RHB Equity 360° - 26 July 2010 (Banks, MISC; Technical: MMC, Scomi Marine)

Sector Update - We have looked at the recent experience of the Singaporean banks to serve as a rough guide on the potential impact ahead of FRS139 on the local banks. - The experience there suggest that the current loan loss model is procyclical, which would help lend support to our view that credit cost should remain relatively benign if economic conditions hold up.