Singapore banks brace for another wave of bad loans from O&M

SINGAPORE (Aug 25): Singapore’s three biggest local banks – DBS Group Holdings, Oversea-Chinese Banking Corp, and United Overseas Bank – have been among the best-performing stocks in the Straits Times Index over the past year.

Now, the prospect of higher provisions for non-performing loans (NPLs) could weigh heavily on these counters.

During a results briefing on Aug 4, DBS CEO Piyush Gupta warned that the bank is likely to see higher provisions for bad loans over the next couple of quarters because of continued weakness in the offshore and marine (O&M) sector.

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