The big3 banks have reported their 2Q/1H25 results and continue to see their NIM dropping constantly as loan yields drop much faster than deposit yields. OTOH, SingFinance is seeing the opposite as its NIM expanded with deposit yields dropping much faster than loan yields.
Do Finance firms actually have much less proportion of loans that benchmark to SORA (which has dropped ~100bps this year), hence giving it some sort of "immunity"? And they probably also have higher deposit rates to start with, hence giving them more leeway to resist against dropping them as alternatives dimmer in attraction.
FIRST HALF ANNOUNCEMENT Condensed Interim Financial Statements for Six Months ended 30 June 2025
Customer loans declined by 1% to $2.63 billion in a competitive market. Loan portfolio remained resilient with nonperforming loans ratio held steady at 0.2%. The Group continued to maintain adequate credit allowances for its credit
exposures amid economic uncertainties.
NIM expanded by 9 basis points to 2.15%, as the saving from lower deposit costs more than offset the decline in asset yields while interest rates continued to ease. Non-interest income growth was supported by strong fees and commissions and rental income, which rose by 54% and 11% respectively.
1H25 results: https://links.sgx.com/FileOpen/Announcem...eID=854363
Do Finance firms actually have much less proportion of loans that benchmark to SORA (which has dropped ~100bps this year), hence giving it some sort of "immunity"? And they probably also have higher deposit rates to start with, hence giving them more leeway to resist against dropping them as alternatives dimmer in attraction.
FIRST HALF ANNOUNCEMENT Condensed Interim Financial Statements for Six Months ended 30 June 2025
Customer loans declined by 1% to $2.63 billion in a competitive market. Loan portfolio remained resilient with nonperforming loans ratio held steady at 0.2%. The Group continued to maintain adequate credit allowances for its credit
exposures amid economic uncertainties.
NIM expanded by 9 basis points to 2.15%, as the saving from lower deposit costs more than offset the decline in asset yields while interest rates continued to ease. Non-interest income growth was supported by strong fees and commissions and rental income, which rose by 54% and 11% respectively.
1H25 results: https://links.sgx.com/FileOpen/Announcem...eID=854363