Singapore Banks

Singapore banks resilient against rising property risk: Fitch

The Republic’s banks are expected to weather the correction in the city-state's home prices as household debts are low relative to assets, Fitch Ratings said in a commentary on Friday (Jan 30). Fitch also said local banks DBS, Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB) have healthy loss-absorption buffers, which will help them weather a significant rise in credit costs. The...

Cooling measures hit home loans

Hit by repeated rounds of cooling measures and loan restrictions, the housing market has emerged as a concern for Singapore’s banks, with loans to the sector and new mortgage applications slowing. Housing and bridging loans expanded 7.9 per cent in March to S$168.9 billion from S$156.6 billion a year earlier, central bank data showed yesterday. However, this compares with a compound annual growth rate...

Local banks face risk exposure to home loans

Home loans have been a major driver of the lending business for the three local banks, but they could also be a drag in the event of a downturn in the property market, according to global debt watcher Fitch Ratings. Fitch Ratings estimates that home mortgages and construction-related loans account for 50 per cent, or half, of the three local banks' total loan books. The latest figures from the Monetary...

Banks also hit by property clampdown

So far the market seems to have taken in its stride the removal of the interest absorption scheme (IAS) for properties. The knee-jerk decline of 43 points by the STI on Monday was followed by a sharp rebound on Wednesday as broader economic recovery factors continue to dominate. But there is an impending overbuilding of residential property in Singapore. According to Leong Wai Ho,director and senior...

S’pore banks may face growing risks in 2008-09

The financial ratings of Singapore's banks are stable, thanks to a buffer built up during the economic boom last year and conservative management of their balance sheets. According to ratings agency Moody's, the overall impact of the tightening global credit markets has been moderate. However, Moody's has also revealed that there are risks ahead that could undermine the stability for banks in Southeast...

DBS, OCBC hit by global turmoil; Q1 net profits fall

Two Singapore banks on Wednesday reported falls in first-quarter net profit as trading activities took a hit from global financial turmoil. DBS Group, Southeast Asia's biggest bank, said its net profit in the first quarter ended March 31 dipped 2.0 percent to S$603 million (US$446 million) compared with the previous year. Singapore's smallest bank, Oversea-Chinese Banking Corp (OCBC), reported a four...

Singapore banks likely to ride out challenges ahead

Global ratings agency, Fitch Ratings, sees a more challenging operating environment for Singapore banks going forward. According to its latest report, Fitch expects the three local banks – DBS, OCBC and UOB – to see a slowdown in investment banking and capital market-related income over the next two years. Loans growth is seen to be moderating while loan-loss provisions are rising. But Fitch said it...

Industry players expect more homeowners to refinance their mortgage loans

Industry watchers expect more home owners to consider refinancing their mortgage loans as interest rates look set to dip further. In fact, mortgage and financial planning firm SingCapital has seen a three-fold jump in enquiries in the last two months. Property agents are also getting a crash course in mortgage planning, including answering questions about refinancing of home loans. This occurs when...

Industry watchers expect SIBOR to dip 0.5 percentage point in 6 months

The Singapore Interbank Offered Rate or SIBOR is expected to dip a further 0.5 percentage point over the next six months. Industry watchers said this will present an opportunity for homeowners and companies to refinance loans on their properties. The US Federal Reserve recently cut its benchmark interest rate to 2.25 per cent in a bid to prop up the American economy. And this has indirectly put a drag...

Faint light at end of sub-prime tunnel?

But banks now have to deal with slowing economy A heart-thumping sub-prime ride for local banks may be nearing a halt after two quarters of hefty provisions for risky investments. But investors looking to banks repeating the double-digit earnings gain of recent years could be disappointed. A slowing economy is likely to put a squeeze on interest margins and earnings growth, suggesting 2008 could turn out...

Compare listings

Compare