SINGAPORE (Sept 20): While a majority of Singaporeans view the city state’s financial services sector as more trustworthy than a decade ago, many are cautious towards less familiar sub-industries and new & emerging digital financial services companies.

This is according to the inaugural 2018 Financial Services Reputation Index, launched today by MHP Communications and ORC International, which surveyed over 4,000 adults across China, Hong Kong, India and Singapore in August this year.

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