SG Banks: Citi has 1Q11 SG banks preview report. Expect robust results driven by strong loan growth to dominate the 1Q11 reporting season, offset by further slight NIM slippage. Add that business loan growth is broad-based and more capex related with pipelines looking firm, with strong mortgage drawdowns. Add that strong 1Q11 flash GDP data suggests healthy fee growth and a strong qtr for equity raising and likely stable wealth mgmt sales…..
Costs generally gap down in 1Q from seasonal 4Q highs and there appears to be no material asset quality concerns. Forecast 1Q11 Net Profit results of, DBS at $700m, UOB at $650m and OCBC at $550m. House has by calls on DBS and OCBC, but Hold on UOB.
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