The sector is also the only sector in the market to benefit from the rising rates, they point out.
CLSA analysts Neel Sinha and Lin Daxin are remaining “overweight” on the Singapore banking sector as they foresee all three banks to report higher-than-expected net interest margins (NIMs) and earnings or net profit after tax (NPAT).
“Fed fund rates are on a trajectory higher than we initially expected, driving our adjustments to NIM assumptions and NPAT upwards,” the analysts write in their Oct 12 report.
