- Singapore loan growth slowed further to 1.4% YoY. Consumer loans contracted for the first time in decades, hammered by persistent weakness in housing loans.
- Domestic deposits rose 7.1% YoY, held up by fixed deposit growth of 21.6% YoY, the fastest in almost twelve years. CASA deposits continues to contract at -1.1% YoY.
- 3-month SIBOR and SOR rose 6.2bps and 8.0bps to 2.007% and 2.052% respectively.
- 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.