SG banks to report mixed NIM, strong wealth and trade income for Q1

NIMs for the quarter may be flat to declining quarter-on-quarter.

Singapore’s banks are expected to report mixed net interest margin (NIM) performances but strong wealth fees and trading income for Q1 2025.

NIMs for the quarter are expected to range from largely flat to declining quarter-on-quarter, according to DBS Group Research.

However, they should log strong wealth fees and trading income, as the banks would have benefitted from heightened market volatility and increased client activity in the quarter.

“Whilst asset quality surprises are unlikely, we believe that strong earnings during [Q1 2025] could set the stage for further provision overlays in anticipation of slower economic growth,” DBS Group Research stated.

The banks’ share prices are expected to have peaked, with downside risk to earnings from declines in NIM, loan growth, wealth management, and other fee-based income.

“Where concerns of recession or slowing growth arising from trade war are aplenty, banks’ share prices tend to trade nearer to book and a 10-25% potential downside is plausible,” they added.