, Singapore

Chart of the Day: Check out which Singapore bank would be most sensitive to a US 100bp rate hike

Its sensitivity increased alongside a rise in HKD and USD loans.

DBS has already outperformed the STI by 15% since 1H14.

According to a report by BNP Paribas, a 100bp rate hike would lift ROE by 18% for DBS, 11% for OCBC and 7% for UOB, in turn lifting 2015E P/Bs by 12- 26%.

DBS has outperformed the STI 15% since 1H14, so analysts from BNP Paribas think OCBC (at 1.2x FY15E P/B) has the most upside potential as the region’s second most rate-sensitive bank.  

BNP Paribas adds that for OCBC, its sensitivity to US rate hikes should have increased after its acquisition of WHB given increased total HKD and USD loans. 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Top News

MPACT prices $200m green notes due 2033
The proceeds will be used to finance or refinance eligible green projects under its green finance framework.
82% of Singapore firms pulled back live AI agents: survey
Despite leading APAC in AI deployment, many enterprises still face reliability, governance, and infrastructure challenges.