Speaking at a media briefing on Dec 19, Lee says the return to “higher for longer” rates in a bid to quell stubborn inflation in the US is a positive for banks. She thinks Singapore's banks will finish 2025 strong with “much better results” on both interest and non-interest income.
Last night’s 25 basis point (bps) US Federal Reserve rate cut was accompanied by officials’ expectations of just two more cuts in 2025, fewer than previously forecast. In September, the Fed had projected four 25bps cuts next year.
Carmen Lee, head of OCBC Investment Research, expects banking analysts to start revising upwards their full-year earnings forecasts for Singapore’s three banks in January after the holiday season. She adds that she may increase her own forecast to “single-digit” y-o-y net profit growth, up from “flat or slightly negative” y-o-y changes currently.
