0352 GMT - Singapore banks' return on equity could sustain an uptrend trajectory, thanks to tailwinds from net-interest-margin expansion, says RHB Research's Singapore research team in a report. Cumulative 230-240 bps increases in Singapore's short-term rates in 2H 2022 and more increases seen in 1H 2023, given expectations for another 75 bps rise in the Fed funds rate, should lift NIM further in 2023, the team says. The banks' 2023 earnings could improve 20%, boosted by more NIM expansion and moderate rebound in non-interest income that would cushion expected uptick in credit costs, the team adds. RHB's preferred picks are DBS and OCBC, both with a buy rating and target price of S$41.10 and S$15.00, respectively. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
January 08, 2023 22:52 ET (03:52 GMT)
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