Public Bank Berhad
RHB Investment Bank
Date: 27 Feb, 2025
Results Update
Q4 Ending: 31/12/24
Analysts:
David Chong
Nabil Thoo
Share Price: RM4.55
Target Price: RM4.80
Rating: Neutral
FY2025 Forecast:
Net Profit: RM7,544 m
EPS: RM0.39
DPS: RM0.23
Report Summary & Comments
Public Bank’s 4Q24 reported results were in line with RHBIB estimates, goodwill impairment for Hong Kong was booked in as expected and cushioned by higher management overlay reversals.
Management guidance point to a stable growth scenario with dividend payout ratio expected to increase to 60% mark. RHBIB does not have any major concerns, although the share selldown by its major shareholder and LPI Capital could be a near-term overhang.
Hong Leong Investment Bank
Date: 27 Feb, 2025
Results Update
Q4 Ending: 31/12/24
Analysts:
Chan Jit Hoong
Share Price: RM4.55
Target Price: RM5.30
Rating: Buy
FY2025 Forecast:
Net Profit: RM7,377m
EPS: RM0.38
DPS: RM0.225
Report Summary & Comments
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.
Date: 27 Feb, 2025
Results Update
Q4 Ending: 31/12/24
Analysts:
Desmond Ch’ng, BFP, FCA
Target Price: RM5.30
Rating: Buy
FY2025 Forecast:
Net Profit: RM7,531m
EPS: RM0.39
DPS: RM0.23
Public Bank’s FY24 earnings were in-line with expectations amid stable NIM and strong NOII. Goodwill write-down booked in 4Q24 was offset by a write-back in management overlays. Our FY25/26E earnings are raised marginally by 1.7%/1.0% on higher NOII estimates and our TP is raised marginally by 10sen to MYR5.30, on an unchanged FY25 PBV of 1.7x (COE: 9.1%, ROE: 12.7%; LT growth assumption of 4%).
Date: 27 Feb, 2025
Results Update
Q4 Ending: 31/12/24
Analysts:
Tan Ei Leen
Target Price: RM5.36
Rating: Buy
FY2025 Forecast:
Net Profit: RM7,390m
EPS: RM0.381
DPS: RM0.228
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.
CORPORATE DEVELOPMENTS
3 Feb 2025
Public Bank Bhd’s upcoming Q4 results, scheduled for release on 26/2/25, are expected to reflect the financial impact of the goodwill impairment at its 73.2%-owned subsidiary, Public Financial Holdings (PFH), which had recorded a goodwill impairment on its wholly owned subsidiaries, Public Bank (HK) Ltd, Public Finance Ltd, and Winton (BVI) Ltd. The impairment was approximately HK$810 million or RM463 million. (Source: TheEdge)
4 Dec 2024
On 10/10/24 it was reported that Public Bank Bhd would acquire 44.15% stake in LPI Capital for RM1.72bil by launching a Mandatory General Offer for LPI at RM9.80/share. Teh Li Shian Diona, daughter of the late Tan Sri Dr Teh Hong Piow also announced that the Estate and Consolidated Teh Holdings Sdn Bhd intended to undertake a restricted offer for sale of a portion of their Public Bank shares over a 5-year period, in compliance with the Financial Services Act. The acquisition of 44.15% in LPI Capital (175.9 million shares) was completed on 4/12/24. (Source: TheStar, TheEdge)