SINGAPORE (Feb 13): The woes of Singaporean energy-services provider Ezra Holdings are a stark reminder to the city’s biggest banks of the threat souring oil and gas loans pose to their earnings.

A writedown flagged by Ezra recently has refocused attention on the debt-repayment problems marine-services firms are facing, fuelling concerns that lenders may have to set aside more money to cover loan losses. Fourth-quarter results due this week from DBS Group Holdings and its two biggest rivals may include a 44% surge in combined provisions for the period from a year earlier, according to RHB Capital Bhd.

“At the end of the day, it’s the issue of provisioning that will weigh down on profitability,” said Leng Seng Choon, an RHB analyst in Singapore.

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