DBS faces credit cost spike on Autobahn exposure

Singapore largest bank holds an estimated S$102.6m in loan exposure to the car leasing firm

DBS’ exposure to the Autobahn car leasing company may lead to higher credit costs, said CGS International.

Singapore’s biggest bank by assets is estimated to hold about S$102.6m in loan exposure to Autobahn Rent A Car, according to local reports last November 2025. The car leasing company is reported to have over S$370m owed to creditors.

CGS International estimates a one-off recognition of its loans exposure to Autobahn would translate to credit costs rising by about 10 basis points (bp) in Q4 2025.

“Nevertheless, the withdrawal of Autobahn’s appeal for creditor protection means that creditors’ claims or writs of seizure and sale of Autobahn’s fleet of vehicles may proceed, potentially allowing DBS to recoup part of its exposure to Autobahn,” CGS International wrote in a report published on 16 January 2026.

A recent S$2.5b writeback could also act as a buffer to any potential uptick in credit costs, it added.

DBS is expected to log a 5 bp quarter-on-quarter (QoQ) decline in NIM in Q4, following a decline in the Singapore Overnight Rate Average (SORA) during the period.

The bank should see its wealth management assets under management (AUM) rise 18% year-on-year (YoY) in Q4 2025, CGS International said. This puts it in the running for a mid-teen percent growth in wealth management fees for FY2026.