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Monday, February 26, 2018

PBBANK: Earnings Continued to Rise

Result Update

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

Valuation

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%.

Technical Outlook

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)

Conclusion

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

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

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