Singapore banks face scrutiny on asset quality at upcoming Q2 results

Singapore

MOUNTING concerns over asset quality are likely to take centre stage at the upcoming quarterly results of Singapore's banking trio as companies brace for a prolonged crisis.

With businesses facing a triple whammy of lockdowns, a deep recession and the gradual unwinding of relief support measures, analysts say there is already potential loan default risk from virus-battered small and medium-sized enterprises (SMEs) that will, in turn, weigh on banks' earnings in the second quarter.