Chart of the Day: Singapore banks' loan growth could slow down to 6.2% in 2019

Investors should take comfort that loan growth is still in the positive territory, analysts said.

This chart from RHB shows that bank loan growth for Singapore’s big three is expected to ease down to 6.2% in 2019 from a forecast of 8.2% in 2019 amidst an impending economic slowdown.

The research firm also noted that the lower-than-expected net interest margin (NIM) expansion and the possible rise in non-performing loans for Singapore banks.

“However, we believe the recent price corrections have priced in negatives for banking stocks, and there exists limited downside to their share prices,” RHB said. "Whilst the outlook for 2019 loan growth has moderated since the beginning of 2018, it is still in positive territory."