Singapore, Malaysia and Philippines banks have best asset quality

Moody's expects the GDP of most Asean economies and India will contract in 2020 and gradually recover in 2021. The relaxation of lockdowns and resumption of economic activity will be key factors supporting the recovery.

KUALA LUMPUR: Banks in Singapore, Malaysia and the Philippines have the best asset quality with non-performing loans (NPLs) below 2% despite the challenging economic and credit conditions stemming from the Covid-19.

Moody's Investors Service says in a new report on Monday the pandemic would weigh on Asean and Indian banks' asset quality and profitability.