Share Price: RM4.33 | Target Price: RM4.75 | Rating: Neutral
TP slightly reduced to RM4.75 from RM4.80, Forecast FY25 Dividend Yield of around 5%. Public Bank’s loan book mix and sound asset quality should help ensure earnings resiliency in a more challenging macroeconomic environment. although its NIM may be more sensitive to policy rate changes a potential source of downside risks. As PBBANK share price has not meaningfully moved up from its trough, absolute downside risk to share price is lower than its peers and provides a solid defensive option for investors looking for a hideout. On the flip side, upside potential and dividend yields are also more modest.
PBBANK Research Update
Research House: RHB Investment Bank (RHBIB)
Analyst: David Chong, Nabil Thoo
FY2025 Forecast: Net Profit: RM7,547 m | EPS: RM0.38 | DPS: RM0.23
FY2026 Forecast: Net Profit: RM7,785 m | EPS: RM0.40 | DPS: RM0.24
(Both EPS for FY2025 and FY2026 revised down by 1 sen from previous Research Report dated 27/2/25.)