Public Bank Q3 net profit at RM616.34m

KUALA LUMPUR: Public Bank Bhd reported net profit of RM616.34mil for its third quarter ended Sept 30, up 13.3% from RM543.62mil a year ago.

Announcing its results on Tuesday, it said the increase was mainly due to increase in net interest income and Islamic banking income, lower loan loss allowance and lower impairment loss.

Revenue rose to RM2.79bil from RM2.41bil a year ago. Earnings per share was 18.37 sen compared with 16.21 sen.

The Q3 earnings were also an improvement from the RM593.53mil in Q2.

For the nine-month period net profit rose to RM1.927bil from RM1.543bil in the previous corresponding period. Revenue rose nearly RM1bil to RM7.94bil from RM6.98bil a year ago while EPS was 57.44 sen.

Public Bank chairman Tan Sri Teh Hong Piow said the financial crisis that emanated from the US has had widespread impact on global economies and financial markets.

He said this had given rise to greater volatility and slower economic growth in the rest of the world.

“The Malaysian economy is expected to soften in the last quarter of 2008 and in 2009. The operating environment for the banking industry in Malaysia will thus be more challenging,” he said in a statement issued to Bursa Malaysia.

Despite the challenges, Teh said the group would remain focused on its strategy of building sustainable business growth, whilst exercising prudent risk management and maintaining strong asset quality in both its domestic and overseas operations.

“The group will continue to pursue strong growth in its deposit business, particularly in the expansion of its core customer deposits, a stable and long-term source of funding of the group’s expanding balance sheet," he said.

Teh said the Group would also step up efforts to improve productivity and increase its feebased revenue.

"Barring unforeseen circumstances, the group is expected to maintain its earnings momentum and to continue to record satisfactory performance for the rest of 2008,” he said.

URL: http://biz.thestar.com.my/news/story.asp?f...31&sec=business

so sad to see my play counter plunged like DJIA last Friday, from 102 high today to close @ 0.905. Last 1 hour of trade drop 5.5cts.. Aiyooo

what's that?? nothing related to PBBANK rite?

That counter in my watch list.

KNM huh.

off topic jor. get back to PBBANK.

PBbak for long term, KNM as play-counter / short term.

Luckily it post good profit, else we can see 7.50

U got it rite

i say....did i just missed the bus??? since PBB rebounded....

or issit still too early to tell?

This post has been edited by ravewar: Oct 14 2008, 10:22 PM

Next quarter won't be so lucky di.
Target price remain unchanged 4.50.

fren u better go in at 4.86 , i ady q 100 lots at 4.80 , juz incase any dude wanna be finger itchy

PUBLIC @ 4.80 ? Tat time index is about 600-700.. Still a long way home ..

Public bank at 4.50

so pessimistic or u can see the future

Just be patient sonny, the price will come....quite soon

This post has been edited by Singh_Kalan: Oct 25 2008, 12:39 PM

yes, looking forward to the price below rm5.

Below RM5 ? Can meh ?

why not, i bot it at 4.86 last time and sold it at 8.20 after keeping it for a few years

here's some history lesson for u:-
in 1997-98 crisis PBBANK loss 85% of its market cap. At current price 8.50, it only lose 28% of its market cap from its peak.
Even if it drop to 5.00, it only lose 58% of its market cap. Assuming the same loss of 85% repeating, it's price will drop to 1.85.

The above does not suggest that the price will drop to certain value. It's just history lesson.

This post has been edited by Singh_Kalan: Oct 27 2008, 02:32 PM

If it is really 85% then it is good for buyers, but we should consider it's earning capability is not same from 1997.

But we have to consider that, both (1997 and 2008) condition is different. 1997 Pbbank and local banking industry was directly hit from the front of the crisis whereby default rate was sky-rocketing all the way, while money was outflown to overseas and economy was in deep recession with GDP -7% or more and RM was depreciating non-stop.

This time, it is global financial crisis, which hit from backyard, and the economy slowdown will affect from the export reduction, but it is not a directly hit from the front, although the damage could be severe as well. But at least RM is shielded from the attack this round. In fact RM is appreciating against major currencies (like GBP, AUD, Euro) except USD and Yen.

---

Added on October 27, 2008, 4:46 pmIndeed earning capability is different from last time, it has improved a lot.

Back 1997 crisis, Pbbank was the only one bank that never registered a loss (with severe profit reduction) even during the crisis. Since then, people have given a good view/credit on this stock on their management side, that's why it ables to surge more than Rm10 because people willing to pay a premium over the good management.

This post has been edited by cherroy: Oct 27 2008, 04:46 PM

I have this counter at 9.90...

Since Pbbank get a good profit & stable financial structure, so just play for long term lorr... Good dividend too, peharps....

This counter is very stiff !