Stocks Investing – My Road to Wealth & to Help People

0118 GMT [Dow Jones] STOCK CALL: Citigroup keeps Buy call on Public Bank (1295.KU) with MYR12.53 target price after banking group announced 51% on-year rise in 1Q net profit to MYR717.4 million. Citigroup notes earnings in line with consensus after stripping out MYR200 million goodwill payment from ING as part of bancassurance/wealth management alliance. Among positives, domestic loans growth still strong at 5.3% on quarter vs 5% previously, domestic consumer growth maintained at 3.8%, annualized NPL formation low at 0.25%, high loan loss coverage of 132% and small NIM contraction of 2bps despite stiff competition. “Our investment thesis for Public Bank remains intact – good solid loan growth with strong asset quality. Management is still committed to a high dividend payout this year – our assumed dividend payout of 80% translates to a yield of nearly 7%,” says Citigroup in report. Share flat at MYR10.90. (VGB)