The analyst rating is based on PSBC's 1.7% year-on-year growth in net profit for the fourth quarter, driven by increased operating income and improved efficiency. Despite a slight rise in the non-performing loan (NPL) ratio, it remains the lowest among peers, and the provision coverage ratio is strong. The broker finds PSBC's current valuation attractive due to its solid asset quality and stable dividend payout, justifying a higher price-to-book (PB) ratio. BOCI has slightly reduced its target price but maintains a Buy rating.
