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Hot stock: DBS tumbles on CEO's warning of more provisions for its O&G portfolio
SHARES of DBS Group tumbled more than 2 per cent on Friday after its chief executive officer Piyush Gupta warned that provisions for its oil and gas portfolio could be higher than previous guidance.
DBS hit S$21.90, before hovering around S$21.57, down 51 Singapore cents, or 2.31 per cent, by 02:59pm. The counter eventually closed 59 Singapore cents - or 2.7 per cent - lower at S$21.49, with nearly 8.6 million shares changing hands.
Specific provisions for its oil and gas portfolio could be S$300 million next year.
Excluding exposure on Swiber, DBS has a S$7 billion exposure to the oil and gas support services. Of this, S$1.6 billion are to state-owned and government-linked shipyards, while the remaining S$5.4 billion are to the smaller players.
Early Friday, the Singapore bank reported net profit rose 8 per cent from a year ago to S$1.13 billion for its fiscal second quarter ended June 30, 2017.