Singapore’s DBS Group reported that its non-performing loan rate rose from 0.9% to 1.4% due largely to stresses in the oil and gas support services sector.
For the full year, total allowances increased from S$743 million in 2015 to S$1.43 billion in 2016, representing a 93 percent jump. As a result, full year net profit was down five percent to S$4.24 billion.
The bank also reported its lowest quarterly profit since 2015. The bank’s net profit dropped nine percent to S$913 million for the fourth quarter ended December 31, compared to S$1.0 billion a year earlier, even as revenue gained five percent to S$2.78 billion.
DBS' earnings were eroded by total allowances which surged 87 percent to S$462 million, compared with S$247 million in the same period last year.