Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Company Name: PUBLIC BANK BHD
| Research House: CIMB | Price Call: BUY | Target Price: 15.60 |
Target RM15.60
Expected topline expansion is the reason why we view Public Bank's 1Q net profit as being in line even though it came in at 23% of our full-year forecast (26% of consensus). The earnings driver in FY12 will be lower credit costs due to the cut in the collective assessment ratio. Our earnings forecasts are tweaked downwards as the cut in credit costs is offset by lower margin assumptions. We retain our target basis of parity with DDM value and Outperform rating on Public given its defensive qualities and the anticipated drop in credit costs.
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