DBS (D05.SG) up 0.1% at $14.52 cum dividend and despite huge 2Q10 $1.02 billion goodwill impairment charge taken for HK operations, which led to $300 million net loss for June quarter.

Shares off early high $14.70 but in line with pullback in other two banks, STI, says Dow Jones.

“The impairment charge is non cash and does not affect (DBS’) capital position,” says Royal Bank of Scotland, which has $12.00 target, “ex-impairment results were stronger than expected, but we reiterate Sell, as we don’t think things will get easier with rates remaining very low.”

Excluding charge, 2Q10 net profit +30% on year, +35% on quarter at $718 million vs $572 million profit tipped in Dow Jones poll. Results boosted by trading, investment gains, lower allowances for loans.

Support at last week’s low of $14.24.