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An Investor’s Quick Overview Of Public Bank Berhad’s Track Record In Growing Its Business

Public Bank Berhad (1295.KL) is the third largest financial institution in Malaysia by total assets (as of 31 December 2017), behind Malayan Banking Berhad (1155.KL) and CIMB Group Holdings Berhad (1023.KL).

One of the things that I like to do when analysing a company is to study its track record. The past is no guarantee of the future. But historical information is the most reliable thing that we can use as our basis to forecast what lies ahead.

And this brings me to the main purpose of this article, which is to have a quick overview of Public Bank’s historical business growth. The table below is a snapshot of the company’s important financial metrics from FY2013 (financial year ended 31 December 2013) to FY2017 (financial year ended 31 December 2017):

Source: Public Bank Annual Reports

Here are a few points worth noting:

1) First of all, revenue increased from RM 5.7 billion in FY2013 to RM 7.3 billion in FY2017 , up by 29.4% during the period. This translates to a CAGR (compound average growth rate) of 6.7%.

2) Secondly, net profit attributable to equity holders has grown from RM 4.1 billion in FY2013 to RM 5.5 billion in FY2017, up by 34.6% during the period. This translates to a CAGR of 7.7% in the last five years.

3) Thirdly, Public Bank’s dividend per share has risen over the years too, up by 17.3% during the time frame. This translates to a CAGR of 4.1%.

In sum, I think Public Bank delivered a commendable track record in the past five years by growing its revenue, profitability and dividend per share. What’s more, it managed to do so by maintaining a stable return on average assets throughout the period.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.