Skip to content
Subscriber Only

Singapore Banks Post Profit Declines on Mounting Provisions

  • DBS, UOB saw drops in lending income during second quarter
  • Executives point to uncertainty once relief programs end
Video player cover image
Watch: Lee Wai Fai, chief financial officer at United Overseas Bank Ltd., discusses the bank’s results, the impact of coronavirus on the business and the bank’s long-term strategy. (Source: Bloomberg)
Updated on

Two of Singapore’s largest banks laid out the damage to their balance sheets caused by the pandemic, reporting the second straight quarterly plunge in profits and another surge in bad-debt provisions.

DBS Group Holdings Ltd. saw its net income fall 22% from a year earlier and United Overseas Bank Ltd. posted a 40% drop as a slump in lending income added to their woes, results for the three months ended June 30 showed Thursday. Still, chief executive officers of both banks signaled they can weather the economic storm, maintaining earlier guidance on credit costs. That helped the shares gain, with DBS rising as much as 2.6%.