Which bank in Singapore is susceptible to unchanged interest rates?

This involves the SGD SIBOR as well.

The market in Singapore is increasingly expecting SGD SIBOR to rise from the middle of next year.

According to a research note from Maybank Kim Eng, its house believes SGD SIBOR will climb to 1.00% by end-2015 and 2.00% by end-2016, from 0.40%.

With global inflationary pressures receding, commodity prices falling and the global economy still limp, Maybank Kim Eng sees less reason for the Fed to raise interest rates.

Without the Fed’s decisive move, a SGD SIBOR rise is remote, in Maybank Kim Eng's opinion, given their tight correlation.

In the event that rates are unchanged until end-2015, DBS probably has the most earnings downside, ceteris paribus. Its FY16E earnings could fall short of our estimate by as much as 14%.

Here's more from Maybank Kim Eng:

UOB may be better insulated. Our forecasts, especially for FY16E, are significantly higher than consensus.

On this basis, consensus appears less optimistic than us on interest rates. This suggests share-price reactions in our coverage universe may be mild when interest-rate hikes do get pushed back.

We expect banks’ re-rating to continue in 2015 on further earnings deliveries. Banks have already bucked low interest rates to deliver three quarters of positive earnings surprises.

Waning interest in the oil & gas sector may just benefit them, through sector rotations. For exposure, DBS is our first choice, followed by UOB.

We remain cautious on OCBC over its Wing Hang Bank integration. No change in our EPS or TPs for now.