Public Bank achieved pre-tax profit of RM5.16 billion
KUCHING: For the first nine months of 2017 (9M17), Public Bank Group recorded an increase in pre-tax profit at RM5.16 billion, representing 8.4 per cent growth compared with the corresponding period in 2016.
Over the same period, net profit attributable to shareholders increased by seven per cent to RM3.98 billion.
In a press statement, Public Bank Bhd (Public Bank) noted that Public Bank Group’s sustained business momentum continued to be driven largely by its healthy growth in its loans and deposits business, generating eight per cent growth in its net interest income while noninterest income saw a healthy growth of 7.6 per cent during the period.
Public Bank founder and chairman Tan Sri Dr Teh Hong Piow said, “The macro environment and the more stringent regulatory requirements have presented many challenges to the banking business.
“Notwithstanding this, the Public Bank Group’s strategy has continued to deliver values and returns. The group’s ability to sustain its business performance in this challenging market condition demonstrates its underlying strength as reflected in the Group retaining its competitive position.”
Teh added, “The Public Bank Group continued to outperform the Malaysian banking industry as reflected in its key performance indicators.
“As at the end of September 2017, the group’s net return on equity stood at 15.4 per cent with an efficient cost-to-income ratio of 32.8 per cent, while the group’s gross impaired loan ratio remained low at 0.5 per cent.”
In 9M17, the Public Bank Group’s total loans recorded 3.3 per cent annualised growth to RM301.3 billion. The group’s domestic loans portfolio grew at a higher annualised rate of 4.6 per cent, as compared to the banking industry’s annualised growth rate of 3.5 per cent.
“The Public Bank Group continued to focus on the financing for the purchase of residential properties, passenger vehicles and lending to small and medium enterprises, which remained our major sources of income.
“The group has also continued to retain leading market share in these lending segments,” commented Teh.
On deposit-taking, the Public Bank Group’s total deposits grew at an annualised rate of 5.4 per cent to RM322.6 billion over 9M17.
On the domestic front, total deposits grew at an annualised rate of 5.7 per cent as compared to 3.7 per cent annualised growth recorded in the domestic industry’s total deposits.
In 9M17, the Public Bank Group’s non- interest income recorded a healthy growth of 7.6 per cent, mainly attributed to the favourable growth in income from the group’s unit trust management business, as well as fee income from its transactional banking services.
Public Mutual Bhd ( Public Mutual), the Public Bank Group’s wholly- owned subsidiary, recorded 15.5 per cent growth in profit in 9M17, and continued to maintain its pole position in the domestic private unit trust industry.
As at the end of September 2017, Public Mutual captured an overall retail market share of 41.8 per cent.
With five new unit trust funds launched over the first nine months of the year, Public Mutual currently manages a total of 138 funds with a total net asset value of RM78.5 billion under its management as at the end of September 2017.