Singapore’s largest banks to rake in profits from rising interest rates

The SIBOR has more than doubled this year.

Singapore’s three major banks are poised to benefit from gains in local interest rates, which could signal bigger profits from their domestic lending, a report by Bloomberg says.

The three-month Singapore interbank offered rate, or SIBOR, has more than doubled this year to just over 1 percent, the highest since December 2008. If rates continue higher, DBS Group Holdings Ltd., United Overseas Bank Ltd. and Oversea-Chinese Banking Corp Ltd. could reverse a squeeze on their net interest margins, the difference between the interest they charge for loans and pay out to depositors.

View the full report here.


 

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