DBS

DBS: Citi note that ater DBS' analyst briefing on its 4Q12 results, the readthrough for the sector is for single-digit loan growth and pressure on loan prices, which may continue into 2013. Softer Singapore mortgages may take around 1-1.5 ppt of 2013 banks' loan growth. It would be logical for both banks to shorten the duration of their securities books in anticipation of higher long bond yields, which could add to 4Q NIM pressure, but will have to see if other non-interest income is boosted by divestment gains from AFS securities. House expects asset quality is likely benign and capital positions healthy. Expects OCBC saw a pick up in China trade finance demand, with a potential windfall profit boost from its insurance non-par fund. It expects UOBwill likely continue to focus on double-digit fee growth in 2013. Citigroup doesn't rate DBS due to its involvement in the Bank Danamon deal.