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Thursday, April 21, 2016

PBBank: Earnings Dipped Slightly

Result Update

For QE31/3/2016, PBBank's net profit dropped 18% q-o-q but rose 5% y-o-y to RM1.23 billion while revenue increased by 2% q-o-q or 10% y-o-y to RM5.04 billion. Profits dropped q-o-q is mainly due loan  impairment allowances of RM67.5 million in the current quarter as compared to the net writeback of loan impairment allowances of RM104.3 million in the preceding quarter.


Table: PBBank's last 8 quarterly results

From the chart below, we can see that PBBank's top-line and bottom-line have been rising but profit margins have been slipping.


Chart 1: PBBank's last 41 quarterly results

Valuation

PBBank (closed at RM19.02 yesterday) is now trading at a PE of 14.3 times (based on last 4 quarters' EPS of 133 sen). At this PE multiple, PBBank is deemed fairly attractive. It pays a decent dividend yield of 3%.

Technical Outlook

PBBank is still in a long-term uptrend line, with support at RM18.20-18.40.


Chart 2: PBBank's monthly chart as at Apr 20, 2016 (Source: ShareInvestor.com)

PBBank broke above its intermediate downtrend line, RR at RM18.80-19.00 in early April. This breakout could lead to further rise in the share price.


Chart 2: PBBank's weekly chart as at Apr 20, 2016 (Source: ShareInvestor.com)

Conclusion

Based on good financial performance, reasonable valuation & positive technical outlook, PBBank is still a good stock for long-term investment.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, PBBank

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