Southeast Asia's second-largest lender Oversea-Chinese Banking Corp Ltd (OCBC) joined its Singapore peers in beating market estimates and pumping out record quarterly profits as banks rake it in on higher interest rates. The city-state's banks, which boast some of the strongest capital buffers in the world, have effectively weathered the COVID-19-induced slump and are now benefiting from rebounding Asian economies.
DBS Group reported a forecast-beating 32% jump in quarterly profit to a record high as banks rake in the benefits of higher interest rates, but Southeast Asia's largest lender cautioned on the potential damage to economic activity. Singapore lenders, among the most well capitalised in the world, have effectively weathered the COVID-induced slump, and are now taking advantage of rebounding Asian economies. "My current thinking is that you could wind up seeing a recession in the U.S. if rates hit north of 5% and therefore you will see a sharper slowdown in Asia if that's the case," DBS CEO Piyush Gupta told reporters on Thursday.
Citigroup said on Tuesday it had completed the sale of its Malaysia and Thailand retail banking businesses to Singapore's United Overseas Bank (UOB) in a transaction expected to result in a regulatory capital benefit of $1 billion. UOB said in a separate statement that it expects to complete the acquisition of Citigroup's consumer banking businesses in Indonesia and Vietnam next year.