Public Bank posts earnings of Rm4.87bil in FY20

KUALA LUMPUR: Public Bank Bhd posted a lower net profit of Rm4.87bil in the financial year ended Dec 31,2020 (FY20), due to one-off day one net modification loss, negative effect of the reduction in the overnight policy rate (OPR) and higher loan impairment allowance.

In a statement, the group said its pre-tax profit for FY20 decreased by Rm849.1mil or 11.9% to Rm6.28bil, compared with Rm7.13bil in FY19. Net profit fell by Rm639.9mil or 11.6% to Rm4.87bil, from Rm5.51bil in FY19.

Chairman Tan Sri Teh Hong Piow said: “2020 was a year full of unprecedented challenges. The onset of Covid-19 pandemic inflicted significant economic disruptions and uncertainties.

“Coupled with several OPR reductions during the year, it had placed further pressure on the banking sector.

“Against this backdrop, the group was still able to show steady performance and sustain its profitability.”

Teh said Public Bank continued to maintain its resilient fundamentals in 2020, delivering net return on equity of 11.2%, while sustaining its low gross impaired loan ratio of 0.4% as well as efficient cost-to-income ratio of 34.6%.

In view of the sustained profit performance, Teh said the board has declared a dividend of 13 sen per share, which amounted to a total dividend payout of Rm2.52bil, representing 51.8% of the group’s net profit for 2020.