DBS

DBS: RBS lowers target to $11.50 from $12.00, keeps Sell rating on expected continued pressure on its net interest income. Notes bank has embarked on an admirable restructuring of its operations in SG, HK, SE Asia, with mgt changes at HK operations. But low Sibor, increasing costs likely to weigh on earnings growth. Cuts FY11-12 earnings forecasts by 5.6%, 1.3% respectively, based on 20bp and 5bp cuts in Sibor assumptions over both yrs. Adds gross loan growth expected to moderate to "more sustainable" rates.