SG Banks

SG Banks: IIFL has banks report. Note of step up in growth and profitability. Estimate that growth, credit quality, and profitability of Spore banks will be significantly better in the yrs ahead, vs last decade or the past 5yrs. Expect SG banks to deliver 16% NP CAGR, and ROEs will rise back to 2006-07 peak levels, when Spore banks traded at 1.6-1.8x forward P/B vs current 1.1-1.4x 2011 P/B. Maintain positive stance, with DBS & OCBC as preferred picks.