Singapore’s bank lending rose 1.7% in June from May, showing strong growth momentum as loans were driven by manufacturing, general commerce and housing sectors, said Barclays.
“We believe the Singapore banks are well on track to meet their low double-digit loan growth targets, taking advantage of their strong funding base enabling them to win regional loan market share,” said Barclays.
The brokerage said it prefers United Overseas Bank and Oversea-Chinese Banking Corp, which it
has ‘overweight’ ratings on, over DBS Group Holdings, on which it has an ’equal weight’ rating.
By 9:32 a.m., shares of UOB were down 1%, OCBC was 0.9% lower and DBS lost 0.7%. UOB outperformed its two rivals so far this year, rising 29.8%, compared to OCBC’s 20% rise and DBS’s 27% gains. The benchmark Straits Times Index rose 14% in the same period.
Barclays is positive on Singapore’s banks relative to its regional peers due to their strong liquidity position, proven risk management track record and as they are among the best
capitalised in Asia ex-Japan, said Barclays.
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