Chart of the day: Banks under threat delinquent ASEAN loans rise

Only DBS will be unscathed.

Delinquent Indonesian and Malaysian loans are on the rise for UOB and OCBC, as this chart from Credit Suisse shows.

OCBC’s Malaysia non-performing loans (NPLs) rose 10% on a quarter-on-quarter basis, while Indonesian NPLS surged by a staggering 139% quarter-on-quarter.

UOB’s overall NPLs rose 2.5% quarter-on-quarter, but the overall ratio remained stable. The group’s Malaysia NPLs increased was due to the pro-active classification of a collateralised performing account.

“UOB and OCBC’s performance were overshadowed by concerns over ASEAN asset quality. While [their] managements appear confident about the resilience of their books, investors are unlikely to give them the benefit of doubt so soon,” said Credit Suisse.

The report added that deteriorating macro conditions in ASEAN and a potentially delayed US rate lift-off could mean a more challenging second half.

“UOB and OCBC are likely to face some near-term pressure from weaker ASEAN NIMs. Key focus on ASEAN asset quality performance. Likely to determine earnings trajectory and investor sentiment over the next few quarters,” the report said.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia