Singapore banks brace for upward pressure on staff costs

But cost/income ratio stands at 43-44%.

According to Barclays, as revenue growth slows, the banks will take a disciplined approach to managing expenses, with management targeting for neutral jaws and a stable cost/income ratio of 43-44% for the full year.

However, the MAS expects the economy to remain in full employment and wage growth to be stronger.

Therefore, we expect upward pressure on staff costs. We currently forecast a stable cost/income ratio for 3Q and 4Q12E.

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