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
    1.3754+0.0063+0.46%
    USDSGD=X
    1.5036+0.0006+0.04%
    EURSGD=X
    2.1458+0.01+0.47%
    GBPSGD=X
    90.2588-0.3113-0.34%
    SGDJPY=X
    5.6375-0.0244-0.43%
    SGDHKD=X
    2.7835-0.0023-0.08%
    SGDMYR=X
    9,826.6533-26.8975-0.27%
    SGDIDR=X
    4.5152-0.0195-0.43%
    SGDCNY=X
    1.0026+0.0045+0.45%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,087.40-5.50-0.50%
    GCV15.CMX
    14.73-0.06-0.38%
    SIZ15.CMX
    46.64-1.73-3.57%
    ^XAU
    2.40-0.02-0.99%
    HGG16.CMX
    48.51-0.28-0.57%
    CLU15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.62+0.01
    ^FVX
    2.27-0.01
    ^TNX
    2.95-0.03
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.52-0.07-11.86%
    N21.SI
    0.320.00-1.54%
    E5H.SI
    0.139+0.003+2.21%
    5DN.SI
    0.310.00-1.59%
    5WA.SI
    0.915+0.035+3.98%
    5ME.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.199+0.049+32.67%
    5MQ.SI
    0.45+0.09+25.00%
    K1Q.SI
    0.65+0.09+16.07%
    L5I.SI
    0.295+0.035+13.46%
    PA3.SI
    0.445+0.050+12.66%
    42C.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.38-0.11-22.45%
    AZT.SI
    0.128-0.018-12.33%
    5TJ.SI
    0.52-0.07-11.86%
    N21.SI
    0.16-0.02-11.11%
    AVX.SI
    0.39-0.05-10.34%
    5I3.SI