(MAY MK/HOLD/RM9.46/Target: RM9.50)

Maybank’s 2Q17 results are marginally below our estimates as net credit cost remained elevated at 69bp vs our 52bp assumption. That said, we expect 2H17 to register slightly stronger loans growth traction due to dwindling lower lumpy corporate repayment, and stronger investment banking fee income flows. Maintain HOLD with an unchanged Gordon growth-derived target price of RM9.50 (1.35x 2017F P/B, 10.0% ROE). Entry level: RM9.00.

Source: UOB Kay Hian Research - 5 Sept 2017