Chart of the Day: Check out Singapore banks' mortgage growth trends

Run-rate of 19% foreseen to slowdown.

According to Nomura, there will be adjustments to the banks’ current practices, which is likely to result in lower mortgage volumes going forward. 

The banks’ managements have not specifically mentioned the proportion of mortgages affected by the new framework but are still guiding for a 20-30% decline in approvals this year.

Here's more from Nomura:

Our current loan growth forecasts (average 10% for FY13F) already assume a significant slowdown in lending from the current run-rate of 19%.

Housing loans are currently growing at 15% although on a year-todate basis the growth is just 4% as of end May. DBS remains our top pick – we believe it is well positioned to benefit from strong demand for corporate loans and growth in wealth management income. It trades at an attractive P/BV of 1.1x based on our estimates.