- Singapore loan growth stable at 2.08% YoY. Consumer loans (-0.39% YoY) contracted for the second time in decades, dragged by persistent weakness in housing loans.
- Domestic deposits rose 7.4% YoY, held up by fixed deposit growth of 22.0% YoY, the fastest in twelve years. CASA deposits continues to contract at -1.1% YoY.
- 3M SIBOR stable at 2.002%, while 3M SOR dipped 22 bps to 1.833%.
- Maintain the Singapore Banking Sector at Overweight. While the trade war affects investor sentiments in the near term, we believe the banks’ fundamentals remain intact to withstand risks and deliver growth on a sustained basis.