Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Research House: OSK
Company Name: PUBLIC BANK BHD
Research House: OSK
OSK Investment Research has maintained a "buy" call for Public Bank Bhd as its Return on Equity (ROE) was raised marginally to 26.3 per cent from 26 per cent and the target price from RM14.20 to RM14.40.
In a research note today, OSK said the potential upside in the medium term ROE targets on the back of a more focused strategy in growing Public Bank's higher ROE fee income business line, could serve as a re-rating catalyst for the bank.
"The group''s financial year 2010 results were spot on with our full year estimates, but slightly ahead of consensus. It represents 99.6 per cent and 104.8 per cent of our and consensus full-year forecast respectively.
"The results are commendable as the group continued to register above industry growth rates.
"This translates into a one-presentation transcript improvement in ROE to a record 27.1 per cent, despite the competitive domestic banking landscape, which has put immense pressure on industry wide retail lending yields and upward pressure on deposit rates in general," it said.
The research firm has also raised its financial year 2011 and financial year 2012 earnings forecast by 2.9 per cent and 3.7 per cent respectively, taking into account the stronger fee based income growth from the bank's bancassuarce business.
-- BERNAMA
In a research note today, OSK said the potential upside in the medium term ROE targets on the back of a more focused strategy in growing Public Bank's higher ROE fee income business line, could serve as a re-rating catalyst for the bank.
"The group''s financial year 2010 results were spot on with our full year estimates, but slightly ahead of consensus. It represents 99.6 per cent and 104.8 per cent of our and consensus full-year forecast respectively.
"The results are commendable as the group continued to register above industry growth rates.
"This translates into a one-presentation transcript improvement in ROE to a record 27.1 per cent, despite the competitive domestic banking landscape, which has put immense pressure on industry wide retail lending yields and upward pressure on deposit rates in general," it said.
The research firm has also raised its financial year 2011 and financial year 2012 earnings forecast by 2.9 per cent and 3.7 per cent respectively, taking into account the stronger fee based income growth from the bank's bancassuarce business.
-- BERNAMA
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