Singapore banks ride wave of recovery, but keeping an eye out for Asean

SINGAPORE banks are on the watch for signs of asset quality deterioration in Asean, given fresh lockdowns and resurging Covid-19 cases in the region, but strong capital levels and ample provisions should be more than enough to help them tide through, analysts have said.

This comes as the trio of banks ride the wave of global economic recovery, reporting strong double-digit growth in second-quarter net profits that beat street estimates, on the backs of lower allowances for bad loans and higher wealth management fee income.

In the second quarter, DBS' net profit jumped 37 per cent to S$1.7 billion; OCBC's net profit soared 59 per cent to S$1.16 billion, and UOB's net profit surged 43 per cent to S$1 billion.