J.P. Morgan ASEAN FTM 16 Jul 26 Banks 2Q26 preview: Profit booking qtr in the making; ID Telcos: 2Q preview/update post spectrum auction; PH Power: EDC attracts $7bn EV bid; SG REITs 2Q preview; SGX model update

Research evidence excerpt

J.P. Morgan ASEAN FTM 16 Jul 26 Banks 2Q26 preview: Profit booking qtr in the making; ID Telcos: 2Q preview/update post spectrum auction; PH Power: EDC attracts $7bn EV bid; SG REITs 2Q preview; SGX model update

Asia Pacific Equity Research

ASEAN First to Market 16 July 2026

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Asean Financials (Harsh Wardhan Modi/Daniel Andrew Tan, CFA), Thailand

A profit booking quarter in the making; 2Q26 preview

Asean banks, led by Singapore and Thailand, have re-rated on expectations of positive revisions and a lack of immediate

negatives. This is setting up the sector for a degree of profit booking and rotation. NII guidance should move up for SG banks

on the back of rates and loan growth, while NNMg should be robust. Flows should help treasury and fees. These are known

and likely discounted. Higher costs (delivery and guidance) as well as NPL formation and credit costs are possible drivers of

weakness. NIM, non-II and AQ for large TH banks are key risks. For PH banks, loan growth is holding despite weak GDP (3.1%

2Q26E GDPg). Higher fuel prices and rates (policy rate up 50bps from 1Q low) should help PPoP (62% CASA for Big 3) but is a

risk for AQ, especially for BPI. In VN, tight liquidity remains the key challenge, where VCB stands out on a relative basis. In

Indonesia, we expect q/q NIM compression to be sustained in 2Q. Further, banks may guide for CoF led q/q NIM decline in 3Q

as well, since select special deposits have cost as much as 8% over the last few weeks. AQ concerns remain. We recommend

trimming UOB, OCBC, KTB, BMRI, BRI, CIMB and BPI into numbers, with relative resilience at SGX, PBK, AMMB, RHB,

HLBK, Bursa, BBL, KTC and VCB.

Indonesia Telcos (Ranjan Sharma, CFA), Indonesia

2Q26 earnings preview & model update post spectrum auction; reiterate OW ISAT