Public Bank Q1 profit meets forecast

The Cambodia News.Net

KUALA LUMPUR, April 15 — Public Bank met market estimates for quarterly results as the banking industry heads for a strong earnings recovery this year.

 

The country’s third-largest lender by assets, which also owns banks in Hong Kong and Cambodia, said first-quarter net profit grew 16 per cent to RM685 million from RM589 a year ago.

The net profit figure accounts for 24 per cent of consensus estimates for the full-year. Malaysian analysts generally do not provide quarterly earnings forecasts.

Ahead of the earnings announcement, the average forecast by 19 analysts tracked by Thomson Reuters I/B/E/S for Public Bank’s 2010 net profit was RM2.9 billion, marking a 15 per cent rise from 2009.

Banks are among the best market performers so far this year. The finance sector index has risen 9 per cent year-to-date versus a 5 per cent gain in the wider market.

Public Bank wants to “maintain healthy returns to its shareholders” while keeping its capital ratios at “a healthy level” to support growth, Public Bank chairman Teh Hong Piow said in a statement today.

The bank “will pursue continued proactive capital management,” said Teh, as global banking regulators mull higher capital requirements for banks under the Basel III proposals.

Analysts say Public Bank may need to sell new shares to shore up its capital position based on the proposals.

Malaysian banks are expected to see strong earnings expansion this year helped by the economic recovery.

Top lender Maybank and second-ranked CIMB are set to report quarterly earnings in May. — Reuters