PBBank (Public Bank Berhad), established in 1966, is a prominent Malaysian financial firm. It’s one of the largest banks in the country by assets, boasting a strong domestic presence with an extensive branch network. PBBank also maintains a presence in key international financial hubs like Singapore and Hong Kong.
PBBank is well known for its focus on retail banking and serves a vast customer base across Malaysia.
The bank’s headquarters are located in Kuala Lumpur, Malaysia. Ah Lek Tay, appointed in Jul 2002, is the current Chief Executive Officer. PBBank offers a suite of conventional banking products and services, catering to individuals, small and medium enterprises (SMEs), and large corporations. The bank is known for its emphasis on customer service and its commitment to providing accessible and affordable banking solutions.
PBBank trades on the Bursa Malaysia stock exchange under the ticker symbol PBBANK.
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PBBank EPS and Revenue Breakdown 2020-2023
| Source: Finbox | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | MYR 0.25 | MYR 11.31 billion |
| 2021 | MYR 0.29 | MYR 12.54 billion |
| 2022 | MYR 0.32 | MYR 13.43 billion |
| 2023 | MYR 0.34 | MYR 13.09 billion |
Dividend & Industry Comparison
PBBank Share Price & Chart
PBBank’s share price has been relatively stable over the past few years, mostly ranging since 2020 after a decline in 2019 following a significant bull run prior that saw its share price climb to more than MYR5 per share.
Dividend Yield: 4.59%
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PBBank Share Price Forecast
Data compiled by TradingView shows that out of 19 analysts covering PBBank shares, 16 have a Buy rating on the stock, two have a Hold rating on the shares, and one has a Sell rating.
A View From The Bulls: In a July 2024 note, analysts at TA Research raised their price target for PBBank to MYR4.90, citing “resurgent momentum.” The research firm said they “see increased aggressiveness in PBB defending market share, with a noticeable shift towards the SME and business segments, particularly non-residential properties.” The firm noted some moderation in residential mortgages but added that HP activities are on the rise. The firm also said PBBank is “maintaining exceptional asset quality,” has room to raise its dividend and could be a beneficiary of foreign inflows.
A View From The Bears: While not a bearish view (no recent bearish notes), analysts at RHB Research maintained a Hold rating on the stock, noting that “with auto sales set to ease this year after 2023’s record high TIV of c.800k units,” it has implications on Public Bank’s loan growth prospects and NIM since the bank is a major auto lender.
Our View: For investors looking for a dividend-paying stock in Malaysia that has a strong track record, then PBBank may be one to assess further.
Average Analyst Consensus 12-Month Price Target: MYR 4.79
Who Should Buy PBBank Shares
PBBank can be an attractive investment for various investor profiles, but it’s essential to consider your individual financial goals and risk tolerance. Here’s who might find PBBank shares appealing:
Conservative Investors: PBBank is known for its conservative lending practices and strong balance sheet. This approach has led to consistent profitability and lower risk compared to some peers. Investors seeking stability and capital preservation might find PBBank a suitable choice.
Dividend-Focused Investors: The bank has a history of consistent dividend payouts. For investors prioritizing income generation, PBBank’s attractive dividend yield can be a compelling reason to consider the stock.
Long-Term Investors: PBBank has a proven track record of sustained growth and profitability. Investors with a long-term investment horizon may benefit from the bank’s consistent performance and potential for capital appreciation.
Investors Bullish on the Malaysian Economy: PBBank is deeply rooted in the Malaysian economy. Investors who believe in Malaysia’s long-term economic growth prospects may find PBBank a good proxy for that growth.
