Fitch Ratings analysts Tania Gold and Willie Tanoto think the banks’ ratings have sufficient headroom within their earnings and profitability assessment to absorb these negative impacts.
Signs of softening were evident in the latest results of Singapore’s three listed banks, with margins declining for the second consecutive quarter and loan growth remaining subdued.
Still, Fitch Ratings expects Singapore’s three listed banks to continue to face modest earnings pressure from margin compression, albeit coming off a strong performance in FY2024 ended Dec 31, 2024.
