Citi at ease with Singapore banks' provisions amid relief extension
CITI analysts remain "comfortable" with Singapore banks' credit cost forecasts even as debt relief for certain individuals and small businesses will be extended into 2021.
"We concede that this could serve to further push back the full recognition of peak non-performing loans (NPLs) into late 2021 and hence add to investor uncertainty," said Citi analyst Robert Kong in a report on Tuesday, referring to the impact from the latest debt extension relief. "But we remain comfortable with our 2020/2021 cumulative provisions assumptions."
Citi said from discussions with banks, the local lenders expect about 10 to 15 per cent of vulnerable loans booked by the trio lapsing into ne…
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