Public Bank says 2Q net profit up at RM1.38b, pays 7.5 sen dividend
KUALA LUMPUR (Aug 27): Public Bank Bhd reported today that its second-quarter net profit rose 38% to RM1.38 billion from RM1.002 billion a year earlier on higher net interest income, net income from Islamic banking and net fee and commission income as the group’s financial performance improved from a lower base effect a year earlier during which the group contended with Covid-19 relief measures-driven modification loss and the negative effect of Malaysia’s overnight policy rate (OPR) reduction.
In a statement to Bursa Malaysia today, Public Bank said its revenue rose to RM4.92 billion for the second quarter ended June 30, 2021 (2QFY21) from RM4.74 billion a year earlier.
Public Bank said the higher net interest income, net income from Islamic banking and net fee and commission income “were partially offset by higher loan impairment allowances” for 2QFY21 in anticipation of the potential effect of the Covid-19 pandemic besides “lower investment income” and higher operating expenses.
The group declared a dividend of 7.5 sen a share for 2QFY21.
In banking-sector terminology, modification loss refers to the loss registered by banks due to changes in borrowers’ loan agreements with the banks due to factors including a loan-repayment moratorium.
For the first half ended June 30, 2021 (1HFY21), Public Bank said cumulative net profit rose to RM2.91 billion from RM2.33 billion a year earlier despite lower revenue at RM9.95 billion compared with RM10.25 billion previously.
In quarterly terms, Public Bank said its 2QFY21 net profit fell 9.5% to RM1.38 billion due to higher loan impairment allowances and lower net fee and commission income.
“[Looking ahead,] the Public Bank group would continue to ensure that it remains well capitalised and well funded to support its business, while safeguarding the interests of its stakeholders. The group’s healthy capital and liquidity position, coupled with its resilient asset quality and prudent loan loss reserves, will enable the group to navigate through the challenges ahead.
“For long-term sustainability, the Public Bank group will continue to enhance its service delivery standards and infrastructure, leveraging the advancement of technology to provide seamless delivery of banking services across its multi-delivery channels,” the group said.
At Bursa’s 12.30pm break today, Public Bank’s share price settled unchanged at RM4.16, giving it a market value of about RM80.75 billion.
Public Bank has 19.41 billion issued shares, according to its latest quarterly financial report.
In a separate Bursa filing, Public Bank said its 7.5 sen a share dividend will be paid on Sept 23, 2021.
The ex-date for the first interim dividend for FY21 falls on Sept 13, 2021, according to the group.
HDFC Bank share price: Buy HDFC Bank, target price Rs 1859: Angel Broking
Angel Broking has buy call on HDFC Bank with a target price of Rs 1859. The current market price of HDFC Bank Ltd. is Rs 1559.75.Time period given by analyst is one year when HDFC Bank price can reach defined target. HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 862306.35 Crore).For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 38933.63 Crore, down -4.83 % from last quarter Total Income of Rs 40909.49 Crore and up 6.09 % from last year same quarter Total Income of Rs 36698.59 Crore. The bank reported net profit after tax of Rs 7922.09 Crore in latest quarter.HDFC bank is India’s largest private sector bank with an asset book of Rs. 11.3 lakh crore in FY21 and deposit base of Rs. 13.4 lakh crore. The Bank has a very well spread out book with wholesale constituting ~54% of the asset book while retail accounted for the remaining 46% of the loan book. Q1FY22 numbers were impacted due to the second Covid wave which has led to an increase in GNPA/ NNPA by 15/8bps QoQ to 1.5% and 0.5% of advances. Restructured advances at the end of the quarter stood at 0.8% of advances as compared to 0.6% in Q4FY21. The bank posted NII/PPOP/PAT growth of 8.6%/18.0%/16.1% for the quarter despite higher provisioning on the back of strong loan growth of 14.4% YoY. NIMs for the quarter declined by~10bps sequentially to 4.1% due to interest reversals and change in product mix. The management has indicated that 35-40 days of collections had been lost, but expects healthy recoveries from slippages in 2QFY22 which should lead to lower credit costs going forward. Given best in class asset quality and expected rebound in growth from Q2FY22 we are positive on the bank given reasonable valuations at 3.0xFY23 adjusted book which is at a discount to historical averages. The brokerage values the stock at 3.7xFY23 adjusted book and arrive at a target price of Rs. 1859.Promoters held 26 per cent stake in the company as of March 31, 2021, while FIIs held 40.1 per cent, DIIs 20.7 per cent and public and others 13.2 per cent.
Rakesh Jhunjhunwala portfolio: Big Bull acquires 1.59% stake in this PSU bank
Rakesh Jhunjhunwala portfolio: Those retail stock market investors, mutual funds (MFs) and institutions, who follow Rakesh Jhunjhunwala stocks for value picks, there is a piece of good news for them. The ‘Warren Buffett of India’ has acquired a 1.59 per cent stake in Canara Bank during April to June 2021 quarter. Big Bull investing in Canara Bank became public from the public sector bank’s shareholding pattern available with the BSE on its official website — bseindia.com.
Rakesh Jhunjhunwala shareholding in Canara Bank
As per the shareholding pattern of Canara Bank for the April to June 2021 period, Big Bull has bought 2,88,50,000 Canara Bank shares, which is around 1.59 per cent of the net Canara Bank shares.
Canara Bank is the third company in which Rakesh Jhunjhunwala acquired a stake during April to June 2021 quarter. He bought stakes in Steel Authority of India Limited (SAIL) and Indiabulls Housing Finance during Q1 FY22.
Canara Bank shares rose around 2 per cent on Tuesday — the day when the Canara Bank shareholding pattern was shared by BSE on its website. In the last month, Canara Bank share price has shot up 6.31 per cent.
Canara Bank share price today at NSE is ₹153.45 (at 9:23 AM) — down by near 1.45 per cent from its Tuesday close of ₹155.70.
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