Posted by fruni > 2017-05-15 11:46 | Report Abuse

Can you please do a discussion regarding Public Bank succession planning and how it will impact shareholders? Much appreciated!

Posted by pussycats > 2017-05-16 08:18 | Report Abuse

Yup, Public Bank succession planning is vry important. Pls discuss this. No one can last forever

Posted by Jonathan Keung > 2017-05-16 09:31 | Report Abuse

at this point of time. i prefer CIMB

Posted by 3iii > 2017-05-16 10:51 |

Post removed.Why?

Posted by goodluck999 > 2017-05-16 15:11 | Report Abuse

you need to remember.. PBB is one of the KLCI index members .. that is the main reason its share price cant move much for now..if PBB cant adapt into fintech and digital banking , sooner or later.. its value will be diluted.. lets wait and see.

Posted by goodluck999 > 2017-05-16 15:14 | Report Abuse

of course it is a well managed bank or else how it could stay profitable for the past 30 years CONSECUTIVELY..the management is the key..we will never know the quality of successor could be comparable to the founder.. founder is getting older now. this is another downside i could see..

Posted by 3iii > 2017-05-16 17:11 | Report Abuse

The succession issues have been discussed by many for a decade or so. As far as I know, this has not been beneficial for those who have been out of this stock for the last decade for the stated succession reason. For those who were not invested into PBB for the last decade, the opportunity costs have been a large one (except for those who invested and had better gains in another stock).

Posted by 3iii > 2017-05-16 17:26 | Report Abuse

FY HPr LPr adjDPS(sen)

31-Dec-16 20.10 18.48 57.69
31-Dec-15 19.44 17.40 55.7
31-Dec-14 20.93 17.44 50.8
31-Dec-13 19.28 14.92 46.91
31-Dec-12 15.91 12.71 45.11
31-Dec-11 13.18 11.32 43.3
31-Dec-10 12.61 10.60 52.24
31-Dec-09 10.79 6.68 48.64
31-Dec-08 11.14 7.29 47.54
31-Dec-07 10.40 7.05 64.77


The above shows the adjusted share prices of PBB over the last years and the adjusted dividends over the same period. The share prices and the dividends are all adjusted for capital changes to reflect the latest number of shares outstanding.

For those who were not invested into PBB the last 10 years, they would have missed the capital appreciation of the last decade and the dividends paid out by this company for the same period.

A huge opportunity cost indeed.

Many avoided PBB for what I think is a rather "irrational" reason that its founder is so elderly and the succession plan is not in placed.

PBB is a big corporation, run by professionals.

Posted by 3iii > 2017-05-16 17:33 | Report Abuse

The compound annual return for those who invested into PBB in 2007 and holding until today, is a low of 9.2% to a high of 13.5%.

Posted by 3iii > 2017-05-17 08:18 | Report Abuse

How can you get better returns from your investment into PBB?

Can you achieve 15% compound annual return over the 5 years or 10 years of investing into this stock?

Yes, if you do the followings:

1) Reinvest the dividends. Reinvesting the dividends allow more of your money to capture the earnings power of PBB; that is, you are putting more money to work harder for you.

2) Avoiding buying when PBB is obviously high. Look at its average PE. Only buy when PBB is available at a price lower than its average PE. The lower you pay to own the stock, the better is your return.

3) Selling PBB when it is obviously very highly priced. You may wish to do so, provided you also buy back PBB when it is available at lower prices. The difference in the selling and buying prices give you additional return on your investment in PBB. However, this strategy is difficult to implement. After selling your shares, you may not be able to buy them back at prices below your selling prices. Therefore, you will do fine too, should you not choose to implement this strategy.