Here’s why Morgan Stanley is cautious on Singapore banks

SINGAPORE (Aug 10): Singapore’s banks are in for a rough time, says Morgan Stanley.

“We have a cautious view on Singapore banks due to concerns over top-line growth, risks to credit quality and regulatory uncertainty over capital, which will limit payouts,” says equity analyst Nick Lord in a Tuesday report.

Lord says Morgan Stanley’s valuation metrics for all three banks are now close to historical lows – which were last seen during the Asia financial crisis and in 2003. Yet, this is justified in the research house’s view.

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