Singapore banks profits to jump 16%

But here is the catch.

According to Barclays, 4Q12 underlying profit down by 2% q/q. The firm forecasts the combined underlying profit for the three Singapore banks to rise 16% y/y in FY12E but decline sequentially by 2% q/q in 4Q12E (some 4Q seasonal weakness and continued margin pressure, -2bps q/q).

Barclays tweaks its full year FY12-14E profit estimates up by 0-4%, reflecting slightly better returns on investment securities and lower credit costs, offsetting the impact
from slower mortgage growth.

Here's more from Barclays:

We cut our mortgage growth estimate to 5% in FY13E and 0% in FY14E (from 10% previously). Results will be announced on 6 Feb for DBS, 15 Feb for OCBC and 27 Feb for UOB.

Expect falling dividend payout for DBS: The Singapore banks are among the best capitalized in the region with core Tier 1 ratios in excess of 11%+ on a fully loaded Basel III basis, on our estimates.

We expect no change to the dividend payout ratio of 40% for UOB and 45% for OCBC. However, we forecast DBS to maintain 56c full year DPS between FY12 and FY14E (i.e. declare 28c final dividend in 4Q12), implying the dividend payout ratio falls to 35% in FY12E (from 45% in FY11), in order to conserve capital in preparation for the acquisition of Danamon (which is still pending regulatory approval).

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. 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