Pub­lic Bank’s third quar­ter earn­ings up 3% on higher in­come

The Sun (Malaysia) - - SPEAK UP -

PETALING JAYA: Pub­lic Bank Bhd’s net profit for the third quar­ter ended Sept 30, 2016 rose 3% to RM1.24 bil­lion from RM1.20 bil­lion a year ago due to higher net in­ter­est in­come and in­come from the Is­lamic bank­ing busi­ness.

Rev­enue jumped 2.4% to RM5.03 bil­lion com­pared with RM4.91 bil­lion in the pre­vi­ous cor­re­spond­ing quar­ter.

For the nine months pe­riod, its net profit in­creased by 4.3% to RM3.72 bil­lion from RM3.57 bil­lion in the pre­vi­ous cor­re­spond­ing pe­riod due to higher net in­ter­est in­come and higher in­come from Is­lamic bank­ing busi­ness.

Rev­enue grew by 5.4% to RM15.02 bil­lion from RM14.25 bil­lion a year ago, mainly at­trib­uted to the group’s con­tin­ued healthy loan and de­posit growth.

Pub­lic Bank founder and chair­man Tan Sri Dr Teh Hong Piow ( pix) said in a state­ment the group has demon­strated the abil­ity to gen­er­ate sta­ble prof­itabil­ity when the op­er­at­ing en­vi­ron­ment con­tin­ued to present chal­lenges to the busi­ness.

This was at­trib­uted to the group’s solid strat­egy in strength­en­ing its niches in the re­tail bank­ing busi­ness.

For the first nine months of 2016, the Pub­lic Bank group’s to­tal loans grew at an an­nu­alised rate of 7.2% to RM288 bil­lion. Do­mes­ti­cally, the group con­tin­ued to achieve above-in­dus­try loan per­for­mance, with its do­mes­tic loan growth stand­ing at an an­nu­alised rate of 7.8% com­pared to the do­mes­tic bank­ing in­dus­try’s growth of 2.8%.

Pub­lic Bank achieved an an­nu­alised 7.4% growth in to­tal de­posits for the first nine months of 2016.

The group’s lend­ing ac­tiv­i­ties con­tin­ued to be driven by the ex­ten­sion of credit mainly for the pur­chase of res­i­den­tial prop­er­ties and pas­sen­ger ve­hi­cles, as well as to the small and medium en­ter­prises.

“Against the back­drop of weak con­sumer and busi­ness sen­ti­ment, the group’s loans and de­posits busi­ness has fared well. As a re­sult, the group con­tin­ued to main­tain a healthy loan-tode­posit ra­tio of 90.2% as at endSeptem­ber 2016,” the bank said in its state­ment.

The Pub­lic Bank group con­tin­ued to up­hold its strong as­set qual­ity record, with the low­est gross im­paired loan ra­tio of 0.5% as at the end of Septem­ber 2016, com­pared with the bank­ing in­dus­try’s ra­tio of 1.7%.

For the Malaysian econ­omy, the bank said, while head­winds con­tinue to pose down­side pres­sure to growth, ex­pec­ta­tions are for a healthy ex­pan­sion given the sup­port from do­mes­tic de­mand.

“The Pub­lic Bank group’s sta­ble per­for­mance for the first nine months of 2016 has reaf­firmed the proven busi­ness strate­gies of the group in with­stand­ing chal­lenges in the op­er­at­ing en­vi­ron­ment.

“The group sees pru­dent risk man­age­ment, sound cor­po­rate gov­er­nance and sus­tain­ing su­pe­rior as­set qual­ity con­tinue to be the keys to main­tain­ing trust and con­fi­dence among stake­hold­ers and in en­sur­ing long-term sus­tain­abil­ity of the group’s prof­itabil­ity.”

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.