As the US Federal Reserve (US Fed) is expected to raise the Fed Funds Rate by 50 basis points (bps) at the next Federal Open Market Committee (FOMC) meeting on May 3 to 4, the analyst expects the banks’ NIM expansion to be more pronounced starting 3QFY2022.
UOB Kay Hian Group Research analyst Jonathan Koh is remaining positive on the Singapore banking sector ahead of the banks’ results release for the 1QFY2022 ended March on April 29.
On April 19, Koh kept his “overweight” call on the sector even though he expects to see a reversal in net interest margin (NIM) expansions and weak wealth management fees albeit with stable asset quality during the quarter.
