Kuala Lumpur: The Public Bank Group recorded pre-tax profit of RM3.55 billion for the first half of the year, a growth of 5.5pc from the corresponding period in 2017. Net profit attributable to shareholders increased by 8.6pc to RM2.80 billion. The Founder and Chairman of Public Bank, Tan Sri Dato' Sri Dr. Teh Hong Piow said:"The Group was able to sustain good business momentum in the first half of 2018.
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The higher profit for the period was largely driven by growth in its loan and deposit business, with further impetus from a 4.9pc growth in non-interest income."Teh added, "Sustained business strength continued to place the Group in a strong competitive position, with its net return on equity standing at 15.0pc. Similarly, the Group's cost-to-income ratio of 33.1pc and gross impaired loans ratio of 0.5pc remained the best in the domestic banking industry."He announced a first interim dividend of 32 sen per share, which will result in a total dividend payout of RM1.24 billion. The first interim dividend will be paid on Sept 19 based on the dividend entitlement date of Sept 7."
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In the first half of 2018, the Public Bank Group's total gross loans rose by an annualised rate of 4.1pc to RM310.7 billion. On the domestic front, total loans grew at an annualised rate of 4.3pc to RM288.3 billion. The Group has continued to sustain its leading position in the financing business focusing on residential properties and commercial lending to small and medium enterprises in the domestic banking industry.
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On deposit taking, the Public Bank Group's total customer deposits grew at an annualised rate 6.7pc, led by the resilient growth in domestic deposits which increased at an annualised rate of 7.4pc."The Group exercises prudent liquidity management and always ensures the stability of its funding sources. As at the end of June 2018, the Group's gross loan to fund and equity ratio stood at a healthy level of 79.4pc," he said. The non-interest income segment has remained a main source of revenue to the Public Bank Group. In the first half of 2018, non-interest income increased by 4.9pc, largely contributed by the Group's unit trust business as well as stable growth in its banking transactional fee income. "In the first half of 2018, Public Mutual, the Public Bank Group's wholly-owned unit trust management subsidiary, continued to deliver favourable result, with its pre-tax profit growing by 9.0pc compared to the corresponding period in 2017. As at end-June 2018, Public Mutual managed a total of 144 unit trust funds, with a total net asset value of RM80.2 billion. Public Mutual's market presence remained significant, with its market share standing strong at 40.3pc in the domestic private unit trust industry," he said. The Public Bank Group's cost-to-income ratio remained stable at 33.1pc in the first half of 2018, staying well below the banking industry's average cost-to-income ratio of 44.8pc. This reflects the Group's unwavering strong commitment to high operational efficiency. "High efficiency and productivity have long been a cornerstone of the Group's competitive strength. The Group will remain steadfast in sustaining strong cost discipline, while proactively pursuing growth along its business strategy." "The Public Bank Group continued to sustain its strong asset quality with its gross impaired loans ratio staying low and stable at 0.5pc, which remained the best when compared to the Malaysian banking industry's gross impaired loans ratio of 1.6pc,"he said. Further, the Group's loan loss coverage stood high at 117.3pc. Including the regulatory reserves of RM2.0 billion, the loan loss coverage was at 247.9pc.For the first half of 2018, overseas operations contributed 8.4pc to the Public Bank Group's pre-tax profit, led by businesses in Public Financial Holdings Limited Group in Hong Kong and Cambodia Public Bank Plc."Over the years, the Group has been actively growing and expanding its business in the region through diversifying and enhancing its banking products and services and expansion of branches, particularly in Indo-China. As at the end of June 2018, the Group has built an extensive network of 82 branches in Hong Kong and the People's Republic of China, and 48 branches in Indo-China. This includes the set-up of 6 new branches in Vietnam in 2017 with another 5 more branches to be opened in 2018," he said.Stay up-to-date by following Daily Express’s Telegram channel.
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