Assuming no further rate cut, Public Bank is expecting a low single-digit net interest margin (NIM) expansion in 2021, partially supported by still-robust current account and savings account growth and benign deposit competition with fixed deposits still reflecting a slight contraction.
PETALING JAYA: The worst might have been over for Public Bank Bhd
in the fourth quarter ended Dec 31,2020 (Q4’20), as credit cost is expected to improve in 2021 and management can front-load part of 2021 provisions into Q4’20 earnings, according to UOB Kay Hian Research.
The research house said it expects Public Bank to report a 14% quarter-on-quarter and 15% year-on-year contraction in Q4’20 earnings on the back of higher pre-emptive provisions with net credit cost coming in at 60 to 65 basis points (bps), compared with 40 bps in Q3’20).
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