Moderate profitability of Singapore banks expected in 2012 due to corporate loans and lack of growth opportunities
Although Singapore bank’s bottom line profitability was driven primarily by filling the corporate loan and trade related financing gap left by European banks, DBS’s performance far outstripped its peers in 2011. April 12, 2012 | Doron FooThe performance of Singapore banks in 2011 hinged greatly on the global macroeconomic environment. Although escalation of volatility in global financial markets reversed in Q4 2011, it was still the main factor dragging banks performance in 2011 through the trading and investments departments. By the 2H of 2011, Singapore banks witnessed a substantial growth in the corporate loan sector (especially the USD portfolio) as a result of European banks and other international banks making an exit from trade finance and commodity finance operations. On the other hand, net interest margin decline in the face of low interest rate environment and increase competition. Competition for cheap CASA and USD deposits continue to stiffen in anticipation of future expansion of loans in 2011. Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Asian Banker 500, Databook, Industry Outlook, SingaporeAsian Banker 500,Databook,Industry Outlook,Singapore, Asian Banker 500,Databook,Industry Outlook,Singapore, Keywords:DBS, OCBC, UOB, CASA, Bank Assets, AUM, Great Eastern Holding, NIM DBS, OCBC, UOB, CASA, Bank Assets, AUM, Great Eastern Holding, NIM
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