The O&G nightmare is lifting from Singapore’s banking sector

SINGAPORE (Nov 30): UOB Kay Hian is keeping its “overweight” call on the Singapore banking sector while maintaining its “buy” recommendations on DBS Group and Oversea-Chinese Banking Corp (OCBC) at target prices of $20.15 and $10.45 respectively.

While United Overseas Bank (UOB) is unrated, the research house has given it a target price of $19.88 and highlights the bank as “more resilient and well-positioned to weather the current credit cycle” given it has the least exposure to the beleaguered O&G sector.  

“We believe Singapore banks have already recognised the larger troubled accounts from the oil & gas (O&G) sector as non-performing loans (NPLs),” shares analyst Jonathan Koh in a Monday report.

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