DBS growth will dip then recover: OCBC

Earnings seen to expand by a modest 1% in 2012 before bouncing back to 6.6% in 2013.

The quivering of global markets will hit DBS Group Holdings and it isn't helping that loans growth is set on a nosedive trajectory this year, according to OCBC.

Should it get past the current bumps, a growth rebound should be in the cards.

Here's more from OCBC:

Despite the protracted uncertainty and volatility in the market, DBS has delivered record earnings in FY11. The growth in the past 2-3 years was due to several reasons including its strength in SME business and increased focus on its Wealth operations. These have shown results and total income from Wealth grew 23% in 2011 to S$620m.

In addition, it is also seeing good traction from its operations in the region. Growth from these markets (Indonesia, Taiwan, India and China) ranged from 20-62% YoY in 2011. As the global environment remains challenging, we expect growth to moderate in 2012. Loans growth will also come off from the stellar performance in 2011 to low double-digit growth. We are expecting a modest 1% earnings growth in 2012, before a recovery in 2013 will bring growth rate to 6.6%.