Sector Update - Banking (OVERWEIGHT, maintain)

Top Calls

Sector Update - Banking (OVERWEIGHT, maintain) - 2H17 outlook: Embarking on a new journey The banking sector's 1QCY17 earnings quarter concluded with banks within our universe reporting earnings mostly within expectations. There were no negative surprises and the outlook appears to be improving with banks' NIMs getting better, while credit costs have declined sharply from the peak in 2016. Key risk relates mainly to operating expenses. We look for 2017-19E earnings to grow by 10.6% yoy, 3.8% yoy and 4.1% yoy respectively. Our bigcap top picks are Public Bank, CIMB, and Maybank. Maintain OVERWEIGHT on the sector.

Other Calls

Sector Update � Plantation (NEUTRAL, maintain) - Inventory down to 1.56m MT

Morning News & Market Summary

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