Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Research House: AFFIN
Company Name: PUBLIC BANK BHD
Research House: AFFIN
From a recent meeting with PBB, Affin believes that Public Bank’s financial year 2010 net profit should be in-line with its forecast of RM3,065.3 million and also that of consensus’ RM2,921 million.
Public Bank Bhd’s Q4 financial year 2010 results are slated to be released on January 25.
Management also indicated that dividends will be based on a 50 per cent payout ratio going forward, notwithstanding potential capital raising needs (rights issue), should Bank Negara implements a more stringent capital adequacy requirement under the implementation timeline of Basel III.
Hence, Affin has upped its currently more conservative dividend forecasts from 55-60 sen (gross) to 58-70 sen for financial year 2010-2012.
Affin maintains its 'ADD' rating and Gordon Growth derived-Price Target of RM13.80, equivalent to 3.2 times price/book value based on financial year 2011 return on equity of 23.7 per cent, 5 per cent growth rate and a cost of equity of 10.8 per cent. - Reuters
Public Bank Bhd’s Q4 financial year 2010 results are slated to be released on January 25.
Management also indicated that dividends will be based on a 50 per cent payout ratio going forward, notwithstanding potential capital raising needs (rights issue), should Bank Negara implements a more stringent capital adequacy requirement under the implementation timeline of Basel III.
Hence, Affin has upped its currently more conservative dividend forecasts from 55-60 sen (gross) to 58-70 sen for financial year 2010-2012.
Affin maintains its 'ADD' rating and Gordon Growth derived-Price Target of RM13.80, equivalent to 3.2 times price/book value based on financial year 2011 return on equity of 23.7 per cent, 5 per cent growth rate and a cost of equity of 10.8 per cent. - Reuters
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