These banks will highly benefit from China’s early reopening

DBS and OCBC Bank will perform well this year.

Broker, RHB, maintained an overweight rating on the banking segment in Singapore, with top picks being DBS and OCBC Bank.

These banks have a bright future in 2023, which will post 21% year-on-year growth in sector core earnings, supported by a rebound in fee income and China’s recent opening.

Loan growth is seen to be mid-single digit and the NIM will expand by 20 basis points (bps) to 35 bps this year.

Fees income is also expected back banks’ earnings in 2023. Banks are likely to offer higher dividends in the future.