Singapore banks' results to reflect double whammy of low rates, weak growth

Second-quarter profit at DBS, which has state investor Temasek Holdings as its biggest investor, is set to rise nearly 3% to S$1.19 billion ($865.3 million) from a quarter ago but slump about 25% on the year, according to the average estimate of five analysts, Refinitiv data shows

SINGAPORE: Singapore banks are likely to report their average net interest margins fell the most quarter-on-quarter in 18 years as interest rates weakened, while profits on the year are seen taking a hit from the impact of the COVID-19 pandemic and weak asset quality.

Uninspiring results could add to investor disenchantment with the lenders, the biggest in Southeast Asia, after the city-state's central bank capped their dividends last week, sparking a sell-off in their shares.