Will Singapore's loan growth momentum disappoint for the rest of the year?

DBS projects a sluggish loan growth of 12% in 2012.

DBS is projecting 12% loan growth 2012. Taking the cue from 1Q12 results, banks guided for low-teens loan growth in 2012. It is no surprise that y-o-y loan growth momentum will continue to moderate for the rest of the year, says DBS.

Here's more from DBS:

We believe the Singapore banks remain well positioned to take advantage of extended credits given their liquidity position, similar to what we saw in the recent past when they benefited from the pull-back of credits by the European banks. This would also provide Singapore banks an opportunity to price up loan spreads in view of a tighter supply market, hinting a possible upside for NIM.