SINGAPORE – Singapore’s second-largest lender, Oversea-Chinese Banking Corp., posted a quarterly net profit decline of 18% to its lowest level in three years, dragging down 57% of bad debts.
Bank of Singapore’s pressing oil services sector, as well as the slowdown in lending growth due to weak regional trade, have given national lending institutions prospects.
Samuel Tsien, chief executive of OCBC, said the bank’s overall portfolio quality remained solid but “continues to be under pressure, especially in the oil and gas support services sector, which has led to an increase in non-performing loans and allowances.
For the three months to December, OCBC’s net profit was S $ 789 million ($ 571 million), compared to S $ 960 million for the same period last year, with an average expectation of $ 856 million from six analysts surveyed by Reuters.
Annual net profit fell 11%.
OCBC’s net quota for loans and other assets rose to S $ 305 million in the fourth quarter from a year ago.
Singapore’s largest bank DBS Group Holdings Ltd and the third largest lender in the United UOB announced later this week.
