Loan growth moderated in Feb 17 while gross impaired loan balance continued to inch up. However, CASA growth is recovering which should help underpin a milder NIM compression. Maintain MARKET WEIGHT on mixed sector operating dynamics. We like Maybank as a relatively defensive pre-GE14 pick, and Public Bank and BIMB for a more defensive 2H17 outlook as the implementation of MFRS9 draws closer. We recently downgraded RHBBank to a SELL on lingering O&G NPL concerns.

Source: UOB Kay Hian Research - 3 Apr 2017