Singapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for

The Smart Investor2023-04-07

Singapore banks have been on a roll.2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.DBS Group (SGX: D05), Singapore’s ...

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Success88
·2023-04-07
Singapore bank 👍
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Cedric77
·2023-04-07
You may want to do a little study b4 u make a choice to invest. Though these 3 is a safe bet. Generally, Spore only hv 3 big local banks. Spore can't afford at all to hv anyone of them to get into difficulties. Herewith a link to Dr. Wealth. Hope it helps you to make a better decision. https://www.drwealth.com/singapore-bank-stocks-to-buy/
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- 雨后就是彩虹:
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  2023-04-09
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- DeoxyRNA:
  thanks
  2023-04-07
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- Michellesoh:
  😀
  2023-04-07
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Chillman
·2023-04-07
Nice
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be outdone, United Overseas Bank Ltd (SGX: U11), or UOB, announced a 12% year on year rise in net profit to a record high of S$4.6 billion.As of this writing, the US Federal Reserve appears to lean towards further interest rate hikes to keep inflation on a sustained downward trajectory.The three banks are poised to report their first quarter (1Q 2023) results early next month.Here are three aspects that investors need to keep a close watch on for each bank.Net interest margin (NIM)Net interest margin, or the NIM, is an important driver of the bank’s total income.NIMs largely determine the level of the net interest income (NII) that banks enjoy.The NIM is derived from the average level at which the bank can loan out its cash versus the interest it needs to pay on its deposits.In the previous quarter, all three banks saw a big surge in NIMs as interest rate increases accelerated.As a recap, OCBC’s NIM hit 2.19% in the second half of 2022 while UOB and DBS chalked up NIMs of 2.08% and 1.97%, respectively.These NIM levels were significantly higher than the average of around 1.5% recorded in the whole of 2021 by all three banks.For 1Q 2023, it’s useful to observe if NIM continues to increase, or if it starts to plateau.DBS has guided for a peak NIM of 2.25% so it may have some way to go, while UOB believes that NIM should “stay around 2.2%”.OCBC, on the other hand, projects that its NIM will hover around 2.1% for 2023.These numbers seem to imply that there is upside for DBS’ NII if it can continue to improve its NIM.UOB’s NII may continue to edge up if its NIM can improve from 2.08% to 2.2%, while OCBC’s NIM looks set to dip after the initial surge.Loan growthOf course, NIM is just one aspect of the equation for computing the NII.The second crucial factor is that growth in each bank’s loan book as NII is predicated on the volume of loans doled out to clients.On this front, all three banks have reported weak loan growth for 2022.UOB saw a 2.9% year on year rise in its loan book while OCBC and DBS only saw a 1.8% and 1.4% year on year increase, respectively.In contrast, 2021 saw a 10.5% year on year rise in UOB’s loan book while DBS and OCBC logged a 10.2% and 8.6% increase, respectively.With such tiny loan growth for 2022, any severe macroeconomic event that rocks the economy may cause businesses to hunker down and stop borrowing.Should this happen, it will choke off the banks’ loan growth and it may turn negative.All three banks have thus far guided for mid-single-digit loan growth for 2023 as the region will benefit from China’s reopening.Provisions and non-performing loans (NPL) ratioA third aspect to look at is each bank’s provision and NPL ratio.With inflation still running high at the start of this year, coupled with elevated interest rates on a year-on-year basis, businesses and individuals may be under more financial stress.Clients who face trouble servicing their interest payments or cannot repay their loan in time will be slotted in as a provision in the bank’s books.This provision acts as a bad debt expense that will directly reduce the lender’s profits.The NPL ratio serves as an indicator of the level of loans that may go unpaid versus the bank’s total loan book.OCBC saw its NPL ratio fall from 1.5 times in 2021 to 1.2 times in 2022.UOB’s NPL ratio, however, stayed flat at 1.6% last year.DBS recorded the lowest NPL ratio of the trio at 1.1%, down from 1.3% in 2021.With tougher economic conditions swirling around, investors need to keep a watchful eye on each bank’s provision and NPL ratio level.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9946988583,"gmtCreate":1680835739742,"gmtModify":1680835744067,"author":{"id":"4101948424484190","authorId":"4101948424484190","name":"Success88","avatar":"https://static.itradeup.com/news/4408e1a22d73e99adb53aa65dde8ad91","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":4,"crmLevelSwitch":0,"idStr":"4101948424484190","authorIdStr":"4101948424484190"},"htmlText":"Singapore bank 👍","listText":"Singapore bank 👍","text":"Singapore bank 👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9946988583","repostId":2325534840,"repostType":4,"repost":{"id":"2325534840","pubTimestamp":1680832840,"share":"https://ttm.financial/m/news/2325534840?lang=&edition=fundamental","pubTime":"2023-04-07 10:00","market":"sg","language":"en","title":"Singapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for","url":"https://stock-news.laohu8.com/highlight/detail?id=2325534840","media":"The Smart Investor","summary":"The local banks are set to report their first-quarter earnings early next month. Here’s what you should look out for.","content":"<html><head></head><body><p>Singapore banks have been on a roll.</p><p>2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.</p><p><strong>DBS Group</strong> (SGX: D05), Singapore’s largest lender, saw its net profit jump 20% year on year to touch S$8.2 billion.</p><p><strong>OCBC Ltd</strong> (SGX: O39) reported a net profit of S$5.7 billion and hiked its final dividend by 43% year on year to S$0.40.</p><p>Not to be outdone, <strong>United Overseas Bank Ltd</strong> (SGX: U11), or UOB, announced a 12% year on year rise in net profit to a record high of S$4.6 billion.</p><p>As of this writing, the US Federal Reserve appears to lean towards further interest rate hikes to keep inflation on a sustained downward trajectory.</p><p>The three banks are poised to report their first quarter (1Q 2023) results early next month.</p><p>Here are three aspects that investors need to keep a close watch on for each bank.</p><h2>Net interest margin (NIM)</h2><p>Net interest margin, or the NIM, is an important driver of the bank’s total income.</p><p>NIMs largely determine the level of the net interest income (NII) that banks enjoy.</p><p>The NIM is derived from the average level at which the bank can loan out its cash versus the interest it needs to pay on its deposits.</p><p>In the previous quarter, all three banks saw a big surge in NIMs as interest rate increases accelerated.</p><p>As a recap, OCBC’s NIM hit 2.19% in the second half of 2022 while UOB and DBS chalked up NIMs of 2.08% and 1.97%, respectively.</p><p>These NIM levels were significantly higher than the average of around 1.5% recorded in the whole of 2021 by all three banks.</p><p>For 1Q 2023, it’s useful to observe if NIM continues to increase, or if it starts to plateau.</p><p>DBS has guided for a peak NIM of 2.25% so it may have some way to go, while UOB believes that NIM should “stay around 2.2%”.</p><p>OCBC, on the other hand, projects that its NIM will hover around 2.1% for 2023.</p><p>These numbers seem to imply that there is upside for DBS’ NII if it can continue to improve its NIM.</p><p>UOB’s NII may continue to edge up if its NIM can improve from 2.08% to 2.2%, while OCBC’s NIM looks set to dip after the initial surge.</p><h2>Loan growth</h2><p>Of course, NIM is just one aspect of the equation for computing the NII.</p><p>The second crucial factor is that growth in each bank’s loan book as NII is predicated on the volume of loans doled out to clients.</p><p>On this front, all three banks have reported weak loan growth for 2022.</p><p>UOB saw a 2.9% year on year rise in its loan book while OCBC and DBS only saw a 1.8% and 1.4% year on year increase, respectively.</p><p>In contrast, 2021 saw a 10.5% year on year rise in UOB’s loan book while DBS and OCBC logged a 10.2% and 8.6% increase, respectively.</p><p>With such tiny loan growth for 2022, any severe macroeconomic event that rocks the economy may cause businesses to hunker down and stop borrowing.</p><p>Should this happen, it will choke off the banks’ loan growth and it may turn negative.</p><p>All three banks have thus far guided for mid-single-digit loan growth for 2023 as the region will benefit from China’s reopening.</p><h2>Provisions and non-performing loans (NPL) ratio</h2><p>A third aspect to look at is each bank’s provision and NPL ratio.</p><p>With inflation still running high at the start of this year, coupled with elevated interest rates on a year-on-year basis, businesses and individuals may be under more financial stress.</p><p>Clients who face trouble servicing their interest payments or cannot repay their loan in time will be slotted in as a provision in the bank’s books.</p><p>This provision acts as a bad debt expense that will directly reduce the lender’s profits.</p><p>The NPL ratio serves as an indicator of the level of loans that may go unpaid versus the bank’s total loan book.</p><p>OCBC saw its NPL ratio fall from 1.5 times in 2021 to 1.2 times in 2022.</p><p>UOB’s NPL ratio, however, stayed flat at 1.6% last year.</p><p>DBS recorded the lowest NPL ratio of the trio at 1.1%, down from 1.3% in 2021.</p><p>With tougher economic conditions swirling around, investors need to keep a watchful eye on each bank’s provision and NPL ratio level.</p></body></html>","source":"thesmartinvestor_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Singapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for</title>\n<style 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}\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSingapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-04-07 10:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/singapore-banks-are-reporting-their-earnings-next-month-3-things-to-watch-out-for/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Singapore banks have been on a roll.2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.DBS Group (SGX: D05), Singapore’s ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/singapore-banks-are-reporting-their-earnings-next-month-3-things-to-watch-out-for/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","LU0577902538.SGD":"Fullerton Lux Funds - Asia Growth and Income Equities A Acc SGD","LU0264606111.USD":"Janus Henderson Horizon Asian Dividend Income A2 USD","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","SG9999013478.USD":"利安新加坡股息基金","LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) SGD-H1","LU0577902454.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) ACC","U11.SI":"大华银行","SG9999001689.USD":"施罗德亚洲成长股票","SG9999005177.SGD":"Legg Mason Martin Currie - Southeast Asia Trust A Acc SGD","LU0516423091.SGD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (SGD) ACC","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","LU0414403682.SGD":"Blackrock Asia Pacific Equity Income A5 SGD-H","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","LU0048573645.USD":"富达东盟基金","LU0128522157.USD":"TEMPLETON ASIAN GROWTH \"A\" ACC","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","SG9999004220.SGD":"Nikko AM Shenton Asia Dividend Equity Fund  SGD","LU0348814723.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"A\" (USD) INC  NC","LU0762540952.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AC\" (USD) ACC","LU0738912210.USD":"Blackrock Asia Pacific Equity Income A6 USD","D05.SI":"星展集团控股","LU0821914370.USD":"贝莱德亚洲成长领袖A2","BK6516":"银行与投资服务概念","LU0516423174.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (USD) ACC","LU0315178854.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY INCOME \"A\" ACC","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","LU0251144936.SGD":"Fidelity Sustainable Asia Equity A-SGD","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU0918141887.USD":"安联亚洲实际收益股票基金","LU0630378429.USD":"HSBC GIF ASIA PACIFIC EX JAPAN EQ HD \"AM2\" (USD) INC","LU0865486749.SGD":"Eastspring Investments - Asian Equity Income AS SGD-H","LU0577902611.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"A\" (USD) ACC","LU1048588211.SGD":"Blackrock Asian Dragon A2 SGD-H","SG9999002406.SGD":"利安新加坡信托基金","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","SG9999002620.SGD":"LionGlobal South East Asia SGD","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","LU0516422440.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"A\" (USD) ACC","LU0516422366.SGD":"Fullerton Lux Funds - Asia Focus Equities A Acc SGD","LU0572940350.SGD":"Janus Henderson Horizon Asian Dividend Income A3 SGD","LU0557290698.USD":"施罗德环球可持续增长基金","LU0577902298.EUR":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (EUR) ACC","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","LU0516422952.EUR":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (EUR) ACC","SG9999000327.SGD":"Schroder Asian Growth A Dis SGD","O39.SI":"华侨银行","SG9999001903.USD":"Aberdeen Standard Pacific Equity USD"},"source_url":"https://thesmartinvestor.com.sg/singapore-banks-are-reporting-their-earnings-next-month-3-things-to-watch-out-for/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2325534840","content_text":"Singapore banks have been on a roll.2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.DBS Group (SGX: D05), Singapore’s largest lender, saw its net profit jump 20% year on year to touch S$8.2 billion.OCBC Ltd (SGX: O39) reported a net profit of S$5.7 billion and hiked its final dividend by 43% year on year to S$0.40.Not to be outdone, United Overseas Bank Ltd (SGX: U11), or UOB, announced a 12% year on year rise in net profit to a record high of S$4.6 billion.As of this writing, the US Federal Reserve appears to lean towards further interest rate hikes to keep inflation on a sustained downward trajectory.The three banks are poised to report their first quarter (1Q 2023) results early next month.Here are three aspects that investors need to keep a close watch on for each bank.Net interest margin (NIM)Net interest margin, or the NIM, is an important driver of the bank’s total income.NIMs largely determine the level of the net interest income (NII) that banks enjoy.The NIM is derived from the average level at which the bank can loan out its cash versus the interest it needs to pay on its deposits.In the previous quarter, all three banks saw a big surge in NIMs as interest rate increases accelerated.As a recap, OCBC’s NIM hit 2.19% in the second half of 2022 while UOB and DBS chalked up NIMs of 2.08% and 1.97%, respectively.These NIM levels were significantly higher than the average of around 1.5% recorded in the whole of 2021 by all three banks.For 1Q 2023, it’s useful to observe if NIM continues to increase, or if it starts to plateau.DBS has guided for a peak NIM of 2.25% so it may have some way to go, while UOB believes that NIM should “stay around 2.2%”.OCBC, on the other hand, projects that its NIM will hover around 2.1% for 2023.These numbers seem to imply that there is upside for DBS’ NII if it can continue to improve its NIM.UOB’s NII may continue to edge up if its NIM can improve from 2.08% to 2.2%, while OCBC’s NIM looks set to dip after the initial surge.Loan growthOf course, NIM is just one aspect of the equation for computing the NII.The second crucial factor is that growth in each bank’s loan book as NII is predicated on the volume of loans doled out to clients.On this front, all three banks have reported weak loan growth for 2022.UOB saw a 2.9% year on year rise in its loan book while OCBC and DBS only saw a 1.8% and 1.4% year on year increase, respectively.In contrast, 2021 saw a 10.5% year on year rise in UOB’s loan book while DBS and OCBC logged a 10.2% and 8.6% increase, respectively.With such tiny loan growth for 2022, any severe macroeconomic event that rocks the economy may cause businesses to hunker down and stop borrowing.Should this happen, it will choke off the banks’ loan growth and it may turn negative.All three banks have thus far guided for mid-single-digit loan growth for 2023 as the region will benefit from China’s reopening.Provisions and non-performing loans (NPL) ratioA third aspect to look at is each bank’s provision and NPL ratio.With inflation still running high at the start of this year, coupled with elevated interest rates on a year-on-year basis, businesses and individuals may be under more financial stress.Clients who face trouble servicing their interest payments or cannot repay their loan in time will be slotted in as a provision in the bank’s books.This provision acts as a bad debt expense that will directly reduce the lender’s profits.The NPL ratio serves as an indicator of the level of loans that may go unpaid versus the bank’s total loan book.OCBC saw its NPL ratio fall from 1.5 times in 2021 to 1.2 times in 2022.UOB’s NPL ratio, however, stayed flat at 1.6% last year.DBS recorded the lowest NPL ratio of the trio at 1.1%, down from 1.3% in 2021.With tougher economic conditions swirling around, investors need to keep a watchful eye on each bank’s provision and NPL ratio level.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9946989129,"gmtCreate":1680835225362,"gmtModify":1680837709846,"author":{"id":"3575196385895354","authorId":"3575196385895354","name":"Cedric77","avatar":"https://static.tigerbbs.com/e5ee082b05004f20d3486afedee30814","vip":1,"crmLevel":4,"crmLevelSwitch":1,"idStr":"3575196385895354","authorIdStr":"3575196385895354"},"htmlText":"You may want to do a little study b4 u make a choice to invest. Though these 3 is a safe bet. Generally, Spore only hv 3 big local banks. Spore can't afford at all to hv anyone of them to get into difficulties. Herewith a link to Dr. Wealth. Hope it helps you to make a better decision. https://www.drwealth.com/singapore-bank-stocks-to-buy/","listText":"You may want to do a little study b4 u make a choice to invest. Though these 3 is a safe bet. Generally, Spore only hv 3 big local banks. Spore can't afford at all to hv anyone of them to get into difficulties. Herewith a link to Dr. Wealth. Hope it helps you to make a better decision. https://www.drwealth.com/singapore-bank-stocks-to-buy/","text":"You may want to do a little study b4 u make a choice to invest. Though these 3 is a safe bet. Generally, Spore only hv 3 big local banks. Spore can't afford at all to hv anyone of them to get into difficulties. Herewith a link to Dr. Wealth. Hope it helps you to make a better decision. https://www.drwealth.com/singapore-bank-stocks-to-buy/","images":[],"top":1,"highlighted":2,"essential":1,"paper":1,"likeSize":37,"commentSize":25,"repostSize":3,"link":"https://ttm.financial/post/9946989129","repostId":2325534840,"repostType":2,"repost":{"id":"2325534840","pubTimestamp":1680832840,"share":"https://ttm.financial/m/news/2325534840?lang=&edition=fundamental","pubTime":"2023-04-07 10:00","market":"sg","language":"en","title":"Singapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for","url":"https://stock-news.laohu8.com/highlight/detail?id=2325534840","media":"The Smart Investor","summary":"The local banks are set to report their first-quarter earnings early next month. Here’s what you should look out for.","content":"<html><head></head><body><p>Singapore banks have been on a roll.</p><p>2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.</p><p><strong>DBS Group</strong> (SGX: D05), Singapore’s largest lender, saw its net profit jump 20% year on year to touch S$8.2 billion.</p><p><strong>OCBC Ltd</strong> (SGX: O39) reported a net profit of S$5.7 billion and hiked its final dividend by 43% year on year to S$0.40.</p><p>Not to be outdone, <strong>United Overseas Bank Ltd</strong> (SGX: U11), or UOB, announced a 12% year on year rise in net profit to a record high of S$4.6 billion.</p><p>As of this writing, the US Federal Reserve appears to lean towards further interest rate hikes to keep inflation on a sustained downward trajectory.</p><p>The three banks are poised to report their first quarter (1Q 2023) results early next month.</p><p>Here are three aspects that investors need to keep a close watch on for each bank.</p><h2>Net interest margin (NIM)</h2><p>Net interest margin, or the NIM, is an important driver of the bank’s total income.</p><p>NIMs largely determine the level of the net interest income (NII) that banks enjoy.</p><p>The NIM is derived from the average level at which the bank can loan out its cash versus the interest it needs to pay on its deposits.</p><p>In the previous quarter, all three banks saw a big surge in NIMs as interest rate increases accelerated.</p><p>As a recap, OCBC’s NIM hit 2.19% in the second half of 2022 while UOB and DBS chalked up NIMs of 2.08% and 1.97%, respectively.</p><p>These NIM levels were significantly higher than the average of around 1.5% recorded in the whole of 2021 by all three banks.</p><p>For 1Q 2023, it’s useful to observe if NIM continues to increase, or if it starts to plateau.</p><p>DBS has guided for a peak NIM of 2.25% so it may have some way to go, while UOB believes that NIM should “stay around 2.2%”.</p><p>OCBC, on the other hand, projects that its NIM will hover around 2.1% for 2023.</p><p>These numbers seem to imply that there is upside for DBS’ NII if it can continue to improve its NIM.</p><p>UOB’s NII may continue to edge up if its NIM can improve from 2.08% to 2.2%, while OCBC’s NIM looks set to dip after the initial surge.</p><h2>Loan growth</h2><p>Of course, NIM is just one aspect of the equation for computing the NII.</p><p>The second crucial factor is that growth in each bank’s loan book as NII is predicated on the volume of loans doled out to clients.</p><p>On this front, all three banks have reported weak loan growth for 2022.</p><p>UOB saw a 2.9% year on year rise in its loan book while OCBC and DBS only saw a 1.8% and 1.4% year on year increase, respectively.</p><p>In contrast, 2021 saw a 10.5% year on year rise in UOB’s loan book while DBS and OCBC logged a 10.2% and 8.6% increase, respectively.</p><p>With such tiny loan growth for 2022, any severe macroeconomic event that rocks the economy may cause businesses to hunker down and stop borrowing.</p><p>Should this happen, it will choke off the banks’ loan growth and it may turn negative.</p><p>All three banks have thus far guided for mid-single-digit loan growth for 2023 as the region will benefit from China’s reopening.</p><h2>Provisions and non-performing loans (NPL) ratio</h2><p>A third aspect to look at is each bank’s provision and NPL ratio.</p><p>With inflation still running high at the start of this year, coupled with elevated interest rates on a year-on-year basis, businesses and individuals may be under more financial stress.</p><p>Clients who face trouble servicing their interest payments or cannot repay their loan in time will be slotted in as a provision in the bank’s books.</p><p>This provision acts as a bad debt expense that will directly reduce the lender’s profits.</p><p>The NPL ratio serves as an indicator of the level of loans that may go unpaid versus the bank’s total loan book.</p><p>OCBC saw its NPL ratio fall from 1.5 times in 2021 to 1.2 times in 2022.</p><p>UOB’s NPL ratio, however, stayed flat at 1.6% last year.</p><p>DBS recorded the lowest NPL ratio of the trio at 1.1%, down from 1.3% in 2021.</p><p>With tougher economic conditions swirling around, investors need to keep a watchful eye on each bank’s provision and NPL ratio level.</p></body></html>","source":"thesmartinvestor_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Singapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for</title>\n<style 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}\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSingapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-04-07 10:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/singapore-banks-are-reporting-their-earnings-next-month-3-things-to-watch-out-for/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Singapore banks have been on a roll.2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.DBS Group (SGX: D05), Singapore’s ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/singapore-banks-are-reporting-their-earnings-next-month-3-things-to-watch-out-for/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","LU0577902538.SGD":"Fullerton Lux Funds - Asia Growth and Income Equities A Acc SGD","LU0264606111.USD":"Janus Henderson Horizon Asian Dividend Income A2 USD","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","SG9999013478.USD":"利安新加坡股息基金","LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) SGD-H1","LU0577902454.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) ACC","U11.SI":"大华银行","SG9999001689.USD":"施罗德亚洲成长股票","SG9999005177.SGD":"Legg Mason Martin Currie - Southeast Asia Trust A Acc SGD","LU0516423091.SGD":"FULLERTON LUX FUNDS - ASIA FOCUS 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ACC","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","LU0251144936.SGD":"Fidelity Sustainable Asia Equity A-SGD","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU0918141887.USD":"安联亚洲实际收益股票基金","LU0630378429.USD":"HSBC GIF ASIA PACIFIC EX JAPAN EQ HD \"AM2\" (USD) INC","LU0865486749.SGD":"Eastspring Investments - Asian Equity Income AS SGD-H","LU0577902611.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"A\" (USD) ACC","LU1048588211.SGD":"Blackrock Asian Dragon A2 SGD-H","SG9999002406.SGD":"利安新加坡信托基金","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","SG9999002620.SGD":"LionGlobal South East Asia SGD","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","LU0516422440.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"A\" (USD) ACC","LU0516422366.SGD":"Fullerton Lux Funds - Asia Focus Equities A Acc SGD","LU0572940350.SGD":"Janus Henderson Horizon Asian Dividend Income A3 SGD","LU0557290698.USD":"施罗德环球可持续增长基金","LU0577902298.EUR":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (EUR) ACC","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","LU0516422952.EUR":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (EUR) ACC","SG9999000327.SGD":"Schroder Asian Growth A Dis SGD","O39.SI":"华侨银行","SG9999001903.USD":"Aberdeen Standard Pacific Equity USD"},"source_url":"https://thesmartinvestor.com.sg/singapore-banks-are-reporting-their-earnings-next-month-3-things-to-watch-out-for/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2325534840","content_text":"Singapore banks have been on a roll.2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.DBS Group (SGX: D05), Singapore’s largest lender, saw its net profit jump 20% year on year to touch S$8.2 billion.OCBC Ltd (SGX: O39) reported a net profit of S$5.7 billion and hiked its final dividend by 43% year on year to S$0.40.Not to be outdone, United Overseas Bank Ltd (SGX: U11), or UOB, announced a 12% year on year rise in net profit to a record high of S$4.6 billion.As of this writing, the US Federal Reserve appears to lean towards further interest rate hikes to keep inflation on a sustained downward trajectory.The three banks are poised to report their first quarter (1Q 2023) results early next month.Here are three aspects that investors need to keep a close watch on for each bank.Net interest margin (NIM)Net interest margin, or the NIM, is an important driver of the bank’s total income.NIMs largely determine the level of the net interest income (NII) that banks enjoy.The NIM is derived from the average level at which the bank can loan out its cash versus the interest it needs to pay on its deposits.In the previous quarter, all three banks saw a big surge in NIMs as interest rate increases accelerated.As a recap, OCBC’s NIM hit 2.19% in the second half of 2022 while UOB and DBS chalked up NIMs of 2.08% and 1.97%, respectively.These NIM levels were significantly higher than the average of around 1.5% recorded in the whole of 2021 by all three banks.For 1Q 2023, it’s useful to observe if NIM continues to increase, or if it starts to plateau.DBS has guided for a peak NIM of 2.25% so it may have some way to go, while UOB believes that NIM should “stay around 2.2%”.OCBC, on the other hand, projects that its NIM will hover around 2.1% for 2023.These numbers seem to imply that there is upside for DBS’ NII if it can continue to improve its NIM.UOB’s NII may continue to edge up if its NIM can improve from 2.08% to 2.2%, while OCBC’s NIM looks set to dip after the initial surge.Loan growthOf course, NIM is just one aspect of the equation for computing the NII.The second crucial factor is that growth in each bank’s loan book as NII is predicated on the volume of loans doled out to clients.On this front, all three banks have reported weak loan growth for 2022.UOB saw a 2.9% year on year rise in its loan book while OCBC and DBS only saw a 1.8% and 1.4% year on year increase, respectively.In contrast, 2021 saw a 10.5% year on year rise in UOB’s loan book while DBS and OCBC logged a 10.2% and 8.6% increase, respectively.With such tiny loan growth for 2022, any severe macroeconomic event that rocks the economy may cause businesses to hunker down and stop borrowing.Should this happen, it will choke off the banks’ loan growth and it may turn negative.All three banks have thus far guided for mid-single-digit loan growth for 2023 as the region will benefit from China’s reopening.Provisions and non-performing loans (NPL) ratioA third aspect to look at is each bank’s provision and NPL ratio.With inflation still running high at the start of this year, coupled with elevated interest rates on a year-on-year basis, businesses and individuals may be under more financial stress.Clients who face trouble servicing their interest payments or cannot repay their loan in time will be slotted in as a provision in the bank’s books.This provision acts as a bad debt expense that will directly reduce the lender’s profits.The NPL ratio serves as an indicator of the level of loans that may go unpaid versus the bank’s total loan book.OCBC saw its NPL ratio fall from 1.5 times in 2021 to 1.2 times in 2022.UOB’s NPL ratio, however, stayed flat at 1.6% last year.DBS recorded the lowest NPL ratio of the trio at 1.1%, down from 1.3% in 2021.With tougher economic conditions swirling around, investors need to keep a watchful eye on each bank’s provision and NPL ratio level.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106253234,"gmtCreate":1681004360338,"gmtModify":1681004367073,"authorId":4087263755014960,"author":{"id":4087263755014960,"idStr":"4087263755014960","authorId":4087263755014960,"name":"雨后就是彩虹","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946989129,"type":1,"supId":0,"prevId":0,"content":"1","text":"1","html":"1"},{"id":106237399,"gmtCreate":1680838283694,"gmtModify":1680841489284,"authorId":4143854841837402,"author":{"id":4143854841837402,"idStr":"4143854841837402","authorId":4143854841837402,"name":"DeoxyRNA","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946989129,"type":1,"supId":0,"prevId":0,"content":"<u>thanks</u>","text":"<u>thanks</u>","html":"<u>thanks</u>"},{"id":106237548,"gmtCreate":1680838600582,"gmtModify":1680838604106,"authorId":3573727615192496,"author":{"id":3573727615192496,"idStr":"3573727615192496","authorId":3573727615192496,"name":"Michellesoh","avatar":"https://community-static.tradeup.com/news/234410039db133842ef5b1cb202d376e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946989129,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">😀</span>","text":"<span class=\"s1\">😀</span>","html":"<span class=\"s1\">😀</span>"},{"id":106237521,"gmtCreate":1680838542571,"gmtModify":1680838546110,"authorId":3582029733148232,"author":{"id":3582029733148232,"idStr":"3582029733148232","authorId":3582029733148232,"name":"LiverpoolRed","avatar":"https://community-static.tradeup.com/news/a3f6d64be1c39dfd245a3348d690b450","vip":1,"currentWearingBadge":{"badgeId":"774ec6f7ffe24a9989b2ca2e139f4b37-1","templateUuid":"774ec6f7ffe24a9989b2ca2e139f4b37","name":"Argentinian Tiger","description":"Joined related football topic in the Tiger community","bigImgUrl":"https://community-static.tradeup.com/news/c4b9257022d333bf6d664b757ae424bf","smallImgUrl":"https://community-static.tradeup.com/news/c4b9257022d333bf6d664b757ae424bf","redirectLinkEnabled":0,"redirectLink":"https://ttm.financial/TW/9928304122","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":3,"allocatedDate":"2022.12.18","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":4001},"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946989129,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"},{"id":106237459,"gmtCreate":1680838387056,"gmtModify":1680838390652,"authorId":3575015760400962,"author":{"id":3575015760400962,"idStr":"3575015760400962","authorId":3575015760400962,"name":"WilliamWin","avatar":"https://community-static.tradeup.com/news/274ef2b875ae79abc8f22ef89013f98a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9946989129,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">😀</span>","text":"<span class=\"s1\">😀</span>","html":"<span class=\"s1\">😀</span>"}],"langContent":"EN"},{"id":9946914507,"gmtCreate":1680834806809,"gmtModify":1680834810191,"author":{"id":"3558275010133966","authorId":"3558275010133966","name":"Chillman","avatar":"https://static.tigerbbs.com/26d692768260a0369516e9c9a49897ec","vip":1,"crmLevel":4,"crmLevelSwitch":1,"idStr":"3558275010133966","authorIdStr":"3558275010133966"},"htmlText":"Nice","listText":"Nice","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9946914507","repostId":2325534840,"repostType":2,"repost":{"id":"2325534840","pubTimestamp":1680832840,"share":"https://ttm.financial/m/news/2325534840?lang=&edition=fundamental","pubTime":"2023-04-07 10:00","market":"sg","language":"en","title":"Singapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for","url":"https://stock-news.laohu8.com/highlight/detail?id=2325534840","media":"The Smart Investor","summary":"The local banks are set to report their first-quarter earnings early next month. Here’s what you should look out for.","content":"<html><head></head><body><p>Singapore banks have been on a roll.</p><p>2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.</p><p><strong>DBS Group</strong> (SGX: D05), Singapore’s largest lender, saw its net profit jump 20% year on year to touch S$8.2 billion.</p><p><strong>OCBC Ltd</strong> (SGX: O39) reported a net profit of S$5.7 billion and hiked its final dividend by 43% year on year to S$0.40.</p><p>Not to be outdone, <strong>United Overseas Bank Ltd</strong> (SGX: U11), or UOB, announced a 12% year on year rise in net profit to a record high of S$4.6 billion.</p><p>As of this writing, the US Federal Reserve appears to lean towards further interest rate hikes to keep inflation on a sustained downward trajectory.</p><p>The three banks are poised to report their first quarter (1Q 2023) results early next month.</p><p>Here are three aspects that investors need to keep a close watch on for each bank.</p><h2>Net interest margin (NIM)</h2><p>Net interest margin, or the NIM, is an important driver of the bank’s total income.</p><p>NIMs largely determine the level of the net interest income (NII) that banks enjoy.</p><p>The NIM is derived from the average level at which the bank can loan out its cash versus the interest it needs to pay on its deposits.</p><p>In the previous quarter, all three banks saw a big surge in NIMs as interest rate increases accelerated.</p><p>As a recap, OCBC’s NIM hit 2.19% in the second half of 2022 while UOB and DBS chalked up NIMs of 2.08% and 1.97%, respectively.</p><p>These NIM levels were significantly higher than the average of around 1.5% recorded in the whole of 2021 by all three banks.</p><p>For 1Q 2023, it’s useful to observe if NIM continues to increase, or if it starts to plateau.</p><p>DBS has guided for a peak NIM of 2.25% so it may have some way to go, while UOB believes that NIM should “stay around 2.2%”.</p><p>OCBC, on the other hand, projects that its NIM will hover around 2.1% for 2023.</p><p>These numbers seem to imply that there is upside for DBS’ NII if it can continue to improve its NIM.</p><p>UOB’s NII may continue to edge up if its NIM can improve from 2.08% to 2.2%, while OCBC’s NIM looks set to dip after the initial surge.</p><h2>Loan growth</h2><p>Of course, NIM is just one aspect of the equation for computing the NII.</p><p>The second crucial factor is that growth in each bank’s loan book as NII is predicated on the volume of loans doled out to clients.</p><p>On this front, all three banks have reported weak loan growth for 2022.</p><p>UOB saw a 2.9% year on year rise in its loan book while OCBC and DBS only saw a 1.8% and 1.4% year on year increase, respectively.</p><p>In contrast, 2021 saw a 10.5% year on year rise in UOB’s loan book while DBS and OCBC logged a 10.2% and 8.6% increase, respectively.</p><p>With such tiny loan growth for 2022, any severe macroeconomic event that rocks the economy may cause businesses to hunker down and stop borrowing.</p><p>Should this happen, it will choke off the banks’ loan growth and it may turn negative.</p><p>All three banks have thus far guided for mid-single-digit loan growth for 2023 as the region will benefit from China’s reopening.</p><h2>Provisions and non-performing loans (NPL) ratio</h2><p>A third aspect to look at is each bank’s provision and NPL ratio.</p><p>With inflation still running high at the start of this year, coupled with elevated interest rates on a year-on-year basis, businesses and individuals may be under more financial stress.</p><p>Clients who face trouble servicing their interest payments or cannot repay their loan in time will be slotted in as a provision in the bank’s books.</p><p>This provision acts as a bad debt expense that will directly reduce the lender’s profits.</p><p>The NPL ratio serves as an indicator of the level of loans that may go unpaid versus the bank’s total loan book.</p><p>OCBC saw its NPL ratio fall from 1.5 times in 2021 to 1.2 times in 2022.</p><p>UOB’s NPL ratio, however, stayed flat at 1.6% last year.</p><p>DBS recorded the lowest NPL ratio of the trio at 1.1%, down from 1.3% in 2021.</p><p>With tougher economic conditions swirling around, investors need to keep a watchful eye on each bank’s provision and NPL ratio level.</p></body></html>","source":"thesmartinvestor_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Singapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for</title>\n<style 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}\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSingapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-04-07 10:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/singapore-banks-are-reporting-their-earnings-next-month-3-things-to-watch-out-for/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Singapore banks have been on a roll.2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.DBS Group (SGX: D05), Singapore’s ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/singapore-banks-are-reporting-their-earnings-next-month-3-things-to-watch-out-for/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","LU0577902538.SGD":"Fullerton Lux Funds - Asia Growth and Income Equities A Acc SGD","LU0264606111.USD":"Janus Henderson Horizon Asian Dividend Income A2 USD","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","SG9999013478.USD":"利安新加坡股息基金","LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) SGD-H1","LU0577902454.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) ACC","U11.SI":"大华银行","SG9999001689.USD":"施罗德亚洲成长股票","SG9999005177.SGD":"Legg Mason Martin Currie - Southeast Asia Trust A Acc SGD","LU0516423091.SGD":"FULLERTON LUX FUNDS - ASIA FOCUS 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EQUITIES \"A\" (USD) ACC","LU0516422366.SGD":"Fullerton Lux Funds - Asia Focus Equities A Acc SGD","LU0572940350.SGD":"Janus Henderson Horizon Asian Dividend Income A3 SGD","LU0557290698.USD":"施罗德环球可持续增长基金","LU0577902298.EUR":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (EUR) ACC","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","LU0516422952.EUR":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (EUR) ACC","SG9999000327.SGD":"Schroder Asian Growth A Dis SGD","O39.SI":"华侨银行","SG9999001903.USD":"Aberdeen Standard Pacific Equity USD"},"source_url":"https://thesmartinvestor.com.sg/singapore-banks-are-reporting-their-earnings-next-month-3-things-to-watch-out-for/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2325534840","content_text":"Singapore banks have been on a roll.2022 saw the trio report record-breaking earnings on the back of surging interest rates that pushed up their net interest income.DBS Group (SGX: D05), Singapore’s largest lender, saw its net profit jump 20% year on year to touch S$8.2 billion.OCBC Ltd (SGX: O39) reported a net profit of S$5.7 billion and hiked its final dividend by 43% year on year to S$0.40.Not to be outdone, United Overseas Bank Ltd (SGX: U11), or UOB, announced a 12% year on year rise in net profit to a record high of S$4.6 billion.As of this writing, the US Federal Reserve appears to lean towards further interest rate hikes to keep inflation on a sustained downward trajectory.The three banks are poised to report their first quarter (1Q 2023) results early next month.Here are three aspects that investors need to keep a close watch on for each bank.Net interest margin (NIM)Net interest margin, or the NIM, is an important driver of the bank’s total income.NIMs largely determine the level of the net interest income (NII) that banks enjoy.The NIM is derived from the average level at which the bank can loan out its cash versus the interest it needs to pay on its deposits.In the previous quarter, all three banks saw a big surge in NIMs as interest rate increases accelerated.As a recap, OCBC’s NIM hit 2.19% in the second half of 2022 while UOB and DBS chalked up NIMs of 2.08% and 1.97%, respectively.These NIM levels were significantly higher than the average of around 1.5% recorded in the whole of 2021 by all three banks.For 1Q 2023, it’s useful to observe if NIM continues to increase, or if it starts to plateau.DBS has guided for a peak NIM of 2.25% so it may have some way to go, while UOB believes that NIM should “stay around 2.2%”.OCBC, on the other hand, projects that its NIM will hover around 2.1% for 2023.These numbers seem to imply that there is upside for DBS’ NII if it can continue to improve its NIM.UOB’s NII may continue to edge up if its NIM can improve from 2.08% to 2.2%, while OCBC’s NIM looks set to dip after the initial surge.Loan growthOf course, NIM is just one aspect of the equation for computing the NII.The second crucial factor is that growth in each bank’s loan book as NII is predicated on the volume of loans doled out to clients.On this front, all three banks have reported weak loan growth for 2022.UOB saw a 2.9% year on year rise in its loan book while OCBC and DBS only saw a 1.8% and 1.4% year on year increase, respectively.In contrast, 2021 saw a 10.5% year on year rise in UOB’s loan book while DBS and OCBC logged a 10.2% and 8.6% increase, respectively.With such tiny loan growth for 2022, any severe macroeconomic event that rocks the economy may cause businesses to hunker down and stop borrowing.Should this happen, it will choke off the banks’ loan growth and it may turn negative.All three banks have thus far guided for mid-single-digit loan growth for 2023 as the region will benefit from China’s reopening.Provisions and non-performing loans (NPL) ratioA third aspect to look at is each bank’s provision and NPL ratio.With inflation still running high at the start of this year, coupled with elevated interest rates on a year-on-year basis, businesses and individuals may be under more financial stress.Clients who face trouble servicing their interest payments or cannot repay their loan in time will be slotted in as a provision in the bank’s books.This provision acts as a bad debt expense that will directly reduce the lender’s profits.The NPL ratio serves as an indicator of the level of loans that may go unpaid versus the bank’s total loan book.OCBC saw its NPL ratio fall from 1.5 times in 2021 to 1.2 times in 2022.UOB’s NPL ratio, however, stayed flat at 1.6% last year.DBS recorded the lowest NPL ratio of the trio at 1.1%, down from 1.3% in 2021.With tougher economic conditions swirling around, investors need to keep a watchful eye on each bank’s provision and NPL ratio level.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":41,"commentSize":3,"repostSize":3,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}