The banks' asset quality continues to deteriorate.
Aggregate gross impaired loans ratio for banks under Maybank Kim Eng's coverage continued to rise from 1.97% in 4Q16 to 2.01% in 1Q17.
Banks that witnessed a sizeable qoq increase in gross impaired loans ratio were: Maybank (+12bp qoq), AMMB (+29bp qoq) and Affin (+30bp qoq).
"Maybank’s asset quality was impacted by a number of oil & gas loans in Singapore and business banking in Malaysia while AMMB and Affin were impacted by commercial real estate gross impaired loans. CIMB, RHBBank and BIMB experienced a slight improvement in GIL trends while the rest witnessed minor upticks," Maybank Kim Eng added.
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