Hong Kong banks' margins amongst lowest in Asia

Amazingly, HK banks are stronger than Singapore's.

According to Barclays Reseach, from 2009 to 2011, Singapore witnessed the maximum margin decline among Asian banks, down 35bps. Singapore banks reported margin falls during both 2010 and 2011. 

Here's more from Barclays Research:

With the aim to gain a better understanding of emerging trends in our Asia ex-Japan banks coverage universe, we looked at NIMs during 2009-13E, for all our coverage banks spread across seven regions/countries.

The following are the key points which emerged from our study:

 During 2009-11, AEJ banks’ NIMs expanded by 6bps, primarily led by China, Korea and  India. NIMs for China banks increased by 42 bps during the period, followed by Korea  (up 30bps) and India (up 16bps). Singapore and International banks witnessed margin  declines: 35bps and 27bps, respectively.

 Looking ahead, AEJ banks’ NIM is expected to decline by 11bps in the next two years: 6bps in 2012 and 5bps in 2013E. China, Korea and Singapore would lead the margin  falls with reading of 37bps, 31bps and 14 bps, respectively. While Taiwan and HK banks are expected to trend up during the period, margins for International banks would post flat growth.