- Singapore’s loans growth stable at 2.0% YoY. Consumer loans (-0.9% YoY) contracted for the fourth consecutive month, dragged by weakness in housing loans.
- Domestic deposits rose 8.0% YoY, held up by sustained the strength in fixed deposits which surged 23.1% YoY. CASA contracted 0.9% YoY while fixed deposits (FD) surged to new decade-high growth rate of 23.1% YoY.
- 3M SIBOR finally capitulated and fell 12 bps to 1.879%, while 3M SOR dipped 3 bps to 1.724%.
- In August, SDAV and derivatives volumes for SGX was up 3.9% YoY (QTD -1.3%) and around 14.1% YoY (QTD 8.2%) respectively.
- Maintain the Singapore Banking Sector at Overweight. The banks are offering dividend yield of 4% to 5%, well capitalised and enjoying 5-9% earnings growth.