Despite Low Loan Growth, Public Bank's SME Plans Should Yield Results
Despite Low Loan Growth, Public Bank's SME Plans Should Yield Results
The bank's efforts to rejuvenate the SME segment are already showing promising results, with a 20% year-on-year increase in loan approvals for the first half of FY24. Public Bank has launched a competitive SME loan campaign and plans to expand its commercial units to bolster this segment further. Additionally, the bank is addressing loan yield compression concerns by diversifying into higher-yielding business loans, aiming to minimise the negative impact on net interest margins (NIM).Public Bank Berhad (Public Bank) continues to impress with its strategic adjustments and resilience, as reflected in its recent performance and future outlook. The bank's 2QFY24 results were in line with expectations, with core net profit rising by 8% quarter-on-quarter to RM1.78 billion, contributing to a 1H24 net profit of RM3.43 billion. This figure represents a 3% year-on-year increase and aligns closely with analysts' forecasts.
大衆銀行有限公司（Public Bank）的戰略調整和彈性繼續給人留下深刻的印象，這反映在其最近的表現和未來展望中。該銀行的 2QFY24 業績符合預期，核心淨利潤同比增長8％，至17.8令吉，使24年上半年的淨利潤達到34.3令吉。該數字同比增長3％，與分析師的預測非常一致。
In response to evolving market conditions, analysts maintained a BUY call, adjusting target price to RM5.16 from RM4.78. Analysts have emphasised the bank's robust dividend payout strategy and efforts to optimise its SME loan segment as key positive drivers. The revised target price is based on a forecasted FY25 price-to-book value ratio of 1.63x, up from 1.51x previously.
爲了應對不斷變化的市場狀況，分析師維持買入看漲期權，將目標價從4.78令吉調整至5.16令吉。分析師強調，該銀行強勁的股息支付策略和優化中小企業貸款領域的努力是關鍵的積極推動力。修訂後的目標價格基於預測的25財年市面價值比率爲1.63倍，高於之前的1.5倍。
Public Bank's management remains committed to navigating the current economic challenges while capitalising on growth opportunities. The bank's core themes include an upward revision of return on equity (ROE), significant investments in the SME segment to mitigate the impact of declining loan yields, and ongoing efforts to enhance dividend payouts. The bank is also focusing on optimising capital management and maintaining high asset quality amidst cost pressures.
大衆銀行的管理層仍然致力於應對當前的經濟挑戰，同時抓住增長機會。該銀行的核心主題包括向上修訂股本回報率（ROE），對中小企業領域進行大量投資以減輕貸款收益率下降的影響，以及持續努力增加股息支出。該銀行還專注於優化資本管理，在成本壓力下保持較高的資產質量。
The bank's efforts to rejuvenate the SME segment are already showing promising results, with a 20% year-on-year increase in loan approvals for the first half of FY24. Public Bank has launched a competitive SME loan campaign and plans to expand its commercial units to bolster this segment further. Additionally, the bank is addressing loan yield compression concerns by diversifying into higher-yielding business loans, aiming to minimise the negative impact on net interest margins (NIM).
該銀行振興中小企業領域的努力已經取得了可喜的成果，24財年上半年的貸款批准同比增長了20％。大衆銀行已經啓動了一項有競爭力的中小企業貸款活動，並計劃擴大其商業部門，以進一步支持該細分市場。此外，該銀行正在通過分散投資收益率更高的商業貸款來解決貸款收益率壓縮問題，旨在最大限度地減少對淨利率（NIM）的負面影響。
Despite low loan growth, analysts remain optimistic about Public Bank's future performance. The bank's strategic focus on enhancing the SME loan portfolio and its commitment to improving dividend payouts are seen as strong positives. The return of foreign investors and the bank's effective cost management also contribute to its appeal.
儘管貸款增長緩慢，但分析師仍對大衆銀行的未來表現持樂觀態度。該銀行的戰略重點是加強中小企業貸款組合，並承諾改善股息支出，這被視爲強有力的積極方面。外國投資者的回歸和該銀行有效的成本管理也增強了其吸引力。
The bank's target price reflects a cautious but optimistic outlook, with analysts predicting a 10.3% potential return based on the current share price of RM4.68. The anticipated total return, including dividend yield, stands at 14.4%.
該銀行的目標價格反映了謹慎但樂觀的前景，分析師預測，根據目前4.68令吉的股價，潛在回報率爲10.3％。包括股息收益率在內的預期總回報率爲14.4％。
Source: MIDF, Maybank,CGS, RHB
Title: 2QFY24 Results: SME Loans to Offset Yield Compression, 2Q24 results within expectations, A write-back in management overlay, Cause For More Optimism Ahead?
資料來源：MIDF、馬來亞銀行、CGS、RHB
標題：2QFY24 業績：中小企業貸款抵消收益率壓縮，24年第二季度業績符合預期，管理層回調，未來還有理由更加樂觀嗎？
譯文內容由第三人軟體翻譯。