Experts said that rising concerns over trade tariffs could lead to more share price volatility even though the shares of Singapore’s three local bankers are already at their lowest level in more than seven weeks.
Numerous industry experts have downgraded their view for the local bank group and cut goal prices in recent days, citing the possibility of higher credit risk and weaker loan requirement and earnings.
Since US President Donald Trump announced sweeping levies on dozens of countries a week ago, the three local businesses have experienced double-digit falls, igniting fears of a worldwide business war and crisis.
These fears will grow even further as China’s most recent retaliatory action, which will start on Thursday ( Apr 10 ), imposes 84 per cent tariffs on US goods  .
DBS, which ended Wednesday at S$ 37.16, has fallen 19 % since the taxes were introduced for the first time on April 2 were applied.
OCBC’s closing price of S$ 30.99 on Wednesday marked an 18 % decline, next seen at S$ 14.42, while UOB’s closing cost of S$ 30.99 was last seen at S$ 14.42, which had fallen by 16 % over the previous five investing classes.
According to CNA’s estimates, the three regional lenders have lost roughly S$ 48.8 billion in market value since April 2.
After President Trump announced a 90-day wait in tariffs for most states on Wednesday, which saw promote prices surge on Wall Street, those declines may experience some setbacks.
” Problem Profits RISKS”
Lenders may not be directly affected by the tariffs, but they will experience the effects through slower economic growth, industry, and business activities, according to analysts.
Businesses are more hesitant to spend money or apply for loans when expansion slows. The typical client also has this problem. Payment delays could also be a possibility for investors, which is bad information for businesses.
Particularly bad for Asia’s production and export-oriented economies are the tariffs and the possible chilling effects on global trade and development. The region experiences higher US tariffs, with rates ranging from 18 % to 49 %, in addition.
The” decline in intra-regional business triggered by mutual tariffs will resound across supply stores in the region,” said UOB Kay Hian, adding that the manufacturing business may experience “turmoil and work losses.”
The brokerage added that the Singapore banks may experience the greatest effects from lower loan development and higher credit costs as a result of their exposure to the area, given that non-performing loans are a result of this.