Public Bank nets RM639m profit in Q3
By Chong Pooi Koon
Published: 2009/10/16
Public Bank Bhd (1295), the country's third largest bank, reported a 3.7 per cent higher third-quarter net profit as it earned more from loans, despite a weak economy and even as it has set aside more money to cover potential bad debts.
Net profit for the three months to September 30 2009 came in at RM639 million, although revenue fell 12.7 per cent to RM2.4 billion.
The bank has put aside RM176.4 million of allowances for loan losses, 65 per cent more compared to the same time last year.
Managing director and chief executive officer Tan Sri Tay Ah Lek said Public Bank is on track to achieve a 14-15 per cent loans growth target this year, driven by demand for loans to small businesses, mortgages and car loans.
Public Bank is expected to maintain the earnings momentum and continue to record satisfactory performance for the rest of the year, he said in a statement yesterday.
"As the global recession begins to recede and with recovery on the horizon, the outlook for the banking industry is expected to improve. However, margins continue to be under pressure due to continued intense competition," he added.
Despite a difficult economy this year, Public Bank's net profit has expanded consistently in the first nine months this year.
Net profit in the second quarter grew 3.6 per cent to RM611 million from RM589 million in the first quarter, and improved further by 4.6 per cent in the latest quarter.
Loans grew by 14.3 per cent on an annualised basis, while deposits expanded by 19.5 per cent. This compares with the industry's 6.8 per cent growth for loans and 6.3 per cent for deposits.
Public Bank's non-performing loans ratio stayed below 1 per cent, the lowest among Malaysian banks.
OSK Research analyst Keith Wee said the lender's performance was largely in line with his expectations. He maintains a "buy" call on Public Bank shares with a RM11.80 target price.
"The stock is currently trading at an undemanding 13 times its fiscal 2010 price earnings multiple, against its historical mid-cycle average valuation of 14.8 times," Wee wrote in a note after the results announcement.
The stock closed flat at RM10.62 on Bursa Malaysia yesterday.
http://www.btimes.com.my/Current_News/BTIMES/articles/dougan/Article/index_html
Showing posts with label Pbb. Show all posts
Showing posts with label Pbb. Show all posts
Friday 16 October 2009
Thursday 15 October 2009
PBB 15.10.2009
Valuation:
http://spreadsheets.google.com/pub?key=tE7ISnWkuQCAPx-5JJTDp6g&output=html
Published: Thursday October 15, 2009 MYT 1:59:00 PM
Public Bank net profit higher by 3.7%
KUALA LUMPUR: Public Bank Bhd posted a 3.7% rise in net profit for its third quarter ended Sept 30, at RM639.04mil compared with RM616.34mil recorded a year ago on higher loans growth and deposits.
Revenue for the period was RM2.438 billion, compared with the RM2.79 billion a year ago. Earnings per share were 18.52 sen compared with 18.37 sen.
For the nine-months ended Sept 30, 2009, net profit declined to RM1.839 billion compared with RM1.927 billion. Revenue slipped to RM7.22 billion from RM7.94 billion.
Public Bank said excluding the one-off goodwill income from ING in 2008, the group’s underlying operating net profit for the nine-months increased by 3% from a year ago.
http://biz.thestar.com.my/news/story.asp?file=/2009/10/15/business/20091015135755&sec=business
Sunday 11 October 2009
Money flowing intotop three banks
Money flowing intotop three banks
Tags: CIMB Group Holdings Bhd | Malayan Banking Bhd | Public Bank Bhd | Top three banks
Written by Joyce Goh
Tuesday, 06 October 2009 10:32
PETALING JAYA: Investors have been seizing opportunities to pick up banking stocks on the back of their weaker share prices last week. For the week ended Oct 2, investors purchased some RM38.96 million worth of stock in Bloomberg’s top 20 buying-on-weakness, a list of which the top three banks in the country emerged on the top three spots.
The second largest bank in terms of assets — CIMB Group Holdings Bhd — saw the highest inflow of funds in terms of value, following a 0.2% decline in its share price week-on-week. The decline caused a two sen drop in share price to RM11.14 but investors acquired RM6.66 million worth of the banking group’s stock.
Meanwhile, PUBLIC BANK BHD []’s share price fell eight sen in a week closing at RM10.18 last Friday. This change of 0.8% did not deter investors who acquired RM6.65 million worth of the stock in the country’s third largest bank.
The largest bank in the country — MALAYAN BANKING BHD [] (Maybank) — saw an inflow of RM5.71 million into the stock following its share price falling 0.6% week-on-week. The stock ended at RM6.64 last Friday, down four sen from a week before.
When asked on this, banking analysts believe this trend could be driven by two factors — investors’ rising confidence in the sector as well as the fact that the top three banks make up quite a bit of the FBM KUALA LUMPUR COMPOSITE INDEX [] weightage.
“The top three banks in Bursa make up 30% in terms of the weightage in FBMKLCI 30. Therefore, when there is share price weakness, there’ll be funds that will come in and support it. So it (money flowing into the stocks due to share price weakness) could be because of that,” Maybank Investment Bank Research’s senior analyst Wong Chew Hann told The Edge Financial Daily.
“It could also be because investors are expecting improved earnings to flow into banks as the economy slowly mends itself. On top of that, their asset quality is intact. Overall, our banks are on steady ground,” she said.
Wong said banks are expected to see loans growth this year, albeit a slower growth compared to last year. “We are looking at 6% loans growth for the sector. Last year was 12.9%. We also think that 2010 will not be as good as 2008... looking at single digits growth. Our house view is that the economy will rebound next year but we will not be seeing that 5% to 7% GDP growth,” she noted.
CIMB ended yesterday at its 52-week high of RM11.50, up 36 sen from its close last Friday while Maybank added one sen for the same period to RM6.65.
Public Bank ended Monday unchanged from its close last Friday of RM10.18.
This article appeared in The Edge Financial Daily, October 6, 2009.
Tags: CIMB Group Holdings Bhd | Malayan Banking Bhd | Public Bank Bhd | Top three banks
Written by Joyce Goh
Tuesday, 06 October 2009 10:32
PETALING JAYA: Investors have been seizing opportunities to pick up banking stocks on the back of their weaker share prices last week. For the week ended Oct 2, investors purchased some RM38.96 million worth of stock in Bloomberg’s top 20 buying-on-weakness, a list of which the top three banks in the country emerged on the top three spots.
The second largest bank in terms of assets — CIMB Group Holdings Bhd — saw the highest inflow of funds in terms of value, following a 0.2% decline in its share price week-on-week. The decline caused a two sen drop in share price to RM11.14 but investors acquired RM6.66 million worth of the banking group’s stock.
Meanwhile, PUBLIC BANK BHD []’s share price fell eight sen in a week closing at RM10.18 last Friday. This change of 0.8% did not deter investors who acquired RM6.65 million worth of the stock in the country’s third largest bank.
The largest bank in the country — MALAYAN BANKING BHD [] (Maybank) — saw an inflow of RM5.71 million into the stock following its share price falling 0.6% week-on-week. The stock ended at RM6.64 last Friday, down four sen from a week before.
When asked on this, banking analysts believe this trend could be driven by two factors — investors’ rising confidence in the sector as well as the fact that the top three banks make up quite a bit of the FBM KUALA LUMPUR COMPOSITE INDEX [] weightage.
“The top three banks in Bursa make up 30% in terms of the weightage in FBMKLCI 30. Therefore, when there is share price weakness, there’ll be funds that will come in and support it. So it (money flowing into the stocks due to share price weakness) could be because of that,” Maybank Investment Bank Research’s senior analyst Wong Chew Hann told The Edge Financial Daily.
“It could also be because investors are expecting improved earnings to flow into banks as the economy slowly mends itself. On top of that, their asset quality is intact. Overall, our banks are on steady ground,” she said.
Wong said banks are expected to see loans growth this year, albeit a slower growth compared to last year. “We are looking at 6% loans growth for the sector. Last year was 12.9%. We also think that 2010 will not be as good as 2008... looking at single digits growth. Our house view is that the economy will rebound next year but we will not be seeing that 5% to 7% GDP growth,” she noted.
CIMB ended yesterday at its 52-week high of RM11.50, up 36 sen from its close last Friday while Maybank added one sen for the same period to RM6.65.
Public Bank ended Monday unchanged from its close last Friday of RM10.18.
This article appeared in The Edge Financial Daily, October 6, 2009.
Public Bank an outperform, says Inter-Pacific Research
Public Bank an outperform, says Inter-Pacific Research
Tags: PBB
Written by Surin Murugiah
Friday, 09 October 2009 08:43
Inter-Pacific Research Sdn Bhd is recommending PUBLIC BANK BHD [] (PBB) as an outperform at RM10.40 with target price RM11.80, and said the bank's loans growth of 15% for FY09 seemed achievable.
The research house said on the back of high loans approval, up 17% year-on-year (y-o-y) to RM24.5 billion in 1HFY09, it expects PBB's full year loans to expand by 15% y-o-y from 19.2% y-o-y in FY08.
It said non-performing loans (NPLs) were expected to creep up slightly in 2HFY09 from loan defaults as PBB's organic loans that accounts for two-third of their total loans would be affected from the first two quarters of 2009 real gross domestic product (GDP) contraction.
"We project gross and net NPLs to be at 1.02% and 0.9% respectively in FY09, from 1.01% and 0.86% respectively in FY08," it said.
Inter-Pacific Research said PBB's net interest margin (NIM) would be compressed by 20-25 basis points in FY09 from the after effects of 150 basis points cut in Overnight Policy Rate (OPR) to 2% by Bank Negara.
But the drop in margins was compensated from the increase in hire purchase rates and corporate loans in March 2009, it said.
On the bank earnings, it said bottomline was projected to shrink by 13.1% in FY09 following compressed NIM and higher interest cost from raising RM1 billion of Non-Innovative Tier 1 Capital.
"But the bottomline should rebound by 9.5% in FY10 from stronger loans growth, lower credit charge off rate and higher contribution from non-interest income," it said.
Tags: PBB
Written by Surin Murugiah
Friday, 09 October 2009 08:43
Inter-Pacific Research Sdn Bhd is recommending PUBLIC BANK BHD [] (PBB) as an outperform at RM10.40 with target price RM11.80, and said the bank's loans growth of 15% for FY09 seemed achievable.
The research house said on the back of high loans approval, up 17% year-on-year (y-o-y) to RM24.5 billion in 1HFY09, it expects PBB's full year loans to expand by 15% y-o-y from 19.2% y-o-y in FY08.
It said non-performing loans (NPLs) were expected to creep up slightly in 2HFY09 from loan defaults as PBB's organic loans that accounts for two-third of their total loans would be affected from the first two quarters of 2009 real gross domestic product (GDP) contraction.
"We project gross and net NPLs to be at 1.02% and 0.9% respectively in FY09, from 1.01% and 0.86% respectively in FY08," it said.
Inter-Pacific Research said PBB's net interest margin (NIM) would be compressed by 20-25 basis points in FY09 from the after effects of 150 basis points cut in Overnight Policy Rate (OPR) to 2% by Bank Negara.
But the drop in margins was compensated from the increase in hire purchase rates and corporate loans in March 2009, it said.
On the bank earnings, it said bottomline was projected to shrink by 13.1% in FY09 following compressed NIM and higher interest cost from raising RM1 billion of Non-Innovative Tier 1 Capital.
"But the bottomline should rebound by 9.5% in FY10 from stronger loans growth, lower credit charge off rate and higher contribution from non-interest income," it said.
Monday 20 July 2009
Public Bank records RM1.54b pre-tax profit in H1
Monday July 20 2009.
KUALA LUMPUR, July 20 — Public Bank Bhd posted a pre-tax profit of RM1.564 billion in the first half of the year year ended June 30, 2009 compared with RM1.76 billion in the same period last year.
Revenue declined to RM4.78 billion from RM5.15 billion previously.
In a statement today, the bank said net interest and financing income grew by nine per cent to RM180 million, driven by its expanding loan and deposits businesses and sustained strong assets.
It said total assets crossed the RM200 billion mark for the first time, standing at RM204.0 billion as at end-June 2009.
Total loans and advances grew by RM8.7 billion, or 7.2 per cent, in the first six months of 2009, to RM129.4 billion, significantly above the banking industry’s 1.2 per cent for the first five months of 2009, it said.
Public Bank said core customer deposits grew by 11.5 per cent in the first six months of 2009 to RM125.3 billion compared with the industry’s 2.9 per cent during the first five months of 2009.
As at the end-May 2009, Public Bank’s domestic market share of total loans and core customer deposits rose to 15.5 per cent and 15.2 per cent respectively compared with 14.8 per cent and 14.7 per cent respectively as at Dec 31, 2008, it said.
It said the group's net non-performing loan ratio was below one per cent as at end-June 2009, significantly lower than the industry’s 2.2 per cent in May 2009.
The group’s loan loss coverage of 173 per cent was about twice the banking industry’s ratio of 87 per cent, and continued to be the highest and most prudent in the Malaysian banking industry, it said.
On outlook, it said, despite the slowing economy, the banking industry in Malaysia remained resilient, supported by its strong capitalisation, stable asset quality and improved risk management practices.
Hence, it said, the group would continue to pursue its strategy of strong organic business growth, as well as maintain a high quality loan portfolio and improved productivity.
"Barring unforeseen circumstances, the group is expected to continue to record satisfactory performance for the rest of 2009," it said. — Bernama
KUALA LUMPUR, July 20 — Public Bank Bhd posted a pre-tax profit of RM1.564 billion in the first half of the year year ended June 30, 2009 compared with RM1.76 billion in the same period last year.
Revenue declined to RM4.78 billion from RM5.15 billion previously.
In a statement today, the bank said net interest and financing income grew by nine per cent to RM180 million, driven by its expanding loan and deposits businesses and sustained strong assets.
It said total assets crossed the RM200 billion mark for the first time, standing at RM204.0 billion as at end-June 2009.
Total loans and advances grew by RM8.7 billion, or 7.2 per cent, in the first six months of 2009, to RM129.4 billion, significantly above the banking industry’s 1.2 per cent for the first five months of 2009, it said.
Public Bank said core customer deposits grew by 11.5 per cent in the first six months of 2009 to RM125.3 billion compared with the industry’s 2.9 per cent during the first five months of 2009.
As at the end-May 2009, Public Bank’s domestic market share of total loans and core customer deposits rose to 15.5 per cent and 15.2 per cent respectively compared with 14.8 per cent and 14.7 per cent respectively as at Dec 31, 2008, it said.
It said the group's net non-performing loan ratio was below one per cent as at end-June 2009, significantly lower than the industry’s 2.2 per cent in May 2009.
The group’s loan loss coverage of 173 per cent was about twice the banking industry’s ratio of 87 per cent, and continued to be the highest and most prudent in the Malaysian banking industry, it said.
On outlook, it said, despite the slowing economy, the banking industry in Malaysia remained resilient, supported by its strong capitalisation, stable asset quality and improved risk management practices.
Hence, it said, the group would continue to pursue its strategy of strong organic business growth, as well as maintain a high quality loan portfolio and improved productivity.
"Barring unforeseen circumstances, the group is expected to continue to record satisfactory performance for the rest of 2009," it said. — Bernama
Saturday 23 May 2009
Bear Trap(s)
Bear Trap(s)
There is an interesting post on this topic here: http://ssinvesting.blogspot.com/2008/05/how-to-define-bear-trap-if-public-bank.html
One of the challenges in investing for the long term is to have a personal strategy in handling volatility of stock prices.
You can choose to avoid such volatilities by investing in stalwarts like Nestle. This stock has long term revenue and profit growth. Its share price is trending upwards in keeping with its business performance. The consistency and predictably attracts certain types of investors. Yet, there are others who feel investing in this stock is not for them. Too slow and the returns are at best moderate!
Then, there are stocks with high volatilities or Beta. Their prices swing greatly, often based on rumours. Long term investors will be better off ignoring these fluctuations and monitor the quarterly reported results instead.
A good safety strategy in investing is to assume the attitude that all shares in the market are overpriced. This will prevent you from making big mistakes and forces you to carry out the appropriate valuation to counter this belief before putting good money to work.
What to do when the price of a good stock suddenly dropped drastically?
Instead of looking at price, follow PE. PE fluctuations up or down 20% are quite normal. You can usually ignore these, assuming you know the business of your investments well.
However, do not ignore the big fall in the PE of more than 20%. Check the news. What might be causing this sudden fall in price? Is there any fundamental deterioration in the business of the company? Will this be a temporary or permanent situation? You may have to decide to hold or sell quickly depending on your assessment.
Should you be buying more? If yes, when?
Let's review some recent events in the market.
Transmile: When news first broke a few years ago, that the auditor was unwilling to approve the accounts without qualification, the shares got sold down. This was a good learning experience. Some thought this was a buying opportunity. With the benefit of hindsight, cutting loss by selling at $9 to $11 was definitely better than the below $1 price the stock is trading at present. Wonder why related Kuok's company bought the shares during the particular period? The objectives of the majority or significant shareholders may not be in congruent with those of the minority shareholders. It was more to inspire some confidence in investors in Transmile.
PBB: Public Bank too was sold down since last year. Another drop occurred in Feb and March 09. Generally, the banking industry is going into a tough period. The price of the stock will reflect this. Is this a sell or a buy? Is this a temporary or a permanent setback to PBB core business?
Selling or buying into Transmile and PBB when their stock prices sunk are 2 entirely different operations. Which is a bear trap? Which is an opportunity or investment?
Usually the price will remain low for sometime after a bad news was known. You have time to pick these stocks. The important thing is to do the homework, check out and follow the news as this unfold. What is its impact on the long term durability of the business of the company? If you have done the homework, the analysis, the assessment of the impact of the news, the risks, and you understand the business and issues, be courageous. Make your own decision based on your own analysis. Don't be swayed by the crowd, or follow the crowd or look for affirmation by others.
The link: http://ssinvesting.blogspot.com/2008/05/how-to-define-bear-trap-if-public-bank.html rightly pointed out that the bear trap need only be applied to lousy companies with no prospect of recovery in their business. Those investing in good high quality companies need not fear the "bear traps" situations. Thanks for sharing this point. Instead the best opportunity to buy good quality companies is when they are being sold at low prices on some temporary bad news, assuming that these companies are within your circle of competence.
There is an interesting post on this topic here: http://ssinvesting.blogspot.com/2008/05/how-to-define-bear-trap-if-public-bank.html
One of the challenges in investing for the long term is to have a personal strategy in handling volatility of stock prices.
You can choose to avoid such volatilities by investing in stalwarts like Nestle. This stock has long term revenue and profit growth. Its share price is trending upwards in keeping with its business performance. The consistency and predictably attracts certain types of investors. Yet, there are others who feel investing in this stock is not for them. Too slow and the returns are at best moderate!
Then, there are stocks with high volatilities or Beta. Their prices swing greatly, often based on rumours. Long term investors will be better off ignoring these fluctuations and monitor the quarterly reported results instead.
A good safety strategy in investing is to assume the attitude that all shares in the market are overpriced. This will prevent you from making big mistakes and forces you to carry out the appropriate valuation to counter this belief before putting good money to work.
What to do when the price of a good stock suddenly dropped drastically?
Instead of looking at price, follow PE. PE fluctuations up or down 20% are quite normal. You can usually ignore these, assuming you know the business of your investments well.
However, do not ignore the big fall in the PE of more than 20%. Check the news. What might be causing this sudden fall in price? Is there any fundamental deterioration in the business of the company? Will this be a temporary or permanent situation? You may have to decide to hold or sell quickly depending on your assessment.
Should you be buying more? If yes, when?
Let's review some recent events in the market.
Transmile: When news first broke a few years ago, that the auditor was unwilling to approve the accounts without qualification, the shares got sold down. This was a good learning experience. Some thought this was a buying opportunity. With the benefit of hindsight, cutting loss by selling at $9 to $11 was definitely better than the below $1 price the stock is trading at present. Wonder why related Kuok's company bought the shares during the particular period? The objectives of the majority or significant shareholders may not be in congruent with those of the minority shareholders. It was more to inspire some confidence in investors in Transmile.
PBB: Public Bank too was sold down since last year. Another drop occurred in Feb and March 09. Generally, the banking industry is going into a tough period. The price of the stock will reflect this. Is this a sell or a buy? Is this a temporary or a permanent setback to PBB core business?
Selling or buying into Transmile and PBB when their stock prices sunk are 2 entirely different operations. Which is a bear trap? Which is an opportunity or investment?
Usually the price will remain low for sometime after a bad news was known. You have time to pick these stocks. The important thing is to do the homework, check out and follow the news as this unfold. What is its impact on the long term durability of the business of the company? If you have done the homework, the analysis, the assessment of the impact of the news, the risks, and you understand the business and issues, be courageous. Make your own decision based on your own analysis. Don't be swayed by the crowd, or follow the crowd or look for affirmation by others.
The link: http://ssinvesting.blogspot.com/2008/05/how-to-define-bear-trap-if-public-bank.html rightly pointed out that the bear trap need only be applied to lousy companies with no prospect of recovery in their business. Those investing in good high quality companies need not fear the "bear traps" situations. Thanks for sharing this point. Instead the best opportunity to buy good quality companies is when they are being sold at low prices on some temporary bad news, assuming that these companies are within your circle of competence.
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