0720 GMT [Dow Jones] Singapore banks saw weak loan growth in July, but the picture should improve later in the year, says JPMorgan. "While loan growth should remain lackluster for the next couple of months, we expect growth to surprise significantly in 4Q09 as banks start moving up the risk curve in search of yield amidst high system liquidity." Notes Singapore banking industry loans declined 0.1% on-month in July, with business loans down 1.1% on-month, led by decline in construction lending, but personal loans rose on-month as housing loans picked up. Tips DBS (D05.SG) and UOB (U11.SG) to lead industry loan growth going forward. Rates both stocks Overweight with S$16.50 target price for DBS, S$19.00 target for UOB; rates OCBC Neutral with S$8.50 target. DBS off 0.6% at S$12.64, UOB down 1.1% at S$16.82, OCBC down 1.3% at S$7.66 vs STI down 0.9%. (KIG)