It's high noon for Singapore banks to go out of home grounds: analyst

Stronger non-S$ loan growth.

According to DBS, post 4Q12/FY12 results, banks continue to guide high single digit loan growth. "We are forecasting 8% loan growth for 2013, still largely driven by business loans," DBS said.

They also expect growth from non-S$ loans to be stronger. Given the competitive environment within Singapore, it is crucial that banks start to grow quicker outside its home ground.

Here's more from DBS:

For FY12, loans for the Singapore banks collectively grew 7.7% y-o-y, with UOB the strongest at 8.3% and OCBC the slowest at 6.6%.

By loan composition, loans were driven by building and construction, housing loans and loans to professionals and individuals. By currency, loans were driven by S$ and RM loans.

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