SG Banks

SG Banks: Credit Suisse has sector report for 2011 Outlook. Cite challenging year for growth among banks, highlighting 3 themes for 2011, notably, Growth moderation, where EPS growth in 2011 for Spore banks could slow to 1-7% from 20-30% in 2010 and tip that SG may be the only banking market in Asia where net interest margins remain under pressure; and finally,
SG banks await more clarity on Basel 3, but note that balance sheet remains comfortable ….

Highlight that SG bank valuations are attractive but not compelling and banks lack catalysts. Tips OCBC as top pick for 2011 due to grp’s niche wealth management strategy and aggressive strategy. Likes DBS’s new CEO’s strategy, but cite that strategy will take 12-18 mths for results, while DBS will gain the most when the SIBOR starts rising in 2012.