PBBANK 31/3/25 Results Update (RHBIB)
Share Price: RM4.43 | Target Price: RM4.75 | Rating: NEUTRAL
Public Bank’s 1Q25 reported results are slightly behind RHBIB FY25 estimates. RHBIB has kept its forecasts for now as management is maintaining its c. 13% FY25F ROE target on expectations although NIM is expected to come under pressure as per management guidance. While its sound asset quality and solid reputation as a defensive bank should help shield investors from downside risks related to US reciprocal tariffs, potential upside may be capped, according to RHBIB, by profit downgrades if the earnings momentum does not pick up. RHBIB maintains its NEUTRAL call and TP of RM4.75 TP.
Public Bank’s 1Q25 reported results are slightly behind RHBIB FY25 estimates. RHBIB has kept its forecasts for now as management is maintaining its c. 13% FY25F ROE target on expectations although NIM is expected to come under pressure as per management guidance. While its sound asset quality and solid reputation as a defensive bank should help shield investors from downside risks related to US reciprocal tariffs, potential upside may be capped, according to RHBIB, by profit downgrades if the earnings momentum does not pick up. RHBIB maintains its NEUTRAL call and TP of RM4.75 TP.
PBBANK 1Q25 Results Update 22/5/25
Research House: RHB Investment Bank (RHBIB)
Analyst: David Chong, Nabil Thoo
Key Forecasts:
FY2025: Net Profit: RM7,457m | EPS: RM0.38 | DPS: RM0.23
FY2026: Net Profit: RM7,785m | EPS: RM0.40 | DPS: RM0.24
No change to its forecasts compared with previous report.