Here’s a silver lining for Singapore’s three biggest banks

All's not lost despite slowing loan growth.

Banks will face a double whammy of slowing loan growth and moderating earnings growth in coming quarters, but analysts believe that their solid balance sheets provide a sense of comfort in these trying times.

For instance, OCBC noted that although slowing regional economies pose challenges for local banks, the three lenders are nonetheless cushioned by their healthy financials.

“After several years of strong loans growth and consecutively higher earnings, the local banks are entering into 2016 on a more muted note. [However], a key positive is the strong balance sheets of the local banks as well as the still low level of NPLs,” OCBC said in a recent report.