Singapore banks on track to post 6-8% earnings growth in FY12

DBS is Nomura's top pick.

According to Nomura, Singapore banks still appear on track to deliver 6-8% FY12F earnings growth on undershooting credit costs and resilient fee income growth.

Here's more from Nomura:

We think that our top pick DBS (Buy, TP: SGD18.3) is attractive due to its broad franchise momentum and overly discounted (c.1x book) valuation to peers; its bid for Bank Danamon faces regulatory uncertainty but organic growth drivers are strong. UOB’s positive combination of NIM/LDR traction, coupled with solid capital and liquidity (especially USD), should reinforce its defensive attraction.

YTD deposit growth at 4.27% in September
System deposits grew 6.46% y-y in September (Aug: 7.66%), with deposits from Singapore residents growing 8.14% y-y (Aug: 8.93%) while deposits from non-residents expanded 3.77%y-y. The yield curve flattened moderately in Aug-Oct, with the 10-year losing 4bps in Oct, while the shorter three-month interbank was stable.



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Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3525+0.0014+0.11%
    USDSGD=X
    1.4760+0.0032+0.22%
    EURSGD=X
    2.0677-0.0065-0.32%
    GBPSGD=X
    91.7954+0.2185+0.24%
    SGDJPY=X
    5.7330-0.0092-0.16%
    SGDHKD=X
    2.7038+0.007+0.26%
    SGDMYR=X
    9,766.3828+14.3262+0.15%
    SGDIDR=X
    4.5800-0.0095-0.21%
    SGDCNY=X
    1.0321-0.0123-1.18%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,187.20+0.70+0.06%
    GCQ15.CMX
    16.64-0.01-0.07%
    SIN15.CMX
    69.01+0.26+0.38%
    ^XAU
    2.760.00-0.14%
    HGN15.CMX
    57.06-0.45-0.78%
    CLN15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.52-0.01
    ^FVX
    2.14+0.01
    ^TNX
    2.89+0.01
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.195+0.020+11.43%
    F13.SI
    0.415-0.010-2.35%
    E5H.SI
    0.335-0.005-1.47%
    AFC.SI
    0.290.000.00%
    5WA.SI
    4.12-0.04-0.96%
    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.18+0.03+20.00%
    P36.SI
    0.155+0.021+15.67%
    5F4.SI
    0.128+0.014+12.28%
    510.SI
    0.195+0.020+11.43%
    F13.SI
    0.33+0.03+8.20%
    T18.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.192-0.108-36.00%
    AYE.SI
    0.15-0.02-11.76%
    5MQ.SI
    0.31-0.04-11.43%
    AYL.SI
    0.098-0.011-10.09%
    O2I.SI
    1.80-0.20-10.00%
    AYC.SI