For QE31/12/2017, PBBank's net profit 5.8% q-o-q or 0.2% y-o-y to RM1.49 billion while revenue rose 0.7% q-o-q or 5.2% y-o-y to RM5.35 billion. PBT rose q-o-q mainly due to lower loan impairment allowance, higher other operating income, lower other operating expenses and higher net interest income, partially offset by lower investment income.
Table: PBBank's last 8 quarterly results
From the chart below, we can see that PBBank's revenue, profits and profit margins are beginning to rise again after stagnating for 6 quarters.
Graph: PBBank's last 44 quarterly results
PBBank (closed at RM22.90 as at 12.30pm) is now trading at a PE of 16 times (based on last 4 quarters' EPS of 142 sen). At this PER, PBBank is deemed fully valued. It pays a decent dividend yield of 2.7%.
PBBank is still in a long-term uptrend, with 30-month EMA acting as a support at RM20.00.
Chart 1: PBBank's monthly chart as at Feb 23, 2018 (Source: ShareInvestor.com)
PBBank broke above the horizontal line at RM21.00 in late January. This breakout could signal the continuation of its prior uptrend. The immediate target price is at RM24.40.
Chart 2: PBBank's weekly chart as at Feb 23, 2018 (Source: ShareInvestor.com)
Based on good financial performance, fair valuation & positive technical outlook, PBBank is still a good stock for long-term investment.
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