Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Research House: OSK
Public Bank Bhd's domestic collective impairment will continue to rise in tandem with its robust loans growth given its adoption of Bank Negara Malaysia's 1.5 per cent transitional collective impairment guidelines.
OSK Research said this would raise the group's already highly conservative loan loss reserves, it said. "The group's allowance for impairment increased 15.8 per cent quarter-to-quarter.
"It is largely due to higher collective impairment from it relatively strong domestic loans growth and lumpy provisions on selective domestic corporate accounts," it said in its research note today.
OSK said Public Bank has surpassed the RM1 billion mark by recording a pre-tax profit of RM1.05 billion in the third quarter ended Sept 30, 2010, from RM856.51 million a year ago.
For the nine months ended Sept 30, it recorded a net profit of RM2.20 billion, 20 per cent higher compared with RM1.84 billion in the corresponding period of 2009.
The research house expected the bank to record a stronger performance, underpinned by higher net interest income from a larger loans base and stable net interest margins.
It said it would maintain its 'buy' call and target price of RM14.20. -- Bernama
Company Name: PUBLIC BANK BHD
Research House: OSK
Public Bank Bhd's domestic collective impairment will continue to rise in tandem with its robust loans growth given its adoption of Bank Negara Malaysia's 1.5 per cent transitional collective impairment guidelines.
OSK Research said this would raise the group's already highly conservative loan loss reserves, it said. "The group's allowance for impairment increased 15.8 per cent quarter-to-quarter.
"It is largely due to higher collective impairment from it relatively strong domestic loans growth and lumpy provisions on selective domestic corporate accounts," it said in its research note today.
OSK said Public Bank has surpassed the RM1 billion mark by recording a pre-tax profit of RM1.05 billion in the third quarter ended Sept 30, 2010, from RM856.51 million a year ago.
For the nine months ended Sept 30, it recorded a net profit of RM2.20 billion, 20 per cent higher compared with RM1.84 billion in the corresponding period of 2009.
The research house expected the bank to record a stronger performance, underpinned by higher net interest income from a larger loans base and stable net interest margins.
It said it would maintain its 'buy' call and target price of RM14.20. -- Bernama
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