Singapore’s major three major banks have long been considered to be among the safest banks in the world. There have, however, been some concerns over increased NPL formation in recent months and reduced opportunities for NIM expansion. Notwithstanding these concerns the major banks in Singapore, like United Overseas Bank Ltd. (OTCPK:UOVEF), seem well positioned to weather short term headwinds given its strong capital position. UOB also offers an attractive yield of close to 4.5%.
Macro-environment, Capital and Asset Quality
With economic growth in Singapore more sluggish in recent months NPL formation started