Citi Downgrades UOB To ‘Neutral’, Lowers Target Prices On All Three Banks, As It Sees Downside Risks To NIMs
Citi Research analyst Tan Yong Hong believes there could be downside risks to Singapore banks’ net interest margins due to plummeting rates on the Singapore Overnight Rate Average and the market pricing in more rate cuts from the US.“Despite stable US rates, SORA has been pressured lower on [the] Monetary Authority of Singapore’s incompletely sterilised foreign exchange interventions and flush banking system liquidity,” Tan writes in a report dated March 11 .In his view, this could continue