Beware Singapore banks’ ‘value trap’

SINGAPORE (Sept 7): Maybank Kim Eng on Wednesday warned against falling into the “value trap” presented by Singapore banks, which are trading at or below book value.

“ROEs are struggling and we see multiple stress points for returns on capital. These could compress valuations further,” says Maybank analyst Ng Li Hiang. “A structural ROE downshift may be in the works.”

The research house is keeping its keeping its “negative” rating on the sector.

---

Related Stories

• What does the Trump presidency mean for banks?
• DBS buys 620,000 units in CICT at $2.02 apiece
• Citi upgrades DBS to ‘neutral’; keeps UOB’s ‘sell’ call after 3QFY2024 results (update)

---