DBS Hong Kong expects the city’s loans market to stagnate in 2025 after a 6% decline in total loans in 2024, citing a property market downturn and a 200-basis-point interest rate gap between yuan and Hong Kong dollar loans that is deterring mainland borrowers. The bank also warned that some local developers could face financial difficulties despite improvements in the commercial and retail property sectors. DBS’s Hong Kong business reported a profit of SGD1.6bn (USD1.18bn) in 2024, up 1.2% year-on-year. However, net interest income fell 4% to nearly SGD2.1bn, while net interest margin dropped 11 basis points to 1.8%. Net fee and commission income rose 25% to SGD830m.