Public Bank's acquisition is a strategic move to grow its securities trading business using its existing Vietnamese clientele. RHB Bank's divestment aligns with its strategy to focus on markets where it has a stronger presence.
Citi maintains a positive view on regional banks like Western Alliance, First Horizon, Popular and Bank OZK for the upcoming Q4 earnings season. Analyst Gerlinger believes these banks could utilize their high capital to fuel growth via share repurchases.
Popular's low payout ratio and substantial earnings growth indicate that its dividend payment is sustainable. Furthermore, the rapid growth of both earnings and dividends per share presents Popular as a promising and potentially profitable dividend stock worth further investigation.
Analysts expect steady earnings from Public Bank despite Q4 challenges. The bank's defensive qualities are seen as a strength amid uncertainties, with no significant net interest margin compression forecasted from 2022's 2.39%.
Public Bank Bhd management anticipates persistent demand for financing in property, car ownership, and SME businesses. The agility, healthy capital, liquidity position, and prudent loan loss reserves of the group are slated to aid in profit generation through challenging times.