This is due to the “strong headwinds” arising from low interest rates and heightened allowances, despite the “expected recovery in non-interest income” upon the reopening of Singapore’s economy, he says.
PhillipCapital analyst Tay Wee Kuang has maintained his “neutral” recommendation on the Singapore banking sector as he does not foresee the banks’ earnings to reach pre-Covid-19 levels in the near term.
See also: Analysts remain 'neutral' on Singapore banking sector following extension of loan relief measures
