The analysts consider capital returns to be a “key positive thesis” in the near term, although they believe that the banks may want to tie that to longer-term growth as opposed to a one-off surprise.
Jefferies equity analysts Sam Wong and Shujin Chen have expressed their preference for Singapore banks over their Hong Kong peers.
“We are more excited about Singapore banks' longer-term return on equity (ROE) [and] growth potential from overseas franchise uplift, than on near-term capital return,” say Wong and Chen in their Jan 27 report.
