PUBLIC BANK FY2010 RESULT

1. Let's compare PUBLIC BANK result against the average analyst expectation for FY2010:

Net income: Average analyst expectation = RM2962m, Real = RM3048m
Earnings per share or EPS: Average analyst expectation = 89.4 sen, Real = 87.18sen
Overall, the FY2010 Result is within analyst expectation with net income 2.9% better than expected but EPS 2.5% lower than expected.

2. Comparing FY2010 against FY2009 shows that revenue improved 13.6% while net income increased 21.1%. In the Press Release gathered from Bursa, Public Bank's Chairman stated that the improved financial performance was mainly driven by the strong growth in net interest and finance income and higher non-interest income, coupled with lower loan impairment allowances.

3. Average analyst target price: RM13.86 as of time of writing

4. 2nd interim dividend of 33 sen was announced, ex-date = 10-Feb-2011

5. My view: Overall, the result is within market expectation. However, investors may assign some upside to PBBANK due to the 33 sen gross dividend announced. Or at least the 33 sen dividend will serve as a good share price support for the stock.