“Our analysis indicates that every 100bp rise in 3M SIBOR results in net interest margin (NIM) expansion of 25bp for DBS, 13bp for OCBC and 16bp for UOB,” writes Koh.
Be on heightened alert for higher interest rates, says UOB Kay Hian Research analyst Jonathan Koh, recommending “overweight” on the Singapore banking sector.
Interest rates would be on an upcycle after quantitative easing (QE) taper is completed by March 2022, he adds.
