Apr 16, 2010

Hold PUBLIC Bank : MIB

Public Bank RM12.04: Hold
- No major impact from FRS 139
Marginal surprise. 1Q10 results were slightly above our expectations, with net profit at 25% of our 2010 forecast. Loan impairment allowance contracted sharply (-11% YoY, -21% QoQ) beyond our forecast, mainly from the overseas operations, with no major impact from FRS 139 adoption. We raise our earnings forecasts by 4-5% p.a., now expecting a 12% 3-year net profit CAGR. DDM-based target price is also upgraded slightly to RM12.50, but Hold rating is retained. 
source: Maybank Investment Bank