so how's that compare with last quarter's dividend??

Folks,

Anyone care to comment why PBBank choose to give out share instead of cash?? This is a bit too gimmicky for my liking.

Dreamer

As predicted, those treasury share is given to offset no more special dividend this year or lesser dividend ahead.

Actually if Pbbank average purchased treasuries share is above 9.00, then shareholders receiving the share actually is at losing end of the buyback programme. As if those buyback money/cash being channelled as dividend in the first place rather than utlising for buyback then the dividend is much more than the value of treasuries shares shareholders are getting.

Except one issue, treasuries shares won't be taxed while dividend will (if company doesn't have tax credit anymore which prevent them to give tax exempted dividend). But those lower income shareholders won't be taxed even with dividend, so buyback move is more beneficiary on high end income shareholders.

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Added on January 20, 2009, 8:56 pmPreserving of cash on anticipation
1. higher NPL ahead
2. lesser loan growth ahead
3. lesser profit quarterly ahead is widely expected.
4. Margin might be shrinking as BLR is expected to slash down while BNM put a lower cap on FD rate, which BNM doesn't allow bank to offer less than 3% on 1 month and 3.5% for 12 months FD at least until now.
5. Difficulty in raising fund in financial market, so cash is valuable for any financial instituition on current environment.

This post has been edited by cherroy: Jan 20 2009, 08:59 PM

mm..... it means that by getting treasury shares

have the advantage of avoiding the taxing or company need to preserve more cash during the down turn.

so overall, is this a disappointment or is it a surprise ???

good news or bad news????

look like a lot of us cannot accept this

"less 25% income tax" -> taxed at 25% company level, or TE - Tax Exempted??

Thanks....

cherroy,

I guess I have to look carefully whether I should sell my PBBank shares.

Dreamer

Mean person who purchase PBB share before 26th Feb 09 entitled for this?

Payments? payment for what?

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Got question here.

How about 1000 Unit?
is meaning will get 1000/35 =28.57 unit?

that's not yet 1 lot.
what will happen?

Hmm..... U anticipating PBBANK to give out less dividend in the future as well?

Yes. Payment for the dividend.

u'll only get 28 shares as there is no fraction share
& u still can buy & sell in odd lot





BTW. did any1 know by how much the mother share price will be adjusted on the Ex Date? -50 cents?

This post has been edited by fergie1100: Jan 21 2009, 09:00 AM

Although still view pbbank is well managed and able to withstand economy recession, all banks in the world are in considerable risk if economy situation doesn't improve or economy deteoriate further. Finance sector is most vulnerable in economy recession.

If Pbbank can't repeat its previous dividend, we might see some sell-down on this stock, as it is not cheap at current level. After the main support its share price currently is its dividend yield.

Having said that, local big cap name are well supported by local fund especially like EPF and PNB (because they have substantial interest in it so to protect their portfolio as well), as long as there is no significant selling from foreign funds and local UT (because of redeemption), then it still able to stand around 8.00. Unless local big boy give up the support or no longer able to support it.

Now, local stocks market is all about local big boy only. As lately we can see from substantial shareholders activities on various company, you often see EPF, PNB and other gov investment arms are buying right now.

Already stated less 25%, where got TE?

If it is declaring like: 25 cents single tier, then that's mean it is tax at company level already.

If a company wants to declare 25 cents less 25% income tax, then under single tier system it would become 18.75 cents single tier.

Briefly browse through the Financial Statement, I think that generally reflected a slow down in 4th Quarter. Earnings from loan are generally stagnant and growth come from other fee. NPL are reversing the downward trend and start to increase, and bank start to recoup cash (for bad time?). Think PPB is not going to be as generous as before (there are better things to do with the cash than pay back to shareholder?). Viewing at this, I think other banks are going to be worse off since PBB is having one of the best asset quality in the country, others might force to write down even more... Just my 2 cents.

So you are saying that 2009 will be tough year for banking industry and even though that PBBank is a best counter among the banking, they are also preparing a downturn that might impact their financial profits, thus is it time to trigger a sell at this moment.....

wonder in 2009 Q1, if overall the company earnings are significant impacts, that would trigger another sell off, and many of us saying that the worst is not yet coming and it will be somewhere in Q2-Q3, thus isn;t that it is a time to wait and see.....

mmmm............ dilemma now..... i smell fear here....

Banking sector is one of the most vulnerable industry in poor economy situation, because most bank's asset are loan and earning come from loan paid (differentiate between BLR and FD rate). So if those loan are not paid on time and more than 3 months, it will classified into NPL already.

Sell off or not, it depends on the outcome of it. Nobody knows the severity of the economy recession impact. May be better off or worst, it is up to anyone guess, predict.
Market price or stock price is price in a moderate difficult situation already, so anything better than expected, market might be rallying, but if worst then surely some sell off will occur.

This post has been edited by cherroy: Jan 21 2009, 10:22 AM

I am still waiting sideline... I like this counter but still think that's too high for me to catch And true, banking industry is highly volatile, with new Basel II implementation, think many banks might need to set aside extra...

i'm waiting for lower price to go in again...

1295 PBBANK PUBLIC BANK BHD
Final Dividend 25%

Entitlement Details:
Final dividend of 25% less 25% income tax


Entitlement Type: Final Dividend
Entitlement Date and Time: 02/03/2009 05:00 PM ---> Means what then?
Year Ending/Period Ending/Ended Date: 31/12/2008
EX Date: 26/02/2009 ---> Shareholder before and on this date entitled for the dividend
To SCANS Date:
Payment Date: 11/03/2009 ---> The day that get paid dividend

My noob question again
My understanding in red colour words correct? Then what is the another one? Entitlement Date and Time

Share held before ex-date will entitle for div. Buy on ex-date will not entitle.

This post has been edited by smartly: Jan 21 2009, 02:23 PM

U'll get the dividend if u have the share before Ex Date only

As for the Entitlement Date, refer to Cherroy's previous explanation below