Big 3 Local Banks +ve Earnings Report?

As we progressed in this high interest rate environment, it is highly likely that our dear local banks $UNITED OVERSEAS BANK LIMITED(U11.SI)$ $DBS GROUP HOLDINGS LTD(D05.SI)$ $OVERSEA-CHINESE BANKING CORP(O39.SI)$ will continue doing well with higher net interest margins and income.

Uob has just released its earnings a couple of days back. Investors are not disappointed as the company has enjoyed a whopping 27% increase in net profit y-o-y compared to Q2 last year. Uob CEO has also assured investors that its acquisition of Citi's consumer business in the SEA region is spanning out well. With this increase in customer base in SEA, top lines are bound to gain in time to come.

Progressively, OCBC followed by DBS will be releasing their earnings in the weeks to come. I'm pretty confident in the performance of the other 2 banks as well. Hope our dear investors in 3 local banks will pay off!

Here's a look back on the Fed Rate Hikes from 2022-2023.

credits: Forbes.com

Hope that we have all benefitted from the banks share price gains and fat dividend payouts in the recent year. Interest rates won't stay high forever. So enjoy while it lasts!

Invest safe.

@MillionaireTiger @TigerStars @Daily_Discussion @CaptainTiger

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Comments

Raeannpapa
2023-08-02
Raeannpapa
Indeed interest rate will be coming down as the Fed is likely to pause interest rate hike for rest of year and possible reduce rates in 2024. This will affect NIM of local banks going forward. Couple with slow down of local economy, banks may see a drop in their performance in H2.
Ben8228
2023-07-31
Ben8228
on 1 hand we enjoy the good dividends arising from banks fat profits, on the other hand must also be aware of how much interests we are paying to home loans. Banks just keep increasing the rates on existing loans that were despatched to developers years ago before and after property TOP. I feel is not right.

I would say, if we have the cash, payoff the loan 1st. anything spare n can afford to lose then invest. the amount paid just to clear interests is staggering.
cutzi
2023-07-30
cutzi
deposits in BANK should be considered little but stable effective investment as long as inflation is not sheer. just my humble point. never mind
wubbie
2023-07-30
wubbie
yeah, such high rate could not last long time in such globalization world.
Wallstrtbets
2023-07-31
Wallstrtbets
Great ariticle, would you like to share it?
TK360
2023-08-01
TK360
Agreed, nice report