Why Singapore banks' strong start in 2013 may be short-lived

Domestic loans surged 18.3%.

According to DBS, Singapore banks were off to a strong start in Jan 13 but they're unlikely to sustain. Jan 13 cumulative DBU and ACU loan growth surged 3.0% m-o-m and 15.0% y-o-y, stronger than expected, led by business loans.

Domestically (using DBU as a proxy), loans grew 1.8% m-o-m and 18.3% y-o-y, also led by business loans, particularly construction.

Here's more from DBS:

ACU loans were equally strong at 1.3% m-o-m and 11.2% y-o-y. Housing loans did not appear to have moderated and we understand from the banks that there is still strong draw down pipeline to support growth over the next few quarters.

That said, post tighter regulations on the residential property market, mortgage applications have dwindled.