These charts summarise Singapore banks' worrisome O&G exposures

The banks will likely suffer from deteriorating asset quality.

The full-year 2015 results of DBS, OCBC, and UOB revealed significant exposures to the oil and gas sector, signalling weak asset quality for Singapore's largest banks.

The rout in oil prices negatively affected domestic loans, while macroeconomic headwinds from countries like Indonesia and China hurt foreign loans, according to Eugene Tarzimanov, vice president - senior credit officer at Moody's Investors Service. Consequently, the banks reported higher nonperforming loans in 2015.

"We expect that the asset quality of all three banks will continue to deteriorate because of slowing economic and trade growth in Asia, and increasing stress for oil and gas borrowers in Singapore. The banks’ large exposures to oil services companies are particularly risky because these companies have been most affected by the collapse in oil prices," adds Tarzimanov.

Check out the charts in the slideshow below.

Also Read

Tighter policies drag South Korean household loan growth in September

SME loans in Taiwan rose in August

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit