Housing loans not affected by softer property market

DBS Group Holdings does not expect to see bad loans in its housing loan book click higher on the back of a moderation in property prices or a potential slump in the sector here given that the bulk or some 85 per cent of its loans are for owner-occupied homes.

"It's around 85 per cent or even higher and that could be principally why our portfolio quality is better," said DBS chief executive Piyush Gupta.

Mr Gupta was asked to comment on why the bank's loan book is not displaying pressure from a softening property market when United Overseas Bank (UOB) revealed just a day earlier that its non-performing loan had climbed 7.3 per cent in the second quarter from a year ago to S$2.3 billion as payments by some high-end property buyers deteriorated.