The three Singapore banks will report their 1Q14 earnings on the same date, Wednesday, April 30, with DBS and OCBC before market opens and UOB after market close. We expect earnings to be softer for the quarter given weaker trading line, but core operating trends such as NIM, loan growth and asset quality should remain steady and likely be in line with expectations. 1Q14 trend: Flattish NIM to continue for now, softer market-related income The SG banks will report another quarter of stable but flattish NIM as banks were cautious in lengthening the asset duration. Capital market activities remained dull, and this would negatively impact trading and other marketrelated income (average daily turnover rose 9% QoQ, dropped 37% YoY). Given continued low interest rate and low unemployment, loan pipeline should remain healthy as credit cost is still not a concern for the sector.
SGX reported 3QFY14 earnings of S$75.8mn, up 1% q/q, down 22%y/y and in-line with our estimates. The y/y deceleration in earnings was mainly due to a 37% decline in SDAV (S$1.1B in 3Q), resulting in a 32% y/y decline in securities revenue. Operating expenses were up 1% q/q and 3% y/y to S$77mn. Operating margins declined by 16bps q/q and came in at 53%.
QT Vascular is engaged in the design, assembly and distribution of advanced therapeutic solutions for the minimally invasive treatment of complex vascular diseases. It produces devices to treat diseased arteries in the heart and other parts of the body, and aims to develop new products and enhance existing ones. QT Vascular operates two assembly facilities, one in Singapore and one out of California.