Bulletin: DBS Bank Ends 2020 With Signs Of A Business Rebound

SINGAPORE (S&P Global Ratings) Feb. 10, 2021--S&P Global Ratings said today that DBS Bank Ltd. is showing some good signs of a rebound in business after a challenging 2020. The Singapore-based bank's loan growth and business revenue regained momentum towards the end of last year. While strong economic headwinds and a sharp credit downturn triggered by COVID-19 are likely to persist for the next six to 12 months, we believe DBS (AA-/Stable/A-1+) has enough financial resilience. These will be supported by the bank's leadership in Singapore, diversified regional presence, sound capital buffer and risk profile, as well as strong deposit funding base. DBS' performance in 2020 was broadly in line with our expectations. Net interest margins contracted by a deep

...February 10, 2021 SINGAPORE (S&P Global Ratings) Feb. 10, 2021--S&P Global Ratings said today that DBS Bank Ltd. is showing some good signs of a rebound in business after a challenging 2020. The Singapore-based bank's loan growth and business revenue regained momentum towards the end of last year. While strong economic headwinds and a sharp credit downturn triggered by COVID-19 are likely to persist for the next six to 12 months, we believe DBS (##-/Stable/A-1+) has enough financial resilience. These will be supported by the bank's leadership in Singapore, diversified regional presence, sound capital buffer and risk profile, as well as strong deposit funding base. DBS' performance in 2020 was broadly in line with our expectations. Net interest margins contracted by a deep 27 basis points (bps) owing to benchmark interest rates plunging to historical lows. Provisioning costs increased by more than 300% to Singapore dollar (S$) 3.07 billion from S$703 million one year ago on COVID-19-related...

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