The analyst also expects UOB to achieve a better improvement in q-o-q net interest margin (NIM) over peers in 2QFY2024, beating the previous guidance of 1 bps to 2 bps as the bank continues to actively manage its deposit costs.
Earnings for all three Singapore banks, DBS Group Holdings, Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (SGX:U11
) (UOB) are likely to stand at risk in the event that the US Federal Reserve begins cutting rates in September, says DBS Group Research analyst Lim Rui Wen.
Lim writes in her July 26 report: “DBS Group Research now expects the US Fed to cut rates by 50 basis points (bps) in 2HFY2024, followed by 100 bps in 2025.”
