Public Bank / Teh Hong Piow

[winston]

vested

To acquire 44.15% of LPI

BUY maintained Public Bank’s proposed acquisition of a 44.15% stake in LPI Capital (LPI) for MYR1.72b is mildly positive to the group, in our view, with a marginal 1.4% enhancement in FY25E earnings and a slight uplift in ROEs.

Positively, capital ratios would still be comfortable, post the acquisition.

Our forecasts are maintained, as is our BUY on Public Bank, with an unchanged TP of MYR5.40 (FY25E PBV of 1.7x; ROE: 12.7%).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/410126.pdf

[behappyalways]

It entered the top ten decliners list after the resumption of trading

复牌就进入十大下跌榜 大众伦平双双大跌 | 新闻报报看 11/10/2024

https://m.youtube.com/watch?v=0W0xWRWpeSs

[winston]

vested

Public Bank 2Q net profit slips, declares 10.5 sen dividend

By Syafiqah Salim

KUALA LUMPUR (Aug 26): Public Bank Bhd (KL:PBBANK), Malaysia’s third-largest bank by assets, said on Tuesday its net profit slipped in the second quarter from a year earlier, dragged by lower non-taxable income.

Net profit for the three months ended June 30, 2025 (2QFY2025) was RM1.76 billion, a 1% decline when compared to RM1.78 billion recorded for the same period last year.

Year-on-year, net interest income rose 5.1% while non-interest income climbed 15% during the quarter.

The bank declared a first interim dividend of 10.5 sen per share, payable on Sept 24. The entitlement date is Sept 12.

For the first half of FY2025, Public Bank’s net profit rose 2.05% to RM3.51 billion from RM3.44 a year earlier as net interest income grew by 4.1% year-on-year while non-interest income grew 17.5%.

Non-interest and non-financing income growth was further complemented by the newly acquired general insurance business undertaken by LPI Capital Bhd (KL:LPI).

As at end-June, the bank’s asset quality remained stable with the gross impaired loans ratio standing at 0.5% and credit costs at three basis points, well below the banking industry’s average.

Loan loss coverage stood at a prudent level of 153.9%, exceeding the 90.5% industry average.

Public Bank’s common equity Tier 1 capital — a measure of a bank’s capital strength based on the highest quality of regulatory capital — stood at 14%.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/768119

[winston]

vested

Public Bank (PBK MK) 2Q25: Growth Holds Firm Amid Higher Costs

Public Bank’s 2Q25 earnings came in marginally below expectations due to one-off legal costs.

Nonetheless, PPOP rose a commendable 7% yoy in 1H25.

We maintain our BUY rating and target price of RM5.25 (1.66x 2026F P/B, 12.6% ROE).

With its valuation near pandemic lows (-1.5SD below mean) and the sector’s strongest provision buffers, the bank remains well-positioned to weather macro headwinds.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

vested

Public Bank profit slips in 3Q on lower interest-based income after OPR cut

Net profit for the third quarter ended Sept 30, 2025 slipped 3.65% year-on-year on lower interest-based income.

Net profit fell to RM1.84 billion from RM1.91 billion a year earlier, after the 25-basis-point cut in the overnight policy rate (OPR) during the quarter.

Earnings per share eased to 9.54 sen from 9.85 sen in the same quarter last year.

No dividends were declared for the quarter.

Quarterly revenue rose 8.96% to RM7.42 billion from RM6.81 billion a year ago.

The group’s gross impaired loans ratio remained steady at 0.52%. Loan loss coverage was sustained at a prudent level of 154.8%.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/780739

[winston]

vested

1295 PBBANK (BUY)
Steady sequential growth

Public Bank’s 3Q25 net profit rose 4.7% QoQ, in tandem with stronger total income and lower loan loss provision.

Loan growth remained firm and asset quality well-guarded, with the GIL ratio holding steady.

However, sequential NIM compression weighed on profitability.

Given the results were broadly within expectations, our earnings estimates were kept.

Subsequently, we continue to see an upside-skewed risk-reward profile, underpinned by potential provision write-backs and historically low foreign shareholding levels (current: 23% vs Mar-11 low of 24% and Mar-18 high of 40%).

Maintain BUY call with GGM-TP of RM5.10, based on 1.46x FY26 P/B.

Source: HLIB

[winston]

not vested

Striving to stay on top in ROE

PBB said that it aimed to ensure its ROE will stay as the highest in the sector (12-13%). We are projecting ROE of 12.5% for PBB in FY26F.

We envisage better NIM for PBB in FY26F due to the V-shaped movement of NIM following the OPR cut in Jul 25 (down in 2H25 but recovering in 1H26F).

Reiterate Add on PBB, supported by further potential write-back of management overlay and improved NIM in FY26F.

TP: RM 5.90

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 47865A8462

[winston]

not vested

1295 PBBANK (BUY)
Unlocking the vault

PBBANK’s 1Q26 net profit came in at RM1.8bn (-6.6% QoQ, +0.4% YoY), accounting for 22.7%/23.3% of our/consensus full-year estimates.

QoQ, earnings softened on lower NII (-1.4%) and NOII (-5.0%), weighed by NIM compression and lower treasury gain, partly cushioned by stronger insurance income.

YoY, revenue grew modestly (+1.4%) but earnings were flat due to negative Jaws.

Asset quality remained solid with GIL at 0.51% and LLC at 147%.

Looking ahead, PBBANK reaffirmed a 60% dividend payout and announced a RM3.5bn special dividend programme over three years, with first potential payout in 4QFY26.

Maintain BUY with GGM-TP of RM5.50.

Source: HLIB

[winston]

vested

Public Bank
(BUY; TP: RM5.10)

Clearing the HK goodwill slate

PBBANK is expected to recognise a c.RM772.5m attributable goodwill impairment from its Hong Kong operations in FY26, translating into a c.4 sen/share hit to reported EPS and BVPS.

We view the impairment as largely an accounting reset, being non-cash and exceptional, and hence add it back to core earnings while carrying forward the lower BVPS.

Nonetheless, the underlying NIM pressure in Hong Kong warrants monitoring amid elevated funding costs and sticky asset repricing.

We leave our longer-term core earnings assumptions largely unchanged. All in, we maintain BUY call with revised GGM-TP of RM5.10 (from RM5.30).

Source: HLIB

[winston]

vested

CIMB Securities: Public Bank could earn RM521m if MS&AD acquires LPI Capital stake

By Navineshkumar Selvakumar

MS&AD has a foothold in Malaysia through MSIG Malaysia. A merger between MSIG and Lonpac would create one of the country’s largest general insurers, which CIMB Securities estimated would have a combined market share of about 16%, surpassing Allianz General Malaysia’s 15%.

CIMB Securities further expects Public Bank to post a broadly flat 3QFY2026 core net profit of RM1.85 billion in November, a marginal increase from previous year, supported by resilient non‑interest income from wealth management and foreign exchange.

Public Bank said in last week that its consolidated net assets and earnings per share could be reduced by four sen, following an expected HK$1.964 billion — or about RM1.1 billion — goodwill impairment at its Hong Kong‑listed subsidiary, Public Financial Holdings Ltd (PFHL).

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/822281