Corporate Highlights
Public Bank : Earnings growth momentum building up Outperform
3QFY09 Results
- 3QFY09 results in line but above consensus. Third consecutive quarter of earnings expansion, suggesting earnings momentum is building up.
- Strong loan growth and higher NIM sequentially.
- Sustained non-interest income at an elevated level.
- LLP slightly lower qoq, breaking three consecutive quarter of rising trend.
- Asset quality remain stable although there was a slight increase in gross NPLs, gross and net NPL ratios (only by 2bps each) as well as lower LLC. But LLC remains above the 170% level and all ratios still significantly stronger (double) than industry average.
- Capital ratios also remain strong.
- Maintain Outperform. Fair value of RM12.57 is based on 16x (sector and market benchmark) FY10 EPS.
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