SINGAPORE: Singapore banks are likely to report their average net interest margins fell the most quarter-on-quarter in 18 years as interest rates weakened, while profits on the year are seen taking a hit from the impact of the COVID-19 pandemic and weak asset quality.
Uninspiring results could add to investor disenchantment with the lenders, the biggest in Southeast Asia, after the city-state's central bank capped their dividends last week, sparking a sell-off in their shares.
The market's focus when DBS Group and its two smaller rivals report results this week will be on any signs that the June quarter marked the trough for net interest margins, a key measure of profitability, as economies emerge from months of lockdown.
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