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What analysts expect from the 3Q results of banks

Goola Warden
Goola Warden • 8 min read
What analysts expect from the 3Q results of banks
Central Business District, the financial mecca of Singapore. Competition for loans is expected to continue to intensify as incremental loans disbursed at tighter margins are still earnings accretive for the banks, say analysts. Photo: Bloomberg
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While investors and analysts are likely to pour over the local banks’ granular metrics such as their ECLs (expected credit losses), NPLs (non-performing loans), net interest income (NII), non-interest income, cost-to-income ratio, CET1 (common equity tier 1) ratio, NIMs (net interest margins) and Pillar 3 reports, the first glance is often on the net profit figure.

Based on analysts’ earnings estimates compiled by Bloomberg, DBS Group Holdings is forecast to announce a net profit of $2.41 billion in 3QFY2023 ended September versus $2.69 billion in 2QFY2023 and $2.236 billion in 3QFY2022.

Oversea-Chinese Banking Corp has the most upbeat forecast of $1.84 billion for 3QFY2023 ended September compared to $1.71 billion in 2QFY2023 and $1.60 billion in 3QFY2022. It is the only bank likely to show q-o-q and y-o-y growth.

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