SINGAPORE (May 12): The 1Q 2017 financial results of Singapore’s three largest banks by assets – DBS Bank, Oversea-Chinese Banking Corp and United Overseas Bank – reveal a moderation in their asset risk and an improvement in overall profitability, says Moody’s the credit ratings agency in an in-depth report.  

“This trend is in line with our view that nonperforming loan (NPL) formation rates and credit costs, primarily from the embattled oil and gas services sector, peaked in 2016 and suggests that these banks' asset quality and profitability pressures will remain manageable. Furthermore, the banks' loss-absorption buffers have improved amid a slower pace of risk-weighted asset growth,” says Moody’s in the report published on Friday.

Here are five observations that helped Moody’s come to this conclusion. The agency has rated DBS, OCBC Bank and UOB each at Aa1/Aa1 stable.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook