DBS, UOB and OCBC set to post poor quarter results, Latest Business News - The New Paper

DBS, UOB and OCBC set to post poor quarter results

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DBS Group Holdings and United Overseas Bank are set to report their lowest quarterly profit in at least two years, hurt by bad loan provisions for a battered oil services sector.

Nearly a dozen Singapore-listed firms in the offshore services sector have sought to restructure bonds and loans over the past two years, hit by a slump in orders as oil prices remain at a historical low.

Ezra Holdings this month flagged that it may have to take a US$170 million (S$240 million) write-down on a subsea services joint venture.

All three of Singapore's listed banks reported increases in third-quarter charges for soured loans, with DBS in particular booking a doubling to S$436 million.

"To a certain extent, the credibility of managements is on the line as well when they say there are sufficient provisions being provided for, and we'll see whether this is the case," said Mr Christopher Wong, senior investment manager at Aberdeen Asset Management Asia, which owns shares in the banks.

DBS, South-east Asia's biggest bank, is expected to show a 6.6 per cent profit decline to $936 million, its weakest performance since the quarter to December 2014, according to six analysts polled by Reuters.

No. 2 lender OCBC is set to report a 10.8 per cent fall in fourth-quarter net profit to $856 million, its lowest level in three quarters, while profit at UOB is set to drop 7.4 per cent to S$730 million, the lowest in more than three years.

The banks' reports will be released on Feb 14 (OCBC), Feb 16 (DBS) and Feb 17 (UOB). - REUTERS