Singapore banks expected to be hit by lower NII, slow loan growth: Phillip Securities

SINGAPORE (July 6): As the local lending rates are likely to stay lower for longer, the net interest income of banks is expected to decline 7% on average in 2Q20, according to Phillip Securities.

The three-month Singapore interbank offer rate (3M-SIBOR) and three-month swap offer rate (3M-SOR) have fallen to their respective seven-year lows, the brokerage notes.

The 3M-SIBOR and 3M-SOR held at 0.56% and 0.20% respectively – similar to levels observed in May, it adds.

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