Singapore banks are safe from systemic risks for now: analysts

Will the rebound in oil prices hold?

The city-state’s banks have long been plagued by non-performing loans brought about by the renminbi’s devaluation and the continuing plunge of crude oil prices.

However, now that both factors are recovering, UOB Kay Hian said systemic risks appear to have receded as a threat for Singapore’s financial institutions.

“Spreads for credit default swaps for Singapore banks have pulled back. We re-calibrate our NPL estimates from a bottom-up basis and restoe our 2016 net profit forecasts for DBS by 31% and for OCBC by 18%,” UOBKH said.

Meanwhile, while crude oil prices have rebounded by 58% in March, a sustained recovery remains elusive and prices have also currently dipped to US$36.90/bbl.

“The International Energy Agency (IEA) suggested crude oil prices could have “bottomed out” in its Oil Market Report dated 11 Mar 16. The biggest swing factor is non-OPEC production, which is starting to be affected by lower prices and past spending curbs,” UOB Kay Hian 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