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
    1.2562+0.0008+0.06%
    USDSGD=X
    1.7366+0.0019+0.11%
    EURSGD=X
    2.1091+0.0026+0.12%
    GBPSGD=X
    81.4174-0.2565-0.31%
    SGDJPY=X
    6.1722-0.0034-0.05%
    SGDHKD=X
    2.5979-0.0032-0.12%
    SGDMYR=X
    9,258.0801-41.6045-0.45%
    SGDIDR=X
    4.9658-0.0028-0.06%
    SGDCNY=X
    1.1681+0.0021+0.18%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,286.70+2.10+0.16%
    GCM14.CMX
    19.48+0.04+0.19%
    SIK14.CMX
    92.88+1.82+2.00%
    ^XAU
    3.07+0.01+0.20%
    HGK14.CMX
    101.65+0.21+0.21%
    CLM14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.71-0.03
    ^FVX
    2.69-0.04
    ^TNX
    3.47-0.03
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.151+0.009+6.34%
    545.SI
    0.121-0.001-0.82%
    B22.SI
    0.151+0.007+4.86%
    C68.SI
    0.64+0.045+7.56%
    5WH.SI
    1.350.0000.00%
    G13.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    20.00+4.200+26.58%
    K6S.SI
    1.305+0.090+7.41%
    5DA.SI
    0.17+0.012+7.59%
    5PF.SI
    1.095+0.070+6.83%
    S53.SI
    0.15+0.010+7.14%
    5GD.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.053-0.059-52.68%
    5TF.SI
    1.61-0.530-24.77%
    N02.SI
    0.30-0.020-6.25%
    508.SI
    0.123-0.008-6.11%
    S71.SI
    0.235-0.015-6.00%
    L6T.SI