Singapore banks see 10% of portfolio vulnerable to virus outbreak impact

SWEPT into fresh uncertainty from the virus outbreak, Singapore banks are cautious over the next three to six months, with about 10 per cent of their total loan portfolio seen to be exposed to vulnerable sectors for now.

The trio wrapped up the full-year 2019 results season that met or exceeded market expectations with their record showing, and raised their dividend payout from a year ago.

But with questions lingering over how the novel coronavirus will further test global supply chains and international travel amid a stronger economic integration with China today, the lenders warned that the virus outbreak will hit segments in the direct line of fire, such as tourism and retail, as well as manufacturers that are already reporting higher costs in the scramble to find supplies.