Singapore banks’ Q2 performance likely to be weighed down

Looking ahead: People pass an OCBC Bank in Singapore. DBS Research has a ‘hold’ rating on the bank on high dividend yields, which would support the share price even as earnings peak. — Reuters

SINGAPORE: Analysts across the board are expecting a weaker quarterly performance from the trio of local banks in their second quarter (2Q) business update, amid a continued rise in costs and provisions.

Earnings for the three banks are expected to peak this year as loan growth tapers off and the market braces itself for yet another potential round of rate hikes by the US Federal Reserve within the year.