- Joined
- Jul 24, 2008
- Messages
- 33,627
- Points
- 0
<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published October 1, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Business loans rise after a 9-month swoon
Loans grew 1.2% in August, ending period of decline
By CONRAD TAN
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>
(SINGAPORE) Bank lending to businesses grew in August for the first time in nearly a year as loans to various industry sectors picked up amid improving sentiment.
Loans to businesses grew 1.2 per cent, or some $1.8 billion, over the month to $153.5 billion at the end of August, after nine straight monthly declines, the latest estimates from the Monetary Authority of Singapore (MAS) show.
But that was still 1.7 per cent lower than a year earlier, and 5.9 per cent below the peak of $163.2 billion at the end of October last year.
Overall, the total amount of Singapore-dollar loans held by banks here rose one per cent over the month to $274.6 billion at end-August, reversing a 0.1 per cent dip in July. That's the highest month-end level of outstanding bank loans here since last October, when lending hit a record high of $275.9 billion.
Compared with a year earlier, total loan volume at end-August was 2.5 per cent higher.
An increase in loans to non-bank financial institutions - a category which includes real estate investment trusts (Reits) - as well as the business services sector accounted for much of the $1.8 billion increase in business loans in August.
<SCRIPT language=javascript> <!-- // Check for Mac. var strAgent; var blnMac; strAgent = navigator.userAgent; strAgent.indexOf('Mac') > 0 ? blnMac = true:blnMac = false; if (blnMac == true) { document.write('
'); } //--> </SCRIPT><TABLE border=0 cellSpacing=0 cellPadding=4 width=300 align=right><TBODY><TR><TD vAlign=top align=middle>
<!-- AdSpace --><IFRAME height=250 marginHeight=0 src="http://ads.asia1.com.sg/html.ng/site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250" frameBorder=0 width=300 marginWidth=0 scrolling=no bordercolor="#000000"><script language='JavaScript1.1' src='http://ads.asia1.com.sg/js.ng/Params.richmedia=yes&site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250'></script><noscript>
</noscript></IFRAME><!-- /AdSpace-->
</TD></TR></TBODY></TABLE>Increased lending to the general commerce and transport, storage and communications sectors also contributed to the rise in business loans outstanding at the end of the month.
But lending to the building and construction sector slid further, by 0.8 per cent, to $48.4 billion - the fifth straight monthly decline.
Lending to the manufacturing sector also remained subdued. Outstanding loans to the sector stood at $11.6 billion as at Aug 31, down 0.1 per cent, or $16 million, from a month earlier.
While sentiment in financial markets has picked up sharply in recent months, the manufacturing sector has yet to show definite signs of a strong recovery. Singapore's manufacturing output declined 5.6 per cent in August on a seasonally adjusted, month-on- month basis, the government said last week. Compared to a year earlier, however, manufacturing output rose 12.3 per cent in August, though that was due to gains in the notoriously volatile biomedical manufacturing segment.
The MAS data showed that total consumer loans continued to grow in August, rising 0.9 per cent during the month to $121.1 billion, compared with $120 billion at end-July.
Housing and bridging loans drove the increase, expanding $808 million, or one per cent, over the month to $85.1 billion.
Loans to individuals for share financing jumped 20 per cent over the month to $960 million - the highest since August last year, as investors attracted by the recent stockmarket rally borrowed more to buy shares.
Still, Leng Seng Choon, analyst at DMG & Partners Securities, said in a research note yesterday that he expects bank lending to be 'lacklustre for the next few quarters'.
'As equity investors turn more cautious, we can expect loans to segments such as financial institutions and share financing to be affected,' he said.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Business loans rise after a 9-month swoon
Loans grew 1.2% in August, ending period of decline
By CONRAD TAN
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Feedback</TD></TR></TBODY></TABLE>(SINGAPORE) Bank lending to businesses grew in August for the first time in nearly a year as loans to various industry sectors picked up amid improving sentiment.
Loans to businesses grew 1.2 per cent, or some $1.8 billion, over the month to $153.5 billion at the end of August, after nine straight monthly declines, the latest estimates from the Monetary Authority of Singapore (MAS) show.
But that was still 1.7 per cent lower than a year earlier, and 5.9 per cent below the peak of $163.2 billion at the end of October last year.
Overall, the total amount of Singapore-dollar loans held by banks here rose one per cent over the month to $274.6 billion at end-August, reversing a 0.1 per cent dip in July. That's the highest month-end level of outstanding bank loans here since last October, when lending hit a record high of $275.9 billion.
Compared with a year earlier, total loan volume at end-August was 2.5 per cent higher.
An increase in loans to non-bank financial institutions - a category which includes real estate investment trusts (Reits) - as well as the business services sector accounted for much of the $1.8 billion increase in business loans in August.
<SCRIPT language=javascript> <!-- // Check for Mac. var strAgent; var blnMac; strAgent = navigator.userAgent; strAgent.indexOf('Mac') > 0 ? blnMac = true:blnMac = false; if (blnMac == true) { document.write('
'); } //--> </SCRIPT><TABLE border=0 cellSpacing=0 cellPadding=4 width=300 align=right><TBODY><TR><TD vAlign=top align=middle>
<!-- AdSpace --><IFRAME height=250 marginHeight=0 src="http://ads.asia1.com.sg/html.ng/site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250" frameBorder=0 width=300 marginWidth=0 scrolling=no bordercolor="#000000"><script language='JavaScript1.1' src='http://ads.asia1.com.sg/js.ng/Params.richmedia=yes&site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250'></script><noscript>
But lending to the building and construction sector slid further, by 0.8 per cent, to $48.4 billion - the fifth straight monthly decline.
Lending to the manufacturing sector also remained subdued. Outstanding loans to the sector stood at $11.6 billion as at Aug 31, down 0.1 per cent, or $16 million, from a month earlier.
While sentiment in financial markets has picked up sharply in recent months, the manufacturing sector has yet to show definite signs of a strong recovery. Singapore's manufacturing output declined 5.6 per cent in August on a seasonally adjusted, month-on- month basis, the government said last week. Compared to a year earlier, however, manufacturing output rose 12.3 per cent in August, though that was due to gains in the notoriously volatile biomedical manufacturing segment.
The MAS data showed that total consumer loans continued to grow in August, rising 0.9 per cent during the month to $121.1 billion, compared with $120 billion at end-July.
Housing and bridging loans drove the increase, expanding $808 million, or one per cent, over the month to $85.1 billion.
Loans to individuals for share financing jumped 20 per cent over the month to $960 million - the highest since August last year, as investors attracted by the recent stockmarket rally borrowed more to buy shares.
Still, Leng Seng Choon, analyst at DMG & Partners Securities, said in a research note yesterday that he expects bank lending to be 'lacklustre for the next few quarters'.
'As equity investors turn more cautious, we can expect loans to segments such as financial institutions and share financing to be affected,' he said.
</TD></TR></TBODY></TABLE>
