bank outlook

FIs role as the middleman is under threat as tech firms mull offering financial services.

Banks’ credit costs are expected to undershoot their guidance.

The economy will return to growth by end of the fiscal year, but asset quality will remain in doldrums.

Policies to slow debt growth and control property prices appear to be working, abating economic risks.

Escalation of the pandemic in Thailand will significantly affect business activity in H2.

According to Singapore’s largest bank DBS, the volume of cash deposits and withdrawals fell by an unprecedented 11% in the first 3 months of 2020, a 6% fall from where the figure had been since 2017. Coupled with extraordinary growth in the adoption of e-payments, it’s safe to say that COVID-19 has altered consumer behaviour—and fast. 

The internet-only bank plans to launch mortgages and merchant loan products.

Non-performing loan ratios will likely peak only by end-2021 or 2022, when relief measures expire.

Even with the suspension lifted, banks will still have difficulties accessing foreign currency funding.

The bank is expected to see moderate credit growth and satisfactory profits.