, Singapore
643 views
Photo from OCBC website.

Singapore banks’ interest rates will remain elevated until Q3: analyst

DBS and OCBC are expected to provide dividend yield of 7.4% and 6.5%.

Singapore banks’ domestic interest rates are expected to remain elevated for “longer” and will only start to recede in the last three months of 2024, according to UOB Kay Hian.

The US Federal Reserve is expected to push for two rate cuts in the second half of 2024, noted analyst Jonathan Koh anticipates in a commentary. This will be a factor in Singapore’s DBS and OCBC maintaining higher interest rates for longer.

Rates will begin to fall in Q4, in tandem with the US rate cuts, Koh said.

ALSO READ: Singapore bank profits to peak in 2023, but high rates will dampen lending

“We raised our 2025 earnings forecasts for DBS by 6% and OCBC by 5%. DBS and OCBC [will] provide 2025 dividend yield of 7.4% and 6.5% respectively,” Koh added.

Follow the links for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!