+ NII increased 1% QoQ, NIM stable. NII increased 1% QoQ led by loan growth of 4%, led by term and trade loans in Singapore and North Asia. NIM was unchanged at 1.57% this quarter, helped by lower cost of deposits. NIM is expected to remain stable in FY21e as the bank targets loan growth to improve NII. Wholesale banking business grew 9% YoY, to a quarterly record backed by improving sentiment. Credit demand was strong from large corporate and institutional clients.
+ Robust growth in fees and commissions. Fee and commission income grew 24% YoY and 22% QoQ. This came from record wealth-management AUM and a pick-up in equity markets. Loan-related fees were also supported by large investment-banking and loan-related deals in Singapore, Hong Kong and U.S.
– No write-backs despite stabilising outlook. The bank recognised S$71mn of SPs in 1Q21 with GP unchanged at 1% of loans. Total allowance for this quarter is S$201mn. Despite the sizeable provisions it made in 2020, the bank has delayed the write-back of these allowances in favour of a stronger balance sheet.