Asia Pacific 'aa-' rated Banks: Report Card

...We expect only a moderate increase in impaired-loan ratios in this peer group, given the banks' disciplined underwriting standards Australian banks' credit cycle is likely to have turned for the worse, as has the credit-cycle in Hong Kong and Singapore Singapore banks benefit from their healthy provision buffers of 128% HKSB benefits from its regional diversification We expect Singapore banks' profitability to remain stable with better net interest margins offsetting higher credit costs An increase in dollar interest rates would benefit HKSB the most given its structural liquidity position The ratios of Australian banks could decline as they comply with upward adjustments to risk-weighted assets (RWAs), as required by regulators We expect Singapore banks to continue accreting capital to offset regulatory-driven upward adjustments in RWAs HKSB's standalone ratios will continue to strengthen to meet regulatory requirements. Its consolidated ratio benefitted from the sale of its minority stake...

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