UOB sees higher credit costs, OCBC expects muted revenue following Malaysia's lockdown

Singapore

UOB, which has the largest Asean exposure of the three local banks, is expecting a greater impact on its credit costs than initially thought of, as the global novel coronavirus outbreak has caused several countries to go into lockdown mode.

In response to queries from The Business Times on the impact on revenue and business sentiment from the Malaysia lockdown as well as whether further lockdowns may materialise in the rest of Asean, the local banks generally pointed to their strong capital buffers that can weather them through the uncertainties.