Trump tariffs cloud ASEAN banks' profit prospects

Singapore lenders scrutinize interest rate impact as loan risks also loom

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Southeast Asia's three largest banks, DBS Group Holdings, Oversea-Chinese Banking Corp. and United Overseas Bank, all logged record profits last year. (Photos by Reuters)

DYLAN LOH

SINGAPORE -- Singapore's big lenders and regional peers are bracing for a volatile cocktail of risks and rewards as U.S. President Donald Trump's global tariff campaign clouds their earnings prospects.

While a potentially protracted trade war sparked by the new U.S. president's protectionist policies could fuel inflation, keeping interest rates higher for longer, supporting bank earnings, the resulting stress on borrowers also adds risk to banks' loan books.

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