They add that the local banks – DBS Group Holdings, Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (SGX:U11
) (UOB) – are likely to maintain price discipline to defend their market share despite stiff competition as mortgages offer favourable risk-returns given their low risk-weighted-assets consumption for banks.
Bloomberg Intelligence analysts Rena Kwok and Ken Foong see housing loan growth for Singapore banks to remain “flattish” y-o-y in FY2024. Kwok is a credit analyst while Foong is a property analyst.
“Singapore banks' mortgage growth may be flat or in low-single digits in 2024, with healthy pipelines offset by repayments amid high rates, cooling measures and cautious buyers given macroeconomic risks,” the analysts write in their report dated July 3.
