Share Price: RM4.55 | Target Price: RM5.36 | Rating: Buy
PBB reported a solid year, achieving 2024 net profit of RM7.15bn (+7.5% yoy) on the back of: i) sustained growth of fund-based income (2024: +4.1% yoy); ii) robust non interest income growth +19% yoy; and iii) writeback of overlays, resulting in very minimal allowances (NCC at almost zero). Despite a goodwill impairment of RM473.8m related to its Hong Kong operations, the impact to bottomline was cushioned by the overlay writebacks. Impact from the seasonal year end deposit competition did not have much bearing on 4Q24 NIM, of which was only down 3bps qoq to 2.21%. 2024 NIM ended 1bps lower yoy to 2.21%, in-line with management’s guidance of low-single digit compression for the year. 2024 CIR has been efficiently maintained at 34.5% despite continual spending on personnel and establishment costs.
PBBANK Results Update for Q4 Ending 31/12/24
Research House: Affin Hwang Investment Bank (AHIB)
Analyst: Tan Ei Leen
FY2025 Forecast: Net Profit: RM7,390m | EPS: RM0.381 | DPS: RM0.228