ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Thai Airways is among the Asian airlines worst-hit by rising oil prices. (Photo by Kosaku Mimura)
The Big Story

2018's resurgent oil price: Asia's winners and losers

Commodity's comeback lifted Singapore banks, but hit Asian airlines

KENJI KAWASE, Nikkei Asian Review chief business news correspondent | Southeast Asia

HONG KONG -- While the tech sector is facing turbulence, Asian bank earnings are on an upswing. The standouts are Singaporean lenders -- DBS Group Holdings, United Overseas Bank (UOB) and Oversea-Chinese Banking Corp. (OCBC) -- all of which have recently recorded double-digit growth in net profits.

On top of the rising interest rates that have improved profits for many of their peers in the region, Singaporean banks enjoyed a special boost from the stronger oil market. Oil and gas drilling industries are a key sector for the city-state's economy, so local lenders' fortunes are closely tied to fluctuations in the market. During the oil slump that began in 2014, the banks faced substantial pressure on their loan books.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more