DBS (D05.SG) +1.9% at 2-month high of S$14.80 as investors continue to plow into bank after its underperformance vs OCBC (O39.SG), UOB (U11.SG), according to Dow Jones.

“Interest in DBS is finally coming back. The other two banks, especially UOB, have had a fairly good run, so people are now turning to the laggard,” says a dealer at foreign brokerage.

DBS +6.1% since beginning July vs OCBC +1.0%, UOB +1.1% over same period, but down 5.7% year to date vs OCBC down 1.5%, UOB +0.7%.

Whether renewed interest pays off will hinge on DBS’ 2Q10 results, due July 30.

“We believe the biggest risk to our 2Q FY10 forecasts would be higher-than-expected allowances. A second risk would be lower-than-expected net-interest income given that Sibor remained subdued for the quarter,” says Daiwa, which has Hold call with $14.30 target; tips net profit of $582 million, +9.4% on quarter, +5.5% on year.

Resistance at $15.00.