Fed Rate Hike Boosts Singapore Banks, but Energy Crisis Squeezes Economy

The Fed's September rate hike offers a potential tailwind for Singapore banks, especially UOB. UOB shares rose 1.26% last week to close at $41.78, while DBS slipped 0.18% to $76.86 and OCBC fell 0.7% to $31.38. Higher US rates support local interest rates, slowing the compression in net interest margins (NIMs). UOB stands to gain most: 43% of its loans are in Singapore dollars versus 37-38% for peers, and 66% of its revenue comes from net interest...