Banks’ earnings will erode as NIMs expected to fall near post-GFC low: DBS

SINGAPORE (July 22): Singapore banks are expected to see a 6% to 8% y-o-y decline in earnings in 2Q20 on the back of lower net interest margins (NIMs), according to DBS Group Research.

This comes after the US Federal Reserve made two interest rate cuts in March in response to the economic impact brought by the novel coronavirus (Covid-19) pandemic, it says.

Already, loans have been repriced on lower benchmark rates during of the quarter, the brokerage notes.

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