Singapore banks' net interest margins finally show signs of stability

And they've started to hike loans.

According to DBS, NIM has finally started to stabilise, as evidenced in the recent set of 2Q13 results. NIM pressure appears to be well combated.

Banks have started to price up loans. As such, banks with higher CASA composition as well as better S$ liquidity should be well positioned.

"We believe OCBC is in a better position (vs UOB) given that its S$ loan-to-deposit ratio is 84% (UOB: 95%) while its CASA to total deposits stands at 50% (UOB: 42%)," DBS said.

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