Public Bank to expand further in Vietnam
Move will expand its network to 19 outlets by year-end
PETALING JAYA: Public Bank Bhd, the country’s third-largest bank by asset, plans to open six more branches in Vietnam this year, in line with its aim to expand its footprint regionally.
By end-2018, the group’s wholly owned unit Public Bank Vietnam Ltd (PBVN) plans to raise its total number of branches in Vietnam to 19, according to Public Bank managing director and chief executive officer Tan Sri Tay Ah Lek.
“There has always been an ongoing plan to expand the bank’s branch network and customer reach in Vietnam.
“Given the present operating environment in Vietnam, PBVN will continue to face keen competition and challenges in building its pool of human resources.
“PBVN will continue to adopt our strategy and prudent banking practices to further drive its growth in the retail banking sector,” Tay told reporters after Public Bank’s AGM.
PBVN became Public Bank’s wholly owned subsidiary in April 2016, following its transformation from a joint-venture bank then. Last year, PBVN established six new branches in Vietnam.
Apart from Vietnam and its home market of Malaysia, Public Bank has 79 branches in Hong Kong, four in China, 30 in Cambodia, four in Laos and three in Sri Lanka.
The group’s overseas operations registered a pre-tax profit growth of 10.8% to RM687.8mil in 2017, contributing about 9.7% to the bank’s pre-tax profit in 2017.
Meanwhile, in a statement issued yesterday, Public Bank founder and chairman Tan Sri Teh Hong Piow remains upbeat on the group’s outlook, moving forward.
“The group is confident that its strong fundamentals would enable it to stay resilient and flexible, as well as seize opportunities when they arise,” he said.
He said that against the backdrop of an increasingly challenging and complex operating environment, the group’s key priorities are to accelerate business and digital innovation, as well as pursue operational efficiency.
“The group’s business model building on its organic growth strategy in the retail banking business, coupled with its prudent credit policies as well as strong risk-management practices, would remain our key strengths to sustain continued business and profitability growth,” he said.
On Public Bank’s current capital position, Teh said the group would continue to proactively manage its capital to support its business growth strategies while optimising shareholders’ return.
As at end-2017, Public Bank’s common equity Tier-1 capital ratio, Tier-1 capital ratio and total capital ratio stood at 12.2%, 13% and 16%, respectively, after deducting the second interim dividend.