Higher rates for Singapore banks offer huge operating leverage

Analysts believe they can rerate further.

Singapore banks are prime beneficiaries of higher short term interest rates as their assets get repriced faster and by a bigger magnitude compared to their liabilities.

According to a research note from Nomura, Singapore banks, which are trading close to their mean valuations, can rerate further, as increases in short-term interest rates become more pronounced. They benefit from higher short-term interest rates as their assets get repriced faster and by a bigger magnitude compared to their liabilities.

Both the inter-bank rate and the SWAP rate are up with the inter-bank rate 39bp higher than last year and the SWAP rate by 62bp. The SGD loans are typically pegged to these rates. For example at DBS, 40% of its SGD loans are linked to the inter-bank rate and 40% to the SWAP rate.

Nomura estimates a 100bp increase in interest rates could boost ROEs by an average of 140bp.

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.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia