Entering 2H FY2023, investors are starting to rejoice as inflation is coming down from its peak of 9.1% in June 2022 to just 4% in May 2023. Despite this piece of good news, the FEDs are still planning on hiking rates a few more times before the year closes. Generally, higher rates would benefit banks more since this helps them increase their Net Interest Margin (NIM) but if the economy slows down due to the high interest rate, that would result in lower borrowing and spending, which ultimately impacts the banks negatively. Our 3 local banks namely DBS (SGX: D05), UOB (SGX: U11), and OCBC (SGX: O39) have started to see their share price being negatively impacted from its peak in February. Does this mean that they are undervalued? In this article, I will cover the recent 1H FY2023 earnings of our 3 local banks as well as discuss if they are undervalued at their current valuation. 1H FY2023 Operating Performance  ...