Public Bank expected to continue with robust results
Public Bank is expected to consistently deliver robust earnings.
This is due to its backed by strong cost management and superior asset quality.
“Public Bank is one of the strongest players in the small and medium enterprises (SME) space and is well positioned to capture the financing needs of the second and third tier beneficiaries (sub-contractors and building material suppliers) of mass rapid transport (MRT) project,” said a report by HwangDBS Research.
In addition, Public Bank’s loan growth prospects had been viewed as sustainable at 13 per cent, the research firm opined.
It further highlighted that Public Bank’s non-interest income was expected to remain robust with unit trust related fees contributing seven per cent to the group’s operating income.
In addition, Public Bank’s stellar asset quality could be seen through it’s move to full Malaysia Financial Reporting Standard (MFRS) 139 in 2012 and it’s collective allowance which fell to 0.8 per cent (from 1.5 percent), the research firm pointed out.
“Cost-to-income ratio remains the lowest in the industry,” HwangDBS Research noted.