[Snapshot] Singapore banks in Aug 2015

A few things caught my eye in this article – [Banks steadfast in 5% loan growth forecast by Jamie Lee. (1-2 Aug 2015). The Business Times Weekend. Singapore.] The most direct is the Non-performing loan (NPL) ratio. Of the 3 entities, OCBC; DBS; and OUB, OCBC had the lowest at 0.7% in both Quarter 2, Financial Year 2015 (Q2, FY2015) and Q2, FY 2014 (the same amount). Somewhat coincidentally, the NPL for all three banks in the compared periods remained stagnant. [I presume here that the NPL refers to the total amount of loans.]

UOB, the tiniest in size, had trained its focus on the Foreign Direct Investment (FDI) advisory model. The CEO Mr Wee, mentioned that loans expansion overextend the balance sheets. Quite wise actually since at 1.2%, the bank consistently had the largest NPL volume. To add some detail, roughly S$1 billion of UOB’s FDI linked deposits originate from Chinese corporations. This accounted for 50% of the undertaking. This approach apparently began in 2010 and is part of a plan to gain unique advantages in China.

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