Local banks sees rise in bad home loans

in today’s news, it was reported that Singaporean banks are piling up on their share of bad loans. This is especially so due to the sliding housing prices in the current lull market. UOB has increased its share of non-performing loans to S$502M in the past 2 consecutive quarters, due to borrowers investing in a particular high-end project (S$166M). According to UOB, this non performing loan book was well collateralised and has minimal impairment charge. Acccording to Maybank Kim Eng report, the project is Turquoise in Sentosa.

OCBC also saw its non-performing loan rose in the high-end sector. It rose 20% from S$227M from a year ago.

DBS’s non performing loans sector is about 0.2% of its S$110M  loan portfolio.

According to recent property news, it seems like that the Singapore property prices looks to face downward pressure. According to DPM Tharman’s recent comments “…meaningful reversal after each upswing …” may indicate more drops before it starts to rise.

 

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