PUBLIC BANK BHD
KLSE (MYR): PBBANK (1295)
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Last Price
4.09
Today's Change
+0.01 (0.25%)
Day's Change
4.08 - 4.13
Trading Volume
11,907,500
Financial
T4Q
31-Mar-2021
2020
31-Mar-2021
2019
31-Mar-2021
2018
31-Mar-2021
2017
31-Mar-2021
Discussions
19 people like this. Showing 50 of 14,998 comments
if investors aim for dividend + growth in share price for banking sector. RHB & MAYBANK are far better than public bank at this moment. Public bank yearly dividend cant even cover current margin interest compare to MAYBANK & RHB
1 week ago
if investors aim for dividend + growth in share price for banking sector. RHB & MAYBANK are far better than public bank at this moment. Public bank yearly dividend cant even cover current margin interest compare to MAYBANK & RHB
1 week ago
> if investors aim for dividend + growth in share price for banking sector. RHB & MAYBANK are far better than public bank at this moment. Public bank yearly dividend cant even cover current margin interest compare to MAYBANK & RHB
Consider this: The PER, Dividend Yield, and Payout Ratio for the three banks in question are as follows:
1) Maybank: 12.87, 6.01% and 0.76
2) RHB: 8.43, 7.23%, 0.61
3) Public: 12.25, 4.53%, 0.41
Of these three, RHB is the most attractive. Public comes second. Maybank appears to be the most richly priced at present. While Maybank pays a decent dividend, its payout ratio is very high, almost twice that of Public Bank. (Note: I have positions in all three.)
1 week ago
To me, PBBANK is a Warren Buffett stock, where our favorite holding period should be "forever". This is because of the bank's long term historical track record of growing its EPS and DPS and as a result its NAPS. Due to its reliable dividend growth, after several years of holding, the Dividend Yield on Cost will have grown significantly, and the best part is it keeps growing thereafter. If you have a choice between putting an FD with Public Bank, or buy its stock, no question, the latter will cause you to be very happy in 10, 20 years time. In the short term, many stocks look attractive compared to PBBANK, but after 10 years, you will be happier that you have bought PBBANBK instead of others.
Those who owned PBBANK 10 years ago will know what I mean.
1 week ago
It's true that the Management and the Board is older and it's easy to criticize old, but if you compare against the alternative where the choice is a young and brash management and board, for one of the leading banks, you want the experience to navigate through the financial volatile world. Banking is not about sexy and short-termism. It's about experience and being there for the long haul, "forever" so to speak. Of course, there should be a clear pipeline of younger successors coming up, but IMHO, they should not be too young and should have a balance erring on over 50s for the necessary experience.
1 week ago
Digibanks provide better short term returns to customers, no question, as there's lots of nice promotions right now. But the million dollar question is - do they have the track record to survive through the crisis, the recessions, the market crashes? Will they be there for the long haul? Only time will tell. Short term, they win market share but long term? With PBBANK, if your goal is to own this stock "forever", then, your eyes is on the next 10, 20 years, not current.
1 week ago
Don't get too hooked up that 1Q24 earnings are lower than 1Q23 earnings. If you're in for the long term and studied carefully its historical quarterly earnings over the past 10 years, it's not a permanent drop. When prices are temporarily depressed, it's usually a good opportunity to own one of the leading banks in the country and in a sector that is profitable and resilient over the long term. PBBANK will be clearly more profitable than today in 10, 20 years time.
1 week ago
New investors into PBBANK will always find PBBANK less attractive than MAYBANK. That's probably true after 3-7 years of holding. However, by the 8-10th year of holding, they will be glad they bought PBBANK and not MAYBANK, due to the dividend and earnings growth effect. If you want to own this for life (e.g. for upcoming retirees wanting to have a growing annuity / dividend payment for life), this is one of the proven stocks.
1 week ago
Personally, my only whinge is old management and Board and lack of transparency on pipeline succession. Tan Sri Dato' Tay Ah Lek contributions to PBBANK success is unparalleled, but markets are wary of MD and CEO who is 82 years old. He can be a senior mentor, but if there is a CEO who is 20-25 years young (still late 50s, early 60s) that he can trust, I believe the market will re-rate this stock. However, if you 're in this stock for the long haul, re-rating is not necessary but a bonus. It is okay because with each passing annual and quarterly reports, you will see growing EPS, DPS and NAPS and the stock price grows with it.
1 week ago
Notwitstanding age, PBBANK management quality is top class, I would rate clearly higher than management quality in other banks, so, it's not a complaint. However, it would clearly be market leader if there is clear pipeline succession and do what Warren Buffett do which is to name 2 potential successor amongst its current management team where the whole world knows. If PBBANK can do this, the stock will re-rate upwards. However, this is rare in Malaysia, so, don't hold your breath for this to happen. Just saying.
1 week ago
If Warren Buffett management team rates an A, then, I would rate PBBANK management B/B+ and MAYBANK management C+ from a personal perception point of view. A C is good enough for me to invest. Some of these ratings unfortunately cannot be delinked from other factors, so, it's not necessarily a comment about individuals per se, but the broader picture, in so far as their ability to maximize earnings and dividends to shareholders over the long term i.e. over my lifetime. Others with a different time-frame and different priorities will have different ratings.
1 week ago
@Engineer ... I don't know what to say ... all I can say is don't imagine "what if I have held and not sell the past 24 years" ... look forward. 😁
1 week ago
And the thing with Buy and Hold stock like PBBANK, we don't think about selling. All we think about is how high will next year's dividend grows. It's really about buying a growing annuity income that pays dividends for a lifetime. Nobody thinks about selling pensions / annuities that they own. Same with PBBANK - it's about collecting the growing dividends until we die, and then, pass it on to our next of kin. So, the only question is about entry price, but even then, don't get hooked up to it.
As usual, diversify, don't own more than 5%-10% of your portfolio max if you like to see your portfolio continue to make new all time highs regularly.
1 week ago
Ideal banks should take care on risk factors and quality of loan rather than high dividend payout. PBB pays more or less 50% is ideal. Reserve 50% for expansion and unseen event or circumstance happens. I checked the pattern of how 3 local Singapore Banks are running, more or less the same!
1 week ago
PUBLIC RESEARCH TELLS YOU TO SELL TSH BUT PUBLIC MUTUAL FUNDS BUYING TSH RESOURCES SHARES LIKE NO TOMORROW!, Calvin Tan
https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2024-05-22-story-h-161464080-PUBLIC_RESEARCH_TELLS_YOU_TO_SELL_TSH_BUT_PUBLIC_MUTUAL_FUNDS_BUYING_TS
1 week ago
MG SIFU
BETTER FOLLOW PUBLIC MUTUAL FUNDS BUY TSH RESOURCES!
JUST WALLOP
BETTER THAN OUR 2013 YEAR PM CORP BULL RUN!
1 week ago
> To me, PBBANK is a Warren Buffett stock, where our favorite holding period should be "forever". This is because of the bank's long term historical track record of growing its EPS and DPS and as a result its NAPS.
While Public Bank is probably the best run bank in Malaysia (based on its Net Margin that is above 50 %, NIM of 2.86, ROE of > 12.5 %, and cash to debt ratio of 1.55), it has been recording a single digit growth of less than 5% for over 10 years now.
As to the dividend yield, it appears high now only because of the slump in its share price over the last two years. Until recently, it was the banking stock with the highest PE. (Historical median PE: 14.8.) No longer. I sold out in mid-2022. Now, I find Public attractive again -- compared to its alternatives.
1 week ago
I added at 4.18 today.
https://klse.i3investor.com/web/blog/detail/DividendGuy67/2024-05-24-story-h-160805766-PBBANK_I_added_at_4_18
1 week ago
Thirai Thiraviam,
Mind you Public bank shares has ballooned to about 20bn shares. It's share dilution. Of course buy more to make up for dividends.
Thanks 🙏 for your insights.
3 days ago
On 23 May, price didn't want to go up past 4.24. That's a lower high. So, the path of least resistance for now is down. Today closed 4.13 and should still move down next few days. The key areas are around 4.06 and 4.03. It's definitely an add for me around there, as my position size is still below neutral at 3.1%. For me, this stock is around 4% to be neutral around that price. Below 4, I will add to increase position size to 4.5% and 5% depending on how far it falls. Just current thoughts.
3 days ago
@mesoan, net income is important. Total EPS also important. Growth since peak EPS CAGR is only 3.5%. From 2014-2018, it's higher at 5.5%, so, it slowed down but still growing. I would rate C+ or B- - it's above average, but not spectacular, and from banks, we should not expect spectacular growth - otherwise, that is likely to mean the bank takes a very risky approach. What you want from banks is that long term steady growth that beats inflation, beats GDP growth, and I think better than 50/50 odds PBBANK can continue to do that over the next decade or two. The other thing from banks that we expect is long term resilience in earnings. That recovery after crashes, corrections and crisis. That banks are here to stay during our lifetime. For me, banks is for investing, not for trading. And it is to buy during market corrections and hold.
3 days ago
@thirai, I try not to trade sound businesses that pays good dividend yields because it's reduces my dividend income. I note you sold during mid 2022 when price ranges around 4.5 +/- 20 sen or so. From say Jun 2022 to today, PBBANK has paid 39 sen of dividends.
If one is an average trader who sold at 4.50 and lost out on 39 sen dividend, the same Buy and Hold investor now sees his average cost reducing from 4.50 in mid 2022, to 4.11 today. Additionally, he didn't incur sell commissions and didn't incur buy commissions, which is around 4-5 sen. Therefore the trader who sold at 4.50 will need price to fall back down to around 4.06 and buy back, when doing this, he's just neutral compared to the Buy and Hold investor.
Meaning, the longer one is away from markets and as PBBANK keeps paying dividends, the average cost keeps coming down to due receipts of dividends.
I do have a few trading stocks, where typically, they don't pay dividends but are cyclicals, with much larger price volatility and win bigger %s. For high dividend yield stocks like MAYBANK, or good dividend yield stocks like PBBANK, I don't trade them.
3 days ago
1288go:
> Public bank shares has ballooned to about 20bn shares. It's share dilution. Of course buy more to make up for dividends.
The shares ballooned (if my memory serves me right) in 2020 following a 1:5 share split exercise. It didn't dilute the shares of existing shareholders. I believe the management did the subdivision to make the share more affordable to retail investors.
3 days ago
DividendGuy67:
> If one is an average trader who sold at 4.50 and lost out on 39 sen dividend, the same Buy and Hold investor now sees his average cost reducing from 4.50 in mid 2022, to 4.11 today.
What you say is true. However, we typically move out of a position only when we see better alternatives. I liquidated my PBBank positions when it was trading around RM4.70 and used the proceeds to increase my position in CIMB, which, at that point, was trading around RM5.15. I based this decision purely on the PE Ratio, as PBBank's valuation seemed rich compared to CIMB's. In retrospect, this appears to have been a sound decision, as I regained the dividends lost with PBBank both as dividends and as DRP shares with CIMB.
Using the same strategy, I'm now gradually moving out of a couple of stocks that have performed very well in the last year or so and into PBBank and HLB/HLFG. My decision here is again based on my assessment of the growth prospects and valuations of these companies. This might seem like a poor short-term decision, given that the stocks I'm selling continue to increase daily, while those I'm buying are either stagnant or declining.
Btw, I read your chart-based analysis of PBBank. Even though I do not invest using Technical Analysis, I liked what I read.
3 days ago
Wow, at current price, shortish also dare to short?
Net short position for 24-5-24 ....19m shares 0.1%
https://www.bursamalaysia.com/misc/missftp/sblnt/NetShortPosition20240524.pdf?t=1716820118
3 days ago
@dividendguy
My concern is that the net interest income can't cover inflation. growing at 2.5% per year is quite pathetic, probably due to poor market. So when the economy picks up, hopefully PBB can continue to grow.
3 days ago
Read all of your comments! Basically l do agree with most of you, but, but l still insist that PB should payoff a good dividend in September. This has been fluctuating tremendously and since it’s a cash rich counter we don’t mind holding it instead of opting for FD. Also since it’s the second best bank it should keep to its status in terms of dividends. Forget about old cock Warren and mind you he doesn’t pay out dividend but the capital gains covers everything. Here there is so much instability thus shooing away investors so how to gain fr capital returns. So l hope the PB mx team should realise this and pump up the dividend otherwise investors are going to say BYE to them. Currently l don’t think l touch any other counter in Malaysia.
3 days ago
Public Bank loan growth likely at 5%-6% this year
https://www.thestar.com.my/business/business-news/2024/05/22/public-bank-loan-growth-likely-at-5-6-this-year
2 days ago
Thirai,
Share splits affect all shareholders. Your 1 becomes 5...it's in the books..
DividendGuy67, yes you are right holding for dividends.
I am concerned if capital growth is slow. Pbb probably very careful taking risky paths and they doing it slow and easy in Indo Chinese countries. Indo china is a different culture and need to be very careful there.
Have to look at undervalued good shares that deliver both dividends and Cap growth.
If course Pbb is a good add for dividends..
Thanks 🙏 guys for insights !
2 days ago
Not the time to buy yet! Will drop more! A earthquake has just striked PBb! Everything is in big mess and there is panic all over! 😭😭😭
1 day ago
The national team is in the process of acquiring PBBANK. Perhaps both parties have already agreed on the acquisition and purchase price, which is why there is continuous buying, yet the stock price keeps falling. Grab your tickets and get ready for the next takeoff.
1 day ago
The national team is in the process of keep acquiring PBBANK share %. Once the agreed quantity is reached and the main selling orders disappear, it is time to quickly increase the price.
3 hours ago
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