Public Bank Bhd are up by two sen to RM13.54 after posting profits last year that satsfied market expectations.
The bank reported a 12.8 per cent increase in pre-tax profit to US$1.52 billion for the financial year ended Dec 31, 2011US$3.65 billion RM11.035 billion, registered in 2010.
ECM Libra Investment Research said the results were within market expectations with a 14 per cent growth in earning per share recorded on the back of a 10 per cent rise in operating profit and a drop in provisions.
"Loans and deposit growth of between 13 and 14 per cent offset lower net interest margins, and Public Bank is still targeting similar growth rates in 2012," it said in a research note today.
However, ECM Libra said the bank's dividend payout ratio of 48 per cent for 2011 was lower than financial year 2010's 52 per cent.
"We have reduced our earnings per share forecast marginally by between one and three per cent and although we have raised our target price to RM13.00 per share, we are maintaining a "hold" as total expected returns is zero," it added.
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