Kuala Lumpur: Public Bank Bhd will witness an increasingly challenging operating environment in its quest to sustain earnings momentum in future, says Alliance Research.This is in view of the maturing property segment coupled with the bank being not well positioned to fully capitalise on the Economic Transformation Programme (ETP) related loans and investment banking deals, the research house said.
It also said the ongoing net interest margin compression due to intense competition in the retail loan segment and deposit would impact it.
"As such, we assert that the group's return on equity (ROE) has peaked and is on a declining trend going forward. This is due to the decelerating earnings momentum and restrictions on the ability to engage in active capital management to enhance its ROE," it said in a research note Tuesday.
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The Sabah Development Corridor (SDC) has boosted the investment climate in the state.
ReplyDeleteMassive investment in sectors like oil and gas, oil palm, fisheries, livestock and tourism have already started to pour in from within and outside the country.
SDC projects are now part of the Government Transformation Programme (GTP) and the Economic Transformation Programme (ETP).
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