Fundamental Analysis as of FY14 – http://www.slideshare.net/lcchong76/pbbank-fundamental-analysis-fy14
Peer Comparison in Bank Industry (KLSE) – http://www.slideshare.net/lcchong76/bank-industry-klse-peer-comparison
Excel – http://1drv.ms/1PF9lZA
Latest Financial – Q3 2015 Financial Report (22 Oct 2015)http://www.bursamalaysia.com/market/listed-companies/company-announcements/4899209
FY15 Q3 Results Highlight:
- PBBANK reported a 3QFY15 net profit of RM1.2b which grew modestly by +0.4%qoq and +0.8%yoy. This led to a net profit of RM3.57b (+9.3%yoy) for 9MFY15.
- Provisions for loan impairment rose by +27.7%yoy for 9MFY15. This was contributed by a rise in provisions in 3QFY15.
- 9MFY15 PPOP grew +10.0%yoy. This was supported by an improved NOII of +20.7%yoy with higher FX gains of +69.4%yoy due to favourable FX movements.
- NIM improved 5bp sequentially to 2.16% in 3QFY15. The NIM improvement was contributed by stronger expansion in loans which pushed its LD ratio higher. Loan growth picked up pace to a higher annualised rate of 12.5% as compared to 11.2% annualised for 6MFY15.
- The Group’s net LD ratio rose to 89.8%, up from 87.0% in the preceding quarter.
- Faster pace in loans growth with domestic loans continuing to grow at a rate which outpaced the industry. The Group’s gross loans accelerated to an annualised rate of 12.5%. This was contributed by faster pace of international loans which gained momentum to a higher annualised growth of 40.3% contributed mainly by Hong Kong (37.3% annualised) and Cambodia operations (48.1% annualised). Meanwhile, domestic loan growth remained stable with an annualised growth of 10.5%. Market share for domestic loans remained steady at 17.4%.
- On track to achieve all FY15 KPI targets. The Group remains on track to achieve its FY15 KPI targets of:
- Loan growth of 9-10%
- Deposit growth of 9-10%
- Net ROE of > 16%
- RWCR of > 13.0%
- GIL ratio of < 1%
- CI ratio of < 32%
- Historical P/B
- FY14 (BPS: 7.674) – 19.51 (Uncertainty Risk: HIGH)
- Current (BPS: 7.676) – 19.51 (Uncertainty Risk: HIGH)
- FY15 (BPS: 7.66 ± 5%) – From 18.50 to 20.44 (Uncertainty Risk: HIGH)
- FY16 (BPS: 8.372 ± 5%) – From 20.22 to 22.35 (Uncertainty Risk: MEDIUM to HIGH)
- BPS applied to reach the current stock price (18.6): 7.317
- In my opinion, fair value of PBBANK range from 20 to 20.80.
Despite unexpected good results of PBBANK in Q2FY15, moving forward, I believe that PBBANK result will be stable or a bit slow down. This is because loan applications will continue to be slow marginally and NIM compression will be higher in the future.
I will continue to hold this share, and accumulate it when there is a dip in the price.
At the time of writing, I owned shares of PBBANK.