credit costs

DBS and UOB's net profits have surged in 3Q2022 on loan growth and higher NIMs. The out look is optimistic with caveats

Banks could experience higher operational risks, and higher credit costs as war drags on and APAC growth slows

Banks earnings should continue to rise in 2022 on loan growth, fees, and write-backs

DBS Group Holdings is the stock to own if vaccinations curb Covid, and as the economy recovers

Asean banks' credit costs may have peaked and their dividends could normalise this year, making them attractive investments

The local banks have navigated the Covid crisis, controlling credit costs, and NPLs, and are beginning to look for future growth

Management expects credit costs to rise to about 50 to 60 basis points in FY20, the brokerage points out, following a conference call with UOB Malaysia’s (UOBM) CFO Chang Yeong Gung.

 In addition to the stimulus packages, policy interest rates are falling. Singapore’s exchange rate policy and the easing for the SGD NEER leading to a weaker Singapore dollar may limit the decline in local rates.