Current valuations of Singapore bank stocks attractive but catalysts absent with net interest margins expected to remain under pressure next year as Sibor continues to linger near historical lows, says Credit Suisse.

Expects Singapore’s slower economic growth in 2011 to moderate loan expansion, although fee income could show “decent” performance on back of improved capital market conditions, but operating costs should remain under pressure as banks back in investment mode.

“Singapore banks look unexciting near-term — valuations are attractive but not compelling, and they lack catalysts.”

Rates OCBC (O39.SG) as top pick for 2011, with Outperform call, $11.60 target, based on bank’s niche wealth management strategy, most aggressive growth plans in sector. Rates DBS (D05.SG), UOB (U11.SG) at Neutral with $16.00, $22.50 targets. DBS off 0.1% at $14.04, OCBC off 1.2% at $9.86, UOB off 1.4% at $18.24.