RHB Research said Public Bank’s third quarter earnings had normalised on strong fee income and net interest margin (NIM) recovery.“Management continued to strengthen asset quality, and took the opportunity to boost loan loss coverage (LLC) to a high 209%.
KUALA LUMPUR: RHB Research is maintaining its “buy” call on Public Bank Bhd
, raising its target price from RM20.60 to RM21.60 after its results for January-September beat its own estimates and consensus.
The research house said Public Bank’s third quarter earnings had normalised on strong fee income and net interest margin (NIM) recovery.“Management continued to strengthen asset quality, and took the opportunity to boost loan loss coverage (LLC) to a high 209%.
Its share price has risen 21% on vaccine news, lifting FY21F price-to-book value (P/BV) to 1.4 times.“We believe Public Bank will continue to command premium valuation, given its defensive qualities in the challenging economic environment, ” it said.
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