SG Banks earnings preview: Citi has earnings preview for 2Q11 on SG Banks. Expected results dates are DBS 28 Jul, OCBC 3 Aug, UOB 12 Aug. Note that 2Q11 loan surge looks set to trump the strong data of the 1Q results season. Further NIM slippage expected but slight, so net interest income may improve to an impressive 3%qoq…..
Add that Business loan growth is broad-based, with more capex-related pipelines remaining firm. Noninterest income likely weak due to falling out of exceptional IB and loan fees enjoyed in 1Q. Costs generally edging up on headcount additions and wage increments. 2Q11 core profit forecasts: DBS $731m (-9%qoq), OCBC $547m (-8%qoq), UOB $615m (+0.6%qoq). Estimates slightly above 2011E consensus on DBS, UOB, and in line for OCBC. Recommend Buy DBS, OCBC and Hold UOB.
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