by winston » Mon Aug 08, 2016 3:13 pm
DBS Bad Debt Doubles On Exposure To Oil & Gas Services Firm Swiber
By Shuli Ren
DBS Group (DBSM.Singapore/DBSDY) said its second-quarter profit fall 6% as provisions for bad debt more than doubled.
DBS’s net income fell to 1.05 billion Singaporean dollars ($780 million) from S$1.12 billion a year earlier, while provisions for bad loans rose to S$336 million from S$132 million.
Most of the incremental provision came from a net charge of S$150 million for DBS’s exposure to oil and gas services firm Swiber Holdings, the bank said.
Swiber, which provides construction services to oil and gas companies, filed a petition to liquidate its operations in July.
DBS’s exposure to Swiber has been in focus in the last two weeks with the bank saying on July 28 that it expected to recover only half of its S$700 million exposure. Shares of DBS have fallen for seven consecutive trading days.
Year-to-date, DBS has fallen 9.4%.
Source: Barron's Asia
It's all about "how much you made when you were right" & "how little you lost when you were wrong"