Singapore banks' earnings growth feared to remain muted

But there may be slight NIM recovery.

According to DBS, earnings growth of the Singapore banks are expected to remain muted for this year.

While DBS analysts have priced in a slight recovery in NIM in 2014, they remain Neutral on the sector. 

Here's more from DBS:

Near term, as banks announce 2Q13 results (1-2 August), we would expect to see trading and investment gains decline with possible mark-to-market losses in the available-for-sale (AFS) book given the volatility on bond yields in June, but this would not have a direct impact on the P&L statement.

We would be cautious on Great Eastern's non-par fund portfolio as mark-to-market losses will have an impact on the P&L statement. Other than that, NIM should start to stabilise while loan growth should hover around the 3-4% (q-o-q) level.