FINANCIAL SERVICES | Staff Reporter, Singapore

Are Singapore's big banks out of the slump?

Higher interest rates and rising wealth to push double-digit profit growth.

The worst may be over for Singapore’s three biggest banks.

A stronger economy, higher interest rates and rising wealth is expected to boost income at DBS Group Holdings Ltd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. After several quarters hit by bad loans, a Bloomberg survey shows they’re poised to post double-digit profit growth for the three months ended Dec. 31. -- the first time all three will do so since 2014.

DBS, the largest lender in Southeast Asia, will report earnings Feb. 8, followed by OCBC and UOB on Feb. 14. 

The trio posted lower profit a year ago mainly because loans to the offshore energy services sector were going bad. DBS’s aggressive classification of nonperforming assets between July to September -- which led to the steepest drop in profit since the 2008 financial crisis -- means that’s clearing up now. 

This story is originally posted by Bloomberg. Read the full report here

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