DBS to report a 3% loan growth in Q4

It would be driven by housing loans.

DBS's underlying loan growth in 4Q16 is expected to maintain a moderate pace of 1% QoQ and 3% YoY, UOB KayHian said.

The firm noted that this would be driven by housing loans in Singapore and corporate loans across the region.

"Net interest margin is expected to have slipped a couple of bp on a sequential basis from 1.77% in 3Q16 due to the lag effect from the sharp pullback in SIBOR and SOR (positive impact from the rebound post-US presidential election would be felt in 1H17)," UOB explained.

More so, the research house expects fees o have been seasonally softer in 4Q16, especially from market-sensitive sources such as stockbroking and investment banking.

"However, due to a low base, we expect a 20% YoY growth in fees in 4Q16, driven by wealth management and credit cards. Net trading income and gains from investment securities were also expected to have been seasonally weaker," it stated. 

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