The positive expansion was contributed by resident loans which rose 2.7% y-o-y, but partially offset by a 0.7% y-o-y pullback in non-resident loans.
CGS International analysts Andrea Choong and Lim Siew Khee are keeping their “neutral” call on Singapore banks as investors have priced in a positive outlook on net interest margin and wealth management in FY2025.
Banking system loan growth stood at 1.5% y-o-y in October 2024, noticeably stronger than the mostly flattish growth seen over January to September this year. This is likely driven by positive investment sentiment following the US Federal Reserve (Fed) rate cut in September, Choong and Lim say.
