Asset quality stress, dividend cap in focus for Singapore banks in 2021

Singapore

SINGAPORE banks' asset quality risks are expected to remain manageable for now, buoyed in part by hefty provisions and extended relief measures.

Ahead of the banks' fourth-quarter 2020 results this month, analysts say they will watch their post-moratorium repayment trends in the quarter. They are also awaiting clarity on the banks' dividend cap, with broad expectations of higher payouts in 2021 as business sentiment lifts.