DBS (SGX:D05
) group NIM was at 2.12%, up 7 basis points (bps) q-o-q, though the commercial book NIM was much higher at 2.69%, up 8bps. “This was broadly in line with our expectations despite the weak Hong Kong Interbank Offered Rate (HIBOR) rate environment, to which the bank has quite a bit of exposure,” say Sinha and Lin.
Singapore’s banks all reported record 1QFY2023 ended March, but the outlook is more moderate, say CLSA analysts Neel Sinha and Lin Daxin.
Net interest margin (NIM), in particular, was a mixed bag in the most recent quarter, add the analysts in a May 11 note. “NIMs look to be flattening out sooner than we expected and management guidance from the briefings seems to indicate the same as the federal funds rate (FFR) rate hike trajectory has changed a bit from the quarter ago and the fixed deposit rates on the funding side are now catching up.”
