Singapore banks weakest in Asia

Earnings to barely grow 2% YoY.

Nomura forecasts ASEAN banks to post average earnings growth of 13% in 2013F, slightly lower than the 17% projected by us for 2012. This compares with growth of 12% for BRICS countries in 2013F versus no growth in 2012F.

However, ASEAN countries have generally been seeing rising earnings estimates for 2013F, said Nomura.

Within ASEAN, the strongest growth in 2013F is forecast for Thailand and Indonesia. Singapore (2%) and the Philippines (6%) are expected to post the weakest growth.

The key drivers of growth in 2013F are expected to be loan growth (14% in 2013F vs. 15% in 2012F), higher
margins, lower cost structures and stable provisions.