SINGAPORE (June 4): Phillip Securities is maintaining the Singapore banking sector at “accumulate” given loans growth remains healthy locally and in Hongkong while the continuing rise in SIBOR (Singapore Interbank Offered Rate) and SOR (Swap Offer Rate) should keep NIM (Net Interest Margins) elevated.

In a Monday report, analyst Tin Min Ying says banks are guiding for high single-digit loans growth this year. In April, Singapore’s domestic loans grew 5.7% y-o-y driven by business loans that expanded 6.1%. Consumer loans growth in April was 5.1% y-o-y, sustaining the strong momentum seen since in November. Mortgage loans maintained its steady pace of growth at 4.7% y-o-y. Car loans growth spiked to five-year highs, rising 7.8% y-o-y in April.

In Hong Kong, loans in April grew 17.1% y-o-y – the fastest in six months. Loans growth was supported by HKD loans growth of 25% y-o-y, boosted by IPO financing. Excluding IPO, HKD loans rose 19%. Hong Kong's residential volume and value showed renewed vigour after some weakness in January. According to JLL Hong Kong, May residential sales volume was up 55.9% m-o-m and value was up 59.3% m-o-m, driven by demand from first-time homebuyers and the ability of developers to drive up prices in the secondary market where supply is limited... (Click here to read the full story)