DBS general allowance ‘more than adequate’: CEO Tan Su Shan
Total allowance stands at S$6.4 billion, comprising S$4.1 billion in general provisions and S$2.4 billion in specific allowances
[SINGAPORE] DBS’ general allowance reserves are “more than adequate”, said its chief executive Tan Su Shan.
Chief financial officer Chng Sok Hui noted that the bank will also not top up its general allowances any further, especially after it increased its overlay general provisions by S$200 million earlier in 2025 to incorporate uncertainty over US tariffs.
“(The general allowances) are more than adequate because we actually exceeded the (regulatory requirement),” Chng said at a briefing for the lender’s third-quarter results on Thursday (Nov 6).
This comes as UOB on the same day posted a 72 per cent decline in net profit to S$443 million, after it took S$1 billion in additional provisions.
The provisions include an additional S$615 million in “pre-emptive” general allowance in view of ongoing macroeconomic uncertainties and sector-specific headwinds.
The bank also had higher specific allowance for a few non-systemic corporate accounts, which largely include its commercial real estate clients in the US and Greater China.
Overall, UOB’s total allowances as at Sep 30 was S$1.17 billion, more than four times or S$885 million higher than the S$281 million set aside in the same period the previous year.
Meanwhile, DBS’ total allowance stood at S$6.4 billion, comprising S$4.1 billion in general allowances and S$2.4 billion in specific allowances.
DBS’ general allowance reserves also comprise two components. The baseline general provision is set aside for base scenarios, while the overlay component covers stress scenarios such as macro uncertainty and sector-specific headwinds.
As at Sep 30, DBS’ total general provision stack of S$4.1 billion comprised a baseline segment of S$1.6 billion, and an overlay provision of S$2.5 billion.
This brings its allowance coverage ratio to 139 per cent.
Tan also noted that the bank could write back some of its general provisions in 2026 if conditions stay resilient.
“And if conditions soften, we have quite a bit of buffer, through our allowance reserve and our strong capital ratios,” she added.
