DBS Bank, south-east Asia’s largest bank by assets, said it would reimburse at least some investors who bought Lehman Brothers-linked derivatives notes that proved to be worthless after the collapse of the US investment bank.

The move by DBS is an attempt to limit damage to its brand image in the retail market. The Singapore-based bank is also dealing with the challenges of a loan portfolio skewed towards the city-state’s depressed property market and a sharply falling share price. DBS said it would compensate nearly a quarter of investors who bought a structured product which included exposure to Lehman.