“With 93% provisioning coverage and strong core-Tier 1, the sector offers good 2020E dividend visibility,” says analyst Thilan Wickramasinghe in a Sept 24 report, noting that the Singapore banks have been actively lowering risk in their business mix.
SINGAPORE (Sept 26): Maybank Kim Eng Research forecasts that the Singapore banks will deliver a dividend yield of 5.2% for FY2020E – among the highest in the region.
This comes despite gross non-performing loans (NPLs) estimated to rise by 30 basis points to 1.71% by FY2021E.
