Public Bank's stock price hit an all-time high today, breaking through the RM5.00 mark to become the largest bank stock by market cap on Bursa Malaysia.
Foreign investors have been heavily buying Public Bank shares for five consecutive trading days, with cumulative net buying exceeding RM1 billion. Analysts believe foreign investors favor Public Bank for the following reasons:
1. Excellent asset quality: NPL ratio of only 0.4%, well below industry average 2. Stable dividend policy: Dividend yield of about 4%, attractive 3. Significant digital transformation results: Mobile banking users grew 40% YoY
Public Bank founder Tan Sri Teh Hong Piow said the bank will continue to focus on retail banking and increase expansion in ASEAN markets.
Analysts generally give Public Bank a "Buy" rating, with target prices raised to RM5.50-RM6.00.