Singapore banks failed to deliver blockbuster 2Q10 results but earnings misses modest, while underlying fundamentals remain intact, says Nomura, according to Dow Jones.

Nomura notes continued pressure on net interest margin expected, but lack of positive surprises “against the backdrop of a robust macro environment was disappointing”.

Still, loan volumes “are coming through nicely”, while balance sheets remain pristine.

Research house says concerns of any double-dip recession should be tempered by Singapore banks’ resilient performance during last year’s credit crisis; “net interest margin is a key variable but loan yields are stable and the worst of the downdraft in falling securities and interbank yields appears to have already been absorbed. In sum, structural and valuations attraction are still broadly intact.”

Rates DBS (D05.SG) at Neutral with $15.30 target, UOB (U11.SG), OCBC (O39.SG) at Buy with respective $22.80, $11.80 targets.