Public Bank, PBBANK (Stock Quote 1295) has announced the 2nd quarter financial report for financial year 2009. These are the few key points of the report:
• The Group achieved a pre-tax profit of RM1,564.7 million and net profit attributable to equity holders of RM1,200 million, which represented a decrease of 11.2% and 8.5% respectively from the previous corresponding half year, due to a one-off goodwill payment of RM200 million received from ING.
• Excluding the one-off ING goodwill, the underlying operating pre-tax profit and net profit attributable to equity holders have actually improved by RM2.5 million, or 0.2%, and RM34.4 million, or 3.0%, respectively.
• The Group’s net interest and financing income continued to show a growth of 8.7% as compared to the previous corresponding half year, despite the negative impact of the drops in overnight policy rate by BNM from 3.5% to 2.0%.
• The Group’s asset quality continued to improve with its gross non-performing loan (NPL) balance decreasing by RM10.6 million to RM1.21 billion as at 30 June 2009. The Group’s net NPL ratio further improved to 0.80% from 0.93% a year ago.
• Public Bank recorded a pre-tax profit of RM1,174.1 million for the financial half year ended 30 June 2009 and was lower than the pre-tax profit of RM1,525.5 million achieved in the previous corresponding half year.
• Pre-tax profit contribution from the Group’s overseas operations decreased by RM64.5 million or 31.8% from the previous corresponding half year to RM138.3 million.
• For the 2nd quarter ended 30 June 2009, the Group registered a pre-tax profit of RM819.8 million, an improvement of RM28.2 million or 3.6% as compared to the previous corresponding quarter.
• The EPS for the 2nd quarter remains at 17.7 cent compared to previous corresponding quarter. The EPS for the half financial year ended 30 June 2009 has decreased to 35.1 cent compared to 39.1 cent in the previous corresponding half year.
• The Net assets per share is RM2.99.
• Total assets is RM204,038 million and total liabilities is RM193,004 million.
• Interim dividend of 30 cent less 25% tax is declared.
Personal view:
1. Public Bank NPL is improving, despite of the current economy crisis. This shows that Public Bank approves the loan application with extra carefulness.
2. Public Bank oversea operations are facing decrease of revenue as well as profit, which is a great challenge for the management.
3. By having half year EPS of 35.1 cent, we assume the EPS is same for the 2nd half, the total EPS is 70.2 cent. With the current share price RM9.96, the PE is 14.19.
