PBBANK: Quarterly Profits Soared

Result Update

For QE31/3/2021, PBBank's net profit rose 333% q-o-q or 15.1% y-o-y to RM1.530 billion while revenue was mix- up 2.3% q-o-q but down 8.8% y-o-y to RM5.03 billion. The improved performance on a q-o-q basis was mainly attributable to lower loan impairment allowance of RM358.1 million (+64.3%), higher net interest income and net income from Islamic banking business of RM137.6 million (+7.1%) and RM61.4 million (+16.5%) respectively, and higher net fee and commission income of RM52.9 million (+9.8 %). These were partially offset by lower other operating income of RM78.6 million and higher other operating expenses of RM36.1 million.


Table: PBBank's last 8 quarterly results

From the graph below, we can see that PBBank's profits & profit margins have reached the all-time high achieved in QE30/6/2011.


Graph: PBBank's last 61 quarterly results

Valuation

PBBank (closed at RM4.10 yesterday) is now trading at a PE of 15.7 times (based on last 4 quarters' EPS of 26.13 sen). At this PE multiple, PBBank is deemed fully valued. It pays a decent dividend yield of 3.2%.

Technical Outlook

PBBank has been rising in an irregular upward channel (see parallel blue lines in Chart 1). Immediate support is at the horizontal line at RM4.10 while immediate resistance is at the horizontal line at RM4.50. 

Chart 1: PBBank's daily chart as at May 11, 2021(Source: MalaysiaStock.biz)


Chart 2: PBBank's weekly chart as at May 11, 2021(Source: MalaysiaStock.biz)

Conclusion

Based on good financial performance and fair valuation, 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.