Which Malaysian banks saw a significant increase in gross impaired loans ratio?

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.