The banks’ diversification into wealth management has underpinned earnings at a time when declining interest rates are likely to put pressure on loan profitability in the second half. The outlook is also clouded by a weakening Singapore economy that’s vulnerable to the fallout from the U.S.-China trade war, which escalated again overnight.
SINGAPORE (Aug 2): Singapore banks delivered second-quarter profit that beat analysts’ estimates, indicating they are well placed to weather mounting pressures from a global economic slowdown and falling interest rates.
Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. posted surprise increases in net income for the three months ended June 30, results showed Friday. Larger rival DBS Group Holdings Ltd. earlier this week saw profit climb more than projected.
