Industry loan growth rose slightly to 6% YoY in Oct 2024 (Sept 2024: 5.6% YoY) contributed by a higher growth in non-household loans. This is in line with our expectation of 5-6% growth for the sector in 2024. Leading indicator remained weak with a subdued growth in loan applications YoY while growth in loan approvals contracted by 3.2% YoY. Asset quality for banks remained stable with a sustained GIL ratio of 1.5%. Provisions for loan impairments trended lower MoM. Maintain NEUTRAL on the sector with limited ROE expansion on moderating earnings growth to 6.4% in 2025. Advocate selective approach with CIMB (TP: RM9.50/share) and Hong Leong Bank (TP: RM26.90/share) as top picks. Maintain UNDERWEIGHT on Maybank (TP: RM8.85/share) on stretched valuation with limited ROE uplift.