DBS Group reported a NIM of 1.75% in 2022, up from 1.45% in 2021. Margins at the banks rose year over year for full year 2022. While rising policy rates boosted banks' NIMs, they have also pushed their cost of borrowing higher. Singapore was one of the first Asian countries to embark on a tightening cycle as early as October 2021. Provisioning costs could have upside risks going forward, especially as the full impact of higher interest rates and slower global growth starts to bite.' However, expect the trajectory of growth to decelerate in 2023 as funding costs catch up,' Thilan Wickramasinghe, Maybank Securities Singapore's head of research, told S&P Global Market Intelligence. 'We saw some strong improvements to NIMs. Ltd., or OCBC and United Overseas Bank Ltd., or UOB - in 2023 after rising interest rates boosted their margins in 2022, pushing their full-year net profits to record highs.
This could affect the profits of Singapore's three largest banks by assets - DBS Group Holdings Ltd. Federal Reserve indicated that its tightening cycle may last a bit longer, most analysts believe interest rates may be nearing a peak as global economic growth grinds lower. Singapore's largest banks may see their net interest margins expand at a slower pace in 2023 as central banks approach the limits of monetary policy tightening, bringing the lenders' fee income into focus.Īlthough the U.S.
