2. TAN SRI TEH HONG PIOW Flagship: Public Bank Bhd Net worth: RM25.28bil

TAN Sri Teh Hong Piow of

Public Bank Bhd has emerged as the country’s second richest backed by a 19.5% increase in the shares of the bank. The stock, a consistent performer on Bursa Malaysia with high dividend payouts year after year, closed at RM24.76 as of

Dec 31 for a market cap of

RM96.1bil – making it the second-most valuable banking stock after Malayan Banking Bhd.

The 89-year-old banker’s 23.4% stake in the bank, which he founded in 1966, is worth RM22.48bil.

Besides Public Bank, Teh also owns a 44.2% stake in insurance company LPI Capital Bhd, which was valued at RM6.27bil as at the end of last year.

These stakes collectively put his worth at RM25.3bil, up 17.3% or RM3.7bil from 2017’s wealth count.

Teh, who officially retired as non-executive chairman of the bank last year, can look back at the bank and feel fulfilled. While he remains on the board as chairman emeritus and adviser, 2019 marks a new era for Public Bank that is now professionally run.

How its management would ride through the more challenging economic climate ahead would be closely watched by all.

Not many can match the veteran banker’s achievement of steering the bank with unbroken profitability over five decades even during all the financial crises.

At 2.32 times price-to-book value, the bank is among the most expensive in the region.

The premium it commands is largely due to the high returns it has given to its shareholders on a consistent basis.

It is also one of the most efficient in the industry with a cost-to-income ratio of just 33%.

Public Bank is predominantly a retail bank, so any slowdown in domestic consumption would affect its loan growth, while stiff competition in the deposit space could lead to a larger-than-expected compression in overall margins, say analysts.

For the financial year ended Dec 31, 2018 (FY18), Public Bank posted a net profit of RM5.6bil.

It achieved a healthy loan growth of 4.2% in 2018 but for this year, the bank says it is expecting loan growth to come in at the lower end of its targeted 4%-5% range.