Singapore banks in spotlight over upcoming Q1 provisions, dividends

DBS, OCBC, UOB likely to see higher provisions given their O&G exposure; earnings widely expected to come down, dividends may be cut: analysts

Published Tue, Apr 28, 2020 · 09:50 PM

Singapore banks

Singapore

THE scale of bad loan provisions and how the dour economic environment will impact dividends will be closely watched by analysts in the upcoming results of Singapore's banks - the first quarter that will reflect the early impact of a global pandemic.

As it is, the Big Three - DBS, OCBC and UOB - are likely to see higher provisions on the back of their oil and gas (O&G) exposure and as businesses take a harder hit with the deepening recession, said analysts.

Earnings are widely expected to come down for the trio, with the potential for dividends to be cut to conserve capital, they added.

For the three banks, Jefferies' equit…