SINGAPORE (Feb 21): Singapore’s local banks of ‘AA–‘ credit ratings and Stable Outlooks will continue to be supported by their adequate profitability, disciplined funding and liquidity and strong capitalisation, despite weaker asset quality, says Fitch Ratings.

In the Singaporean Banks Report Card 2016 published on Monday, the ratings agency says the credit profiles of the three banks — DBS Group Holdings (AA-/F1+/Stable), United Overseas Bank (UOB, AA-/F1+/Stable) and Oversea-Chinese Banking Corp (AA-/F1+/Stable) — stayed resilient in 2016 in the face of a challenging operating environment and continued weakness in the offshore services sector, which pressured the banks' asset quality and profitability.

The combined weighted-average NPL (Non-Performing Loan) ratio for the three banks had risen to 1.40% by end-2016, from 1.06% in the previous year.

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