Public Bank's Goodwill Impairment Unlikely to Have Material Impact
Dow Jones
Oct 19
0431 GMT - Public Bank's goodwill impairment at its Hong Kong unit is unlikely to have any material direct impact on its 3.5 billion ringgit capital-return plan, says CIMB Securities analyst Ei Leen Tan in a note. The non-cash charge could have limited implications for capital strength and dividend capacity. Public Bank's 3Q core net profit is forecast at 1.85 billion ringgit, nearly the same as a year earlier, supported by wealth management and FX income and partly offset by narrower net interest margins, she says. Tan cuts her 2026-2028 net profit estimates by 2.1%-13% to factor in the one-off goodwill impairment and a weaker NIM outlook. CIMB lowers the target price to 5.35 ringgit from 5.50 ringgit but keeps a buy rating on the stock. Shares are 2.7% lower at 4.70 ringgit.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.