UOB's increased loans to oil & gas a sign the worst has peaked

Bank's Q4 net down 6%; total loans up fastest in 2016, by 9%; bigger rivals DBS, OCBC grow loans by 6% and 5% respectively

Published Fri, Feb 17, 2017 · 09:50 PM

Wee Ee Cheong

Singapore

IN yet another sign that Singapore banks' oil and gas woes might have peaked, United Overseas Bank (UOB) has increased its lending to the sector by S$4.5 billion.

The bank on Friday disclosed its latest exposure to the struggling oil and gas sector following the release of its fourth- quarter earnings, which fell 6.2 per cent to S$739 million. The results were better than expected; UOB surprised with lower provisions, down 31.4 per cent, as it released some allowances from previous years. Analysts polled by Reuters and Bloomberg had forecast S$730 million.

The bank's exposure to oil and gas rose to S$17.7 billion in Q4 from S$13.2 billion in Q3, due mainly to mor…