Loan growth remained fairly stable while gross impaired loans deteriorated yoy. The fairly mixed sector operating dynamics prompt us to retain our MARKET WEIGHT call. As industry gross impaired loans continue to edge upwards and with the eventual need to bump up provisions as the implementation of MFRS9 draws closer, we are beginning to turn more defensive towards 2H17. In this respect, we like Public Bank, Hong Leong Bank and BIMB for their more defensive outlooks.

Source: UOB Kay Hian Research - 1 Jun 2017