Share Price: RM4.55 | Target Price: RM5.30 | Rating: Buy
Public Bank’s 4Q24 profit rose 41% YoY given faster revenue growth, loan loss provision write-backs, and lower effective tax rate. Also, lending growth gained traction and GIL ratio declined. NIM contracted sequentially.
Overall results beat HLIB expectations. Moreover, there is headroom for provision write-backs and PBBANK’s foreign shareholding is near multi-year low. HLIB maintained its BUY rating with a slightly increased target price of RM5.30.
PBBANK Results Update for Q4 Ending 31/12/24
Research House: Hong Leong Investment Bank (HLIB)
Analyst: Chan Jit Hoong
FY2025 Forecast: Net Profit: RM7,377m | EPS: RM0.38 | DPS: RM0.225