Singapore Banks' 3Q Net Pfts May Drop Sharply

0217 GMT [Dow Jones] Credit Suisse keeps Singapore banks at Overweight, but warns 3Q07 net profits may drop sharply if they decide to "kitchen sink" mark-to-market provisions on CDOs in P&L. Says profit declines could be as much as 40% on-quarter, 25% on-year. Says if banks do "kitchen sink," market should take it positively as with U.S. banks; notes all three will still show decent profits and there should be no dent to Tier 1 capitalizations. Says operationally, loan growth momentum likely continued, but DBS (D05.SG), OCBC (O39.SG) margins may have softened a little on Prime-HIBOR, lower SIBOR. Says also conservative on fee and treasury income, but notes capital market activity not hit so badly. Sets DBS target price at S$28, OCBC target at S$10.80, UOB (U11.SG) target at S$28. Currently, DBS flat at S$22.40, UOB down 0.9% at S$22.50, OCBC down 1.1% at S$9.25. (LES)