Fed minutes show more upcoming rate hikes, but pace could slow!
How is it going to affect our local banks??
$DBS GROUP HOLDINGS LTD(D05.SI)$
$OVERSEA-CHINESE BANKING CORP(O39.SI)$
$UNITED OVERSEAS BANK LIMITED(U11.SI)$
If you were to look at their earning reports, these banks derive their earnings from
1. Net interest income (DBS - 64%, UOB - 70.1%, OCBC - 58% of total income)
2. Net fee & commission income (downtrend for all 3 banks)
3. Other non-interest income (downtrend for all 3 banks)
Although the other 2 categories is on a gradual downtrend due to poor macro-environment, the net interest income which forms the bulk earnings of 3 local banks has been increasing!
The net interest income comprises of customer loan, interbank balances and securities. Customer loans include home loans, business loans, car loans, personal loans, education loans etc.
Which country do these banks generate most net profit from?? That's right! Singapore!!
DBS generates 71.8% income from Singapore
UOB generates 63% income from Singapore
OCBC generates 47% income from Singapore
As Singapore generally follows the US interest rates, we can expect to see higher interest rates for the different loans provided by all 3 local banks! Are u bullish on our local banks?? Do let me know your thoughts!
@Daily_Discussion@CaptainTiger@TigerStars@MillionaireTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
What's flip side of massive borrowing & lose yr job, with a loan over yr head. Cut yr clothes according to yr cloth.