Industry Report Card: Singapore Banks Mar 04
- ID: 2041330
- March 2004
- Region: Singapore
- Standard & Poors
Notwithstanding the challenging conditions that prevailed for most of 2003, Singapore banks maintained their strong financial profiles, characterized by stable profitability, above-average capitalization, and improving asset quality. Profitability was largely underpinned by lower loan-loss charges (aided by the gradually improving economic environment during the second half of the year), as well as higher contributions from fees and commissions (arising mainly from investment related activities). Sustained cost-management discipline also helped support profitability, as evident from the stable efficiency ratio (measured by noninterest expenses to revenues) of the three domestic banks that averaged 37.4% (at fiscal year ended December 2003). Interest margins, however, continued to face pricing pressure, spurred by the intense competition arising mainly from fewer lending opportunities, stemming from a...
Companies mentioned in this report are:
- DBS Bank Ltd.
- United Overseas Bank Ltd.
- Oversea-Chinese Banking Corp. Ltd.
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