Singapore banks show stunning loan growth at 24.2% YoY

And this is driven by business loans which expanded 27.5% in May.

According to DBS, this is the highest growth rates since end-2008.

Here’s more from DBS:

Loans grew at its strongest rate in May-11 at 3.5% m-o-m, 8.7% q-o-q and 24.2% y-o-y. Business loans expanded 4.3% m-o-m, 12.2% q-o-q and 27.5% y-o-y, the highest growth rates achieved since end-2008; clear cycle of business loan growth from capacity expansion.

YTD loan growth stood at 12.6%, driven by business loans (+17.5% YTD). Consumer loans chugged along by 7% YTD while housing loans grew by 6.5%. Although gradually moderating, we believe that there is still sufficient mortgage loan draw downs to ensure mortgage loans remain fairly strong for at least another next 4-6 quarters although we believe the momentum achieved in 2010 would not be repeated (mortgage loan growth in 2010 was 23%).

Deposits grew strongly by 13% y-o-y but only at 0.5% m-om, still driven by current and savings deposits, which collectively comprise 58% of total deposit base. Loan-to-deposit ratio further inched up to 79%. While on the higher end of historical trends, we view that liquidity remains
ample and banks will continue to strive for deposit growth.

Loans growth remains the variable for earnings surprise for the Singapore banks. Based on our estimates, every 1% increase in loans growth (holding other variables constant), earnings could increase by 2-3%. There is a significant upside to our loan growth assumption for 2011, which is currently at 13%.

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