DBS chief says O&G woes could still impact Singapore banks

Costs in O&G support service sector will persist with low oil prices.

CNBC reported that The latest report cards from Singapore three home-grown lenders reinforced expectations that the banking sector in one of the world's primary financial centers has seen its worst.

Yet, shares of all three banks were in the red on Friday after Southeast Asia's largest lender, DBS Group Holdings, rounded up the sector's earnings season with a warning that asset quality could deteriorate in the coming quarters due to continued weakness in the oil and gas segment.

"Asset quality pressures will continue and the risk of heightened credit costs in the oil and gas support services sector will persist with low oil prices," DBS CEO Piyush Gupta said at a media briefing.

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