Here’s a full breakdown on Public Bank Berhad (PBBANK – Bursa Malaysia):

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1. Why the Recent Uptrend?

Public Bank has attracted investor interest due to:
• Strong financial performance: Revenue grew ~10% to RM14 billion with stable EBIT margins, and EPS growing at ~9.6% per annum over three years. That signals solid and sustainable business growth.  
• Quality asset metrics: Low impaired loan ratio (0.62%) and high loan loss coverage (~169%) indicate excellent asset quality. 
• Provision write-back potential: Analysts highlight ample headroom for provisioning write-backs (management overlay ~RM1.7 billion), which could boost near-term earnings. 
• M&A expansion: The acquisition of 44.15% in LPI Capital Bhd for RM1.72 billion is strategically significant, likely enhancing earnings and insurance reach.   

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2. Latest Financial Results
• Q1 FY2025:
• Net profit rose 5.6% YoY, driven by stronger net interest and non-interest income and lower loan loss allowances. 
• Revenue climbed 7.4% YoY to ~RM3.56 billion. 

Despite a solid quarter, analysts have trimmed full-year earnings forecasts due to lower net interest margins (NIM), slower loan growth, and economic headwinds. Maybank IB has lowered FY2025/2026 targets by ~3–4% and revised the TP to RM5.05, while maintaining a “Buy” rating. Dividend yield remains attractive (~5.2–5.4%). 

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3. Dividend Payout & Valuation
• Dividend yield: Estimated at 5.2% (FY2025) and 5.4% (FY2026). 
• Payout Ratio: Gradually rising—from ~51% in 2019 to ~55.5% in 2023—signaling modest dividend growth potential. 
• Valuation: TA Research values the stock at RM4.90 (implied PBV ~1.53×, via Gordon Growth Model). 

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4. Foreign Ownership & Institutional Stake
• Foreign shareholding: Around 24.6%, slightly below its 5-year average (~28.5%)—leaving room for foreign capital inflows. Highest prior was ~39.5% in 2018. 
• Institutional dominance: Institutional investors hold approximately 42% of shares. 

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5. Mergers, Takeovers & Strategic Moves
• LPI Capital acquisition: Public Bank acquired 44.15% of LPI for RM1.72 billion (RM9.80/share), triggering a mandatory general offer (MGO) for the remaining shares. The move is seen as earnings-accretive and enhances insurance business synergy. Analysts expect a ~2–3% EPS uplift.     
• Teh family share sell-down: The estate plans to reduce its ~23.4% stake in Public Bank to 10% over five years via Restricted Offer for Sale, complying with regulatory caps. This may create some share overhang but is expected to be manageable due to gradual roll-out.  
• No other major M&A or merger announcements have surfaced recently. 

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Summary Table

Key Insights
Momentum Rebound
Driven by organic growth, asset quality, provision buffers, and strategic M&A.
Latest Results
Q1 FY25 net profit +5.6% YoY; lower margins prompt cautious forecasts.
Dividend
Yield of ~5.2–5.4%, payout ratio ~55%; rising gradually.
Valuation
Fair value around RM4.90 (TA Research); upside potential to RM5.05 (Maybank).
Foreign Ownership
~24.6%—moderate, with room for future inflows.
Rights & Control
Institutional holdings ~42%; Teh family reducing stake gradually.
M&A Activity
LPI acquisition strengthens insurance segment; no impending
Key Insights
Momentum Rebound
Driven by organic growth, asset quality, provision buffers, and strategic M&A.
Latest Results
Q1 FY25 net profit +5.6% YoY; lower margins prompt cautious forecasts.
Dividend
Yield of ~5.2–5.4%, payout ratio ~55%; rising gradually.
Valuation
Fair value around RM4.90 (TA Research); upside potential to RM5.05 (Maybank).
Foreign Ownership
~24.6%—moderate, with room for future inflows.
Rights & Control
Institutional holdings ~42%; Teh family reducing stake gradually.
M&A Activity
LPI acquisition strengthens insurance segment; no impending mergers.