Chart of the Day: DBS, OCBC, and UOB Q1 loan growth up 5%-10%

Domestic loan growth was higher across all three banks compared to the last quarter.

This chart from Moody's Investors Services shows that loan growth over the 12 months was robust across Singapore's top banks DBS, UOB, and OCBC at 5%-10%.

For the first quarter of 2018, the domestic loan growth of DBS went up to around 7%, for OCBC it went up over 8%, whilst for UOB it grew to 3% compared to last quarter.

The overseas loan growth of DBS grew much faster by 12%, whilst for OCBC it went to 11% and for UOB it dipped to 8% compared to last quarter.

Data from the Monetary Authority of Singapore (MAS) showed that bank lending in Singapore rose 5.4% YoY in March as sustained demand for home and corporate loans kept credit levels stable.

"We expect loan growth in 2018 to be between 7%-8% for the three banks, driven by both domestic and overseas loans. Overseas loan demand will continue to be supported by robust trade loan growth on the back of strong external demand, notwithstanding current US-China trade tension."

"We also expect domestic loan growth to be supported by a healthy operating environment."