News dalla rete ITA

19 Marzo 2019

Singapore

SINGAPORE BANKS TO SHINE DESPITE REGIONAL MACROS, COMPETITION FROM FINTECHS: MAY

SINGAPORE (Mar 18): Maybank Kim Eng is keeping “positive” on Singapore’s banking sector while noting significant interest among Malaysian investors in Singapore banks from a flight-to-quality angle, and for their high dividend yields as the SGD appreciates. This comes post a meeting with 15 Malaysian investors from a mix of long-only, hedge and private-banking funds to discuss Singapore banks and Maybank’s stock calls on them – for which the research house says was very little pushback on its top picks DBS and UOB, both rated “buy” with the respective target prices of $29.56 and $29.71. “We also expect loan growth of 6% YoY, underpinned by growth in regional markets where 60% of Singapore bank loans now originate,” adds Wickramasinghe. The analyst also believes domestic banks have an entrenched position to withstand competition from fintechs, given their stronger networks and client depths which he reckons fintechs will find hard to replicate. At the same time, he thinks the overall banking sector will be able to benefit from the faster innovation cycle offered by fintechs, such as through partnerships between DBS and GoJek as well as UOB and Grab. “Given higher IT spending by the sector to streamline systems, it is unlikely that cost-to-income ratios will fall in the medium term. But we expect this trend to reverse when tech-related savings and new revenue begin to flow through in the long term,” he comments.   (ICE SINGAPORE)


Fonte notizia: Digital Edge, 18 March 2019