Trouble brewing for banks in spots beyond just oil

IT'S looking like a case of bleak and bleaker as the fourth-quarter 2015 earnings presentations of the three local banks get underway. On Tuesday, the only light moment at the media briefing of United Overseas Bank (UOB) came when its chief financial officer deadpanned "oil prices are so cheap people are throwing it away" in a reference to an oil slip on the roads in the morning, the fourth spillage in recent weeks.

UOB's chief executive Wee Ee Cheong tried to inject some optimism by naming developments - TPP, Asean Economic Community (AEC) and China's One Road, One Belt - though how these will benefit anyone is far from clear. The TPP or Trans-Pacific Partnership, a vast Pacific-wide trade deal, has yet to be ratified and in fact could be blocked by the next US President. China's One Road, One Belt strategy, depending on which expert writes about it, seems to be more about China exerting its clout in world affairs.

On Wednesday, at OCBC Bank's 1.5-hour long results presentation, its chief executive - in case the 60 something analysts and reporters missed it - slipped in that it's not just oil and gas which is in trouble, other sectors of the economy are also under stress.