BANKING
 [%RWoH%] [%nCkj%] [%nDWa%] [%ozaR%] [%gfgW%] 
Research by RHB
Neutral

“Moderating Lending Indicators In May”

Top Picks (in order of preference): CIMB, AMMB, Hong Leong Bank, Alliance Bank Malaysia, and Public Bank. System loans growth saw a slight moderation to 5.8% YoY in May while leading loans growth indicator eased marginally on a YTD basis. On the other hand, YoY CASA growth ticked up while overall deposit growth was stable. Asset quality held up MoM. We remain NEUTRAL on the sector amid a backdrop of normalising sector earnings growth. We continue to prefer stocks with better growth prospects – earnings and/or dividends.

Analyst(s):
Wan Muhammad Ammar Affan
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David Chong CFA
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Nabil Thoo
[%NtBR%]

BANKING
 $KLSE-CIMB $KLSE-AMBANK $KLSE-HLBANK $KLSE-ABMB $KLSE-PBBANK 
Research by RHB
Neutral

“Moderating Lending Indicators In May”

Top Picks (in order of preference): CIMB, AMMB, Hong Leong Bank, Alliance Bank Malaysia, and Public Bank. System loans growth saw a slight moderation to 5.8% YoY in May while leading loans growth indicator eased marginally on a YTD basis. On the other hand, YoY CASA growth ticked up while overall deposit growth was stable. Asset quality held up MoM. We remain NEUTRAL on the sector amid a backdrop of normalising sector earnings growth. We continue to prefer stocks with better growth prospects – earnings and/or dividends.

Analyst(s):
Wan Muhammad Ammar Affan
ammaraffan@rhbgroup.com
David Chong CFA
david.chongvc@rhbgroup.com
Nabil Thoo
nabil.thoo@rhbgroup.com

$ABMB / 2488 (ALLIANCE BANK MALAYSIA BERHAD)

$CIMB / 1023 (CIMB GROUP HOLDINGS BERHAD)