Chart of the Day: Check out rising NPL ratios of Singapore banks

DBS' saw the biggest NPL increase at 19% QoQ.

Singapore banks has been enduring asset quality deterioration with the weakness coming from the Oil & Gas sector. According to Goldman Sachs, DBS’ NPL increased the most at 19% qoq, mainly from one large O&G company and another steel-related Indian company, followed by UOB and OCBC. 

"Banks still expect NPLs to continue to come through for the next few quarters mostly from the O&G space with NPLs elsewhere remaining manageable," it said.

The firm added, "Credit cost was high in 3Q on the back of rising NPLs and we expect provisions to stay elevated going forward as we anticipate NPLs to rise further. Banks’ loan loss coverage, as per our calculation, has fallen 10pp on average in 3Q to 103% with DBS down most to 93%, from 108% in 2Q."