Singapore banks' 2013 housing loan growth pegged at 8%

It's just half of 2012's feat.

According to DBS, Feb 12 DBU and ACU loan growth remained stable at 15% y-o-y, equally driven by consumer and business loans. M-o-m momentum eased to 1.2% (Jan 13: 3.0%).

DBU loans are still going strong at 19.6% y-o-y, driven more by business loans at 22.7% y-o-y vs consumer loans which were stable at 15.4% y-o-y.

Housing loans have stablised at 16% y-o-y (a stable trend since Nov 12). 8% loan growth forecasted for 2013 still largely driven by business loans.

Here's more from DBS:

We 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 their home ground.

We still expect housing loans to remain fairly strong in 2013 because of previously approved mortgages; forecasting an 8% growth in mortgages for 2013, half of that achieved in 2012.

We believe there is still natural demand for new homebuyers which would support medium term growth. Based on the Jan 13 property measures, LTV for borrowers without housing loans remain at 60%.

The recently introduced measures by MAS on financing restrictions for motor vehicles (wef 26 Feb) should not have a major impact to the banks.

Car loans only comprise 2.4% of total DBU loans, and have been contracting since Jan 13.

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