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
    1.3457-0.0002-0.02%
    USDSGD=X
    1.4957-0.0003-0.02%
    EURSGD=X
    2.0955-0.0004-0.02%
    GBPSGD=X
    91.3060+0.0616+0.07%
    SGDJPY=X
    5.7610+0.001+0.02%
    SGDHKD=X
    2.8150+0.0005+0.02%
    SGDMYR=X
    9,933.5156+1.8623+0.02%
    SGDIDR=X
    4.6120+0.0009+0.02%
    SGDCNY=X
    1.0116-0.0002-0.02%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,167.80+4.30+0.37%
    GCQ15.CMX
    15.65+0.09+0.60%
    SIU15.CMX
    62.65+1.28+2.08%
    ^XAU
    2.62-0.01-0.53%
    HGU15.CMX
    55.52-1.41-2.48%
    CLQ15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.65-0.06
    ^FVX
    2.39-0.02
    ^TNX
    3.190.00
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.156-0.009-5.45%
    5DN.SI
    0.300.000.00%
    5WA.SI
    0.189+0.001+0.53%
    5MC.SI
    0.865+0.015+1.76%
    N03.SI
    0.4150.0000.00%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.55+0.09+20.88%
    BAJ.SI
    0.515+0.075+17.05%
    AWV.SI
    0.215+0.031+16.85%
    AZR.SI
    0.22+0.03+15.79%
    AZT.SI
    0.54+0.06+12.50%
    AWZ.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.06-0.06-50.00%
    5TW.SI
    0.09-0.03-25.00%
    40R.SI
    0.31-0.09-22.50%
    AVW.SI
    0.10-0.02-15.25%
    5I1.SI
    0.33-0.05-13.16%
    5UL.SI