O&G issues yet to hit bottom, says OCBC; Q2 profit drops 15%

Singapore

OCBC Bank - which reported a 15 per cent fall in second-quarter net profit - has seen deepening issues in the oil-and-gas sector amid the oil rout, but does not see the stress broadening out, for now, said chief executive officer Samuel Tsien.

The bank, in taking a conservative approach in restructuring and classifying bad loans in the sector, has been focused on getting oil-and-gas clients to deleverage for five quarters now. "Our distressed indicators for this portfolio continue to deepen, but have not broadened," Mr Tsien said.