DBS shares down on warning of higher provisions over O&G stress

Singapore

SHARES OF DBS fell more than 2 per cent on Friday, after the bank's chief warned of bigger specific allowances than expected, given the continued stress in the oil & gas segment.

This comes as the oil & gas service players still find it hard to regain pricing power that would allow them to cover expenses, and as the value of collaterals that back loans are expected to fall further, said the bank's chief executive officer, Piyush Gupta, at a press briefing.

DBS's net profit rose 8 per cent from a year ago to S$1.14 billion for its second quarter, against a Bloomberg estimate of S$1.16 billion from a poll of six analysts. It also missed slightly the average forecast of S$1.15 billion from fi…