Singapore banks signal growth slowdown

Higher provisions: An OCBC Bank branch in Kuala Lumpur. Weaker economic growth in Malaysia and Indonesia has prompted OCBC to step up some provisions for potential loan losses in the second quarter. — Bloomberg

SINGAPORE: Singapore lenders Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB) beat profit estimates, driven by recovery in core markets, but their sequential performance slowed sharply, underscoring challenges to maintain growth.

Prospects in Singapore’s banking sector have improved as a rebounding economy has boosted demand for mortgages and loans, while booming markets bolstered the wealth management business.