A+ A A-
Search From :
Between :
Public Bank Group Achieved 12.6% Net Profit Growth In The First Quarter of 2018

For Immediate Release

2 May 2018

Public Bank Group Achieved 12.6% Net Profit Growth In The First Quarter of 2018
 
Chairman’s Review
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow announced today that, “The Public Bank Group has set a positive start for the year and achieved 12.6% growth in its net profit attributable to shareholders to RM1.41 billion for the first quarter of 2018, as compared to RM1.25 billion achieved in the previous corresponding period. Pre-tax profit grew by 10.0% to RM1.79 billion over the same period.”
 
The Public Bank Group’s profit growth for the first quarter of 2018 continued to be underpinned by the sustained growth of 4.0% in the Group’s net interest income, complemented by a strong growth of 15.6% in non-interest income. 
 
Tan Sri Teh added, “This resulted in a continued favourable set of financial performance indicators, as reflected in the Group’s net return on equity of 15.2%, gross impaired loans ratio of 0.5%, and cost-to-income ratio of 32.6%, which have remained the best in the domestic banking industry.”
 
Sustaining Momentum in Loans and Deposits
 
The Public Bank Group’s core revenue continued to be driven by its healthy growth in loans and deposits business. In the first quarter of 2018, total gross loans of the Group increased at an annualised rate of 3.0%, with domestic loans growing faster at an annualised rate of 5.0%. The Group continued to capture major domestic market share in the financing of residential properties and commercial lending to small and medium enterprises.
 
In the deposit-taking business, the Group achieved an annualised 8.3% growth in total customer deposits for the first quarter of 2018, while domestic deposits grew at an annualised rate of 10.2%.
 
Tan Sri Teh commented that, “Competition in the financing and deposit market had remained intense. However, the Public Bank Group was able to sustain a favourable market position, which continued to generate revenue contributing to the Group’s profit growth.”
 
“As reflected by its gross loan to fund and equity ratio of 79.9%, the Group’s financing growth has remained well supported by its healthy funding structure. Further, the Group has remained vigilant and placed great emphasis on maintaining a healthy liquidity position, in the face of the challenging operating environment and stringent liquidity regulatory requirement.” said Tan Sri Teh.
 
Sustaining strong momentum in Non-interest Income
 
The Public Bank Group continued to achieve good performance in growing its non-interest income, with a strong growth of 15.6% in the first quarter of 2018 compared to the corresponding period a year ago. This was mainly attributed to the commendable growth of income in the Group’s unit trust business and foreign exchange business, as well as higher investment income coupled with a healthy growth of banking transactional fee income.
 
Tan Sri Teh said, “In the first quarter of 2018, Public Mutual, the Public Bank Group’s wholly-owned unit trust management subsidiary, recorded an impressive pre-tax profit growth of 16.6%. The favourable performance was underpinned by its strong market position, supported by a total number of 142 unit trust funds under its management, with a total net asset value of RM81.9 billion, capturing 41.1% of retail market share in the domestic private unit trust industry.”
 
Prudent Cost Management
 
The Public Bank Group’s ongoing initiatives on enhancing productivity and prudent cost management continued to deliver efficient cost optimisation, with the cost-to-income ratio sustained at 32.6% in the first quarter of 2018. The Group’s cost-to-income ratio remained well below banking industry’s average cost-to-income ratio of 44.8%.
 
Tan Sri Teh highlighted that, “In the face of rising prices and cost of compliance, increasing expenses are inevitable. However, the Public Bank Group’s long-embedded prudent cost management has built buffers and strong foundation to meet the challenges, and enabled the Group to sustain a track record of efficiency and productivity.”
 
Upholding Strong Asset Quality
 
The Public Bank Group recorded a stable gross impaired loans ratio of 0.5% as at the end of March 2018. As compared to the Malaysian banking industry’s gross impaired loans ratio of 1.6%, the Group continued to achieve the best asset quality among domestic peers.
 
In 2018, the Public Bank Group will continue to emphasise on sustaining its superior asset quality. Tan Sri Teh highlighted, “Resilient asset quality has long formed the cornerstone of the Group’s robust fundamentals. Prudent credit risk management has provided stakeholders with long term confidence on the Group’s business sustainability.”
 
With effect from 1 January 2018, the Group has adopted the Malaysian Financial Reporting Standard 9 (“MFRS 9”) which is a more forward-looking based provisioning. Due to the strong asset quality, the Group’s credit cost remained low at 0.09% in the first quarter of 2018. As at the end of March 2018, the Group also continued to maintain a healthy loan loss coverage ratio of 125.2%. Including additional regulatory reserves set aside of RM2.0 billion, the Group’s loan loss coverage ratio would be 261.0%. 
 
Overseas Operations
 
The Public Bank Group’s overseas operations continued to contribute to the Group’s profits.
 
Tan Sri Teh said, “For the first quarter of 2018, overseas operations contributed 8.1% of the Public Bank Group’s pre-tax profit, with Public Financial Holdings Limited Group in Hong Kong and Cambodia Public Bank Plc being the main contributors to the Group’s overseas business profits.” 
 
Healthy Capital Position
 
The Public Bank Group’s capital position remained stable. The Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at 12.2%, 12.8% and 15.8% respectively as at the end of March 2018.
 
Further, the implementation of MFRS 9 on 1 January 2018 did not result in any adverse impact to the capital position of the Group due to the Group’s large regulatory reserves that has been set aside.
 
Tan Sri Teh reiterated, “Strong balance sheet and capital position have always been pillars of public confidence. The Public Bank Group’s capital position has remained healthy and well above regulatory requirement. The Group will continue to exercise prudent capital management to support its growth strategies, while maximising its long term shareholder value.”

Group’s Prospect
 
The Malaysian economy had achieved an impressive GDP growth of 5.9% in 2017. The favourable growth is expected to continue in 2018, given the prospects of better macroeconomic conditions on the global and domestic front. The positive operating environment will bode well for the domestic banking industry with continued growth opportunities.
 
Tan Sri Teh added, “The Malaysian banking sector has long benefited from the stable economic conditions and prudent regulatory environment over the years. Tapping on this stable and conducive environment, the Public Bank Group has been able to stay resilient to serve its customers.”

“In 2018, with domestic demand expected to remain favourable, the resilient growth in the domestic economy will continue to be a strong support to the Group’s banking business. The Group maintains a positive outlook for its core business focusing on financing of residential properties and commercial lending to small and medium enterprises. The Group will stay agile to the advancement in financial technology, and will continue to enhance its digital capability in response to the needs of the market. Further, the Group will continue to strengthen its banking infrastructure, product innovation and service quality as the strategic enablers to drive further business growth.” concluded Tan Sri Teh.
 
KHA_3054_C.jpg

Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

* * * * * * *

Public Bank’s 52nd Annual General Meeting Held On 23 April 2018

For Immediate Release

23 April 2018

Public Bank’s 52nd Annual General Meeting Held On 23 April 2018

In conjunction with Public Bank’s 52nd Annual General Meeting held on 23 April 2018, the Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to present a review of the Public Bank Group’s performance in 2017.
 
Performance Review
 
Tan Sri Teh said, “The Public Bank Group achieved yet another profit milestone in 2017 with profit before tax of RM7.12 billion, crossing the RM7 billion mark for the first time. This represents a 8.6% growth as compared to RM6.55 billion in 2016. Net profit attributable to shareholders grew by 5.1% to RM5.47 billion in 2017. As a result, earnings per share increased to 141.7 sen in 2017.”
 
Tan Sri Teh added, “The favourable performance of the Public Bank Group in 2017 was attributed to the healthy loans and deposits growth, coupled with the strong asset quality and sustained cost efficiency. As a result, the Group maintained its leading position amongst domestic commercial banking groups in Malaysia with the highest net return on equity of 15.8%, most efficient cost to income ratio of 31.9% and best asset quality with the lowest gross impaired loans ratio of 0.5%.”
 
Tan Sri Teh further added, “In view of the Group’s favourable performance in 2017, a second interim dividend of 34 sen was paid on 23 March 2018. Together with the first interim dividend of 27 sen paid in August 2017, the shareholders would have received a total dividend of 61 sen per share for 2017.” The total dividends paid for 2017 was RM2.36 billion, representing a payout of 43.1% of the Group’s net profit for 2017.
  
Steady Growth in Loans and Customer Deposits
 
The Public Bank Group’s loans growth was mainly attributed to the lending growth in its retail consumer and commercial banking segment, comprising financing for the purchase of residential properties and extension of credits to small and medium enterprises.
 
Tan Sri Teh highlighted that, “The Public Bank Group’s loans and deposits increased by 3.6% and 3.0% respectively in 2017. Domestic loans increased at a faster pace of 4.6%, higher than the domestic industry’s growth rate of 4.1%. Meanwhile, domestic customer deposits expanded by 3.6%.”
 
Tan Sri Teh further added, “Public Bank remained the market leader in the financing of residential properties, commercial properties and passenger vehicles with market shares of 19.6%, 35.5% and 28.5% respectively. In terms of deposits, the Group’s strong retail franchise and large domestic depositor base of over six million customers underpin the Group’s customer deposits growth.”
 
With the steady inflows of customer deposits, the Group remained well funded with a healthy gross loans to fund and equity ratio of 80.7% as at the end of 2017.
 
Sustained Strong Asset Quality
 
Tan Sri Teh said, “The Public Bank Group continues to rank No. 1 in terms of asset quality amongst Malaysian banking groups with the lowest gross impaired loans ratio of 0.5% as at the end of 2017, significantly better than the banking industry’s gross impaired loans ratio of 1.5%.”
 
As at the end of 2017, the Group's loan loss coverage ratio stood at 95.5% which was higher and more prudent than the banking industry’s loan loss coverage ratio of 82.9%. With the inclusion of regulatory reserves, the loan loss coverage ratio of the Group would be significantly higher at 256.5%.
 
International Operations
 
The Public Bank Group’s overseas operations posted a 10.8% growth in pre-tax profit to RM687.8 million in 2017, contributing 9.7% to the Group’s pre-tax profit in 2017. The Group’s overseas operations remained focused in the Hong Kong and Indo-China market, where the Group has established its footprint for more than 20 years. 
 
Since the transformation of Public Bank Vietnam Limited (“PBVN”) from a joint venture bank to a 100% foreign-owned bank in Vietnam in April 2016, the Group has further expanded its business in Vietnam by opening six new branches in 2017. To date, PBVN has 13 branches and is planning to open more branches in 2018.
 
Higher Contribution from Non-Interest Income
 
Non-interest income remained a significant source of revenue complementing the Group’s net interest income. In 2017, the Group’s non-interest income increased at a commendable rate of 11.3%. This was mainly contributed by higher income from its unit trust businesses, higher investment income as well as increased contribution from its stock broking and bancassurance business. Tan Sri Teh commented, “The Group will continue to place emphasis on growing its fee-based revenue through product innovation and cross-selling initiatives.”
 
Tan Sri Teh said, “The Group’s unit trust management business undertaken by its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the non-interest income growth of the Group. Public Mutual reported an impressive pre-tax profit growth of 15.4% to RM660.9 million in 2017 and remained the market leader with an overall retail market share of 40.9% in the private unit trust business. In 2017, Public Mutual’s total assets under management increased by 15.9% to RM81.44 billion with 141 funds under its management as at the end of 2017.
 
Healthy Capital Position
 
The Public Bank Group’s capital position remained healthy with its common equity Tier I capital ratio, Tier I capital ratio and total capital ratio standing at 12.2%, 13.0% and 16.0% respectively as at the end of 2017, after deducting second interim dividend.
 
Tan Sri Teh commented that, “Public Bank will continue to proactively manage its capital to ensure that the Group’s capital position remains healthy to support the Group’s business growth strategies whilst optimising its shareholders’ return.”
 
Superior Returns to Shareholders
 
The Public Bank Group is committed to deliver consistent returns to its shareholders and enhancing the long term value of its shareholders’ investment.
 
Tan Sri Teh highlighted, “If a shareholder of Public Bank had bought 1,000 shares in Public Bank when it was listed in 1967, and assuming the shareholder had subscribed for all rights issues to date and had not sold any of the Public Bank shares, he would have 148,938 Public Bank shares worth RM3.5 million as at today. In addition, he would have received a total gross dividend of RM1.3 million. This translates into a total value of RM4.8 million, representing a remarkable compounded annual rate of return of 19% for each of the 50 years since 1967.”
 
Recognition of Banking Excellence
 
Over the years, Public Bank has won more than 500 awards in recognition of its banking excellence under the astute leadership of its Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow, as well as its strong corporate governance. These awards were conferred by reputable domestic and international publications as well as independent organisations. In 2017 alone, Public Bank garnered a total of 35 awards. Some of the notable awards received include:
  • Best Bank in Malaysia 2017 by Global Finance
  • Best Bank in Malaysia 2017 by Alpha Southeast Asia
  • Best Domestic Bank in Malaysia 2017 by The Asset
  • Domestic Retail Bank of the Year in Malaysia 2017 by Asian Banking & Finance
  • The Strongest Bank by Balance Sheet in Malaysia 2017 by The Asian Banker
  • Best Bank for SMEs Award 2017 by Asiamoney
  • 7th Asian Excellence Recognition Awards 2017 for Best Investor Relations Company for Malaysia and Best Environmental Responsibility for Malaysia by Corporate Governance Asia
  • The Asset Platinum Award 2017 for Excellence in Environmental, Social and Corporate Governance by The Asset
  • The BrandLaureate Best Performing Public Listed Company - Banking Award 2016-2017 by Asia Pacific Brands Foundation
  • The BrandLaureate Industry Champion Brand Icon Leadership Award for Banking 2017 by Asia Pacific Brands Foundation
  • The Edge Billion Ringgit Club Corporate Awards 2017: Gold Awards for Highest Return on Equity Over Three Years and Highest Growth in Profit After Tax Over Three Years in Finance Sector with RM10 Billion and Above Market Capitalisation by The Edge Billion Ringgit Club
  • The Edge Billion Ringgit Club Corporate Awards 2017: Silver Awards for Highest Return on Equity Over Three Years and Highest Growth in Profit After Tax Over Three Years for Super Big Cap Companies Above RM40 Billion Market Capitalisation by The Edge Billion Ringgit Club   
Outlook

On the strategic directions and outlook for the Public Bank Group, Tan Sri Teh commented that, “The Group is confident that its strong fundamentals will enable it to stay resilient and flexible as well as seize opportunities when they arise. Against the backdrop of an increasingly more 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, will remain the Group’s key strengths to sustain continued business and profitability growth.”
 
KHA_3113-(1).jpg

Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

* * * * * * *

Alert on a Scam

For Immediate Release

19 April 2018

Alert on a Scam
 
It has come to Public Bank’s attention of a website claiming that Public Bank has launched an automated bitcoin trading platform purportedly called "PUBLIC COIN". The website claims that investors can earn tremendous wealth by placing an initial deposit into the platform.
 
Please be informed that neither Public Bank nor its subsidiaries offer such a product.  Public Bank is not the owner of "PUBLIC COIN" and is not responsible for the said product. The website and the information about "PUBLIC COIN" do not originate from Public Bank.
 
Public Bank would like to alert members of the public on this scam.  Information of Public Bank’s products and services are available on its official website, https://www.pbebank.com.
 
Public Bank takes a serious view of any false statements or scams using the Bank’s name, logo or trademark without authority and reserves the right to seek legal recourse against any attempt to mislead the public and / or tarnish the Bank's name and reputation.
 

 * * * * * * *

Public Bank Clinched 5 Awards At The Malaysian e-Payments Excellence Awards 2018

For Immediate Release

12 April 2018

Public Bank Clinched 5 Awards At The Malaysian e-Payments Excellence Awards 2018

Public Bank Berhad (PBB) was once again an outstanding performer at the Malaysian e-Payments Excellence Awards (MEEA) held in Kuala Lumpur on 11 April 2018 after securing 5 awards for its outstanding contribution to the growth of e-payments in the country.

The accolades awarded to PBB were: Best IBG Bank, Outstanding Contribution to FPX, Best MyDebit Bank, My Debit Top Acquirer, Outstanding Contribution to MyDebit.

The MEEA is organized annually by the Payments Network System (M) Sdn Bhd, a wholly-owned subsidiary of BNM to recognize the contributions of the financial industry, the business community and government agencies in accelerating the country’s e-payment agenda.

This is the second year in a row, PBB was awarded as the Best MyDebit Bank as well as retaining the Outstanding Contribution awards for both FPX and MyDebit.

The awards were given out by Bank Negara Malaysia (BNM) Governor, Tan Sri Muhammad Ibrahim. On hand to receive the awards on behalf of PBB was its Managing Director, Tan Sri Dato’ Sri Tay Ah Lek.

The awards won by PBB are a direct result of PBB’s bundling of innovative e-Payment channels with stable infrastructure to provide the best support to e-Payments under a reliable, safe and secured environment.

Besides being a key enabler in migrating businesses and organisations to e-Payments in Malaysia’s journey to embrace a digital economy, PBB is ever conscious of cyber security and has put in place a well defined cyber security strategy to protect customers against cybercrimes.

To further provide a robust and scalable solution to customers, PBB has in March 2018, launched a new version of the Cash Management Solution known as PB enterprise that provides business enterprises a robust platform to manage their financials more effectively and efficiently.

In line with Bank Negara Malaysia’s directive, PBB has organized extensive e-Payments forums nationwide to promote the Bank’s comprehensive Cash Management and e-banking services in an effort to migrate more businesses onto the e-Payments platform.

MAZ_5577_EE.jpg

Caption : From left Public Bank’s Chief Executive Officer/Managing Director, Tan Sri Dato’ Sri Tay Ah Lek and Tan Sri Muhammad bin Ibrahim, Governor, Bank Negara Malaysia and Mr. Peter Schiesser, Managing Director of PayNet at the Malaysian e-Payments Excellence Awards.


* * * * * * *

Tan Sri Teh Hong Piow Declared As ‘The Greatest Malaysian Banker Of All Time’

For Immediate Release

13 March 2018

Tan Sri Teh Hong Piow Declared As ‘The Greatest Malaysian Banker Of All Time’
 

Public Bank’s Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow has been awarded the ‘The Greatest Malaysian Banker of All Time’ by the Asia Pacific Brands Foundation on 10 March 2018, during the Public Bank Management Seminar Dinner held at the Mines International Exhibition and Convention Centre.
 
Dr. KK Johan, President of the BrandLaureate, presented the award to Tan Sri Teh in the presence of more than 4,000 staff of the Public Bank Group.
 
Dr. KK Johan in his citation speech said, “For the past 50 years, there is no other banker extraordinaire that has steadfastly grown the bank to record breaking feats, positive growth year after year and for 2017, achieved a net profit to RM5.47 billion reached through organic growth and brilliant strategic moves”.
 
“The brilliant mind of Tan Sri Teh Hong Piow has no match and his astounding knowledge of the banking industry puts him ahead of the competition. Without Tan Sri Teh Hong Piow and Public Bank, I daresay that Malaysia’s banking industry and the country’s economy would not be what it is today. He defines banking leadership and with his principles and philosophy has set standards of good banking practices, which is emulated and respected by his peers”, added Dr. KK Johan.

Dr. KK Johan continued, “The APBF has specially crafted a trophy to present to you tonight – a trophy that symbolises your weight in the industry as a banking giant and a trophy that is very elaborate, specially crafted and designed like no other trophies designed before.  A masterpiece only meant for the Great Master Banker. No one has received it before and is worthy of it except the honourable Founder Chairman of Public Bank, Tan Sri Dato’ Sri Teh Hong Piow. This award is meant only for the greatest and the best!”.
 
In applauding Tan Sri Chairman’s latest award, Public Bank Managing Director Tan Sri Dato’ Sri Tay Ah Lek said, “On behalf of the Board of Directors, Management and staff of Public Bank Group, I wish to express our heartiest and heartfelt congratulations to Tan Sri Teh Hong Piow for being bestowed this BrandLaureate ‘The Greatest Malaysian Banker of All Time’ Award tonight”.
 
He said, “Tan Sri Chairman is the mark of an ideal leader whose hopes and dreams for Public Bank knows no bounds. The exemplary leadership of Tan Sri Chairman as ‘The Greatest Malaysian Banker of All Time’ has not only propelled Public Bank to the forefront of the Malaysian financial landscape but has also gained international respect and acclaim”.
 
“Tan Sri Chairman has contextual intelligence, a profound ability to understand the spirit of the times and harness the opportunities they present to create a successful organisation. These are the attributes that have enabled Public Bank to make stellar returns and create significant value for stakeholders over the years”.
 
According to Tan Sri Tay, “Tan Sri Chairman’s compassion towards his staff and excellence in all his endeavours, call immediately for our total respect and warmest love.  Tan Sri Chairman, you are an inspiration not only to your Public Bank family, but also to generations of bankers and a continuing source of enlightenment”.
 
With this latest award, Tan Sri Teh has received a total of 45 personal to holder awards in recognition of his exemplary commitment to excellence and lifetime dedication to the banking industry.

BrandLaureate-Award-2018.jpg

 Dr. KK Johan presenting the award trophy to Tan Sri Dato' Sri Dr. Teh Hong Piow.

* * * * * * *

Public Bank Group Achieved Record Pre-Tax Profit of RM7.12 Billion For 2017 And Declared Second Interim Dividend of 34 SEN

For Immediate Release

22 February 2018

PUBLIC BANK GROUP ACHIEVED RECORD PRE-TAX PROFIT OF RM7.12 BILLION FOR 2017 AND DECLARED SECOND INTERIM DIVIDEND OF 34 SEN
 
Chairman’s Review
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow announced today that, “The Public Bank Group recorded yet another milestone financial results in 2017 with pre-tax profit of RM7.12 billion, surpassing the RM7.0 billion mark for the first time. This represents 8.6% growth from the pre-tax profit of RM6.55 billion achieved a year ago. Net profit attributable to shareholders grew by 5.1% to RM5.47 billion, translating to a net return on equity of 15.8% for 2017.”
 
The Malaysian economy grew stronger than expected in 2017. The continued expansion in domestic demand, coupled with the improvement in external environment continued to provide growth opportunities for the banking industry. Against the macro backdrop, the Public Bank Group continued to progress and deliver a favourable set of financial results supported by a commendable 7.9% total net income growth. This was attributed to steady loan growth coupled with continuous drive on fee-based revenue and effective cost management. 
 
Tan Sri Teh further added that, “With the resilient performance in 2017, the Public Bank Group continued to achieve a high net return on equity of 15.8% whilst maintaining its low gross impaired loan ratio of 0.5% and an efficient cost-to-income ratio of 31.9%. The results are a validation of the Group’s effective organic growth strategies and sustainable business model. We have benefited from our disciplined execution of our growth strategies whilst preserving prudent risk management practices to ensure sustainable and stable returns.”
 
In view of the Public Bank Group’s favourable performance in 2017, Tan Sri Teh announced that, “The Board of Directors is pleased to declare a second interim dividend of 34 sen, taking full year dividend for 2017 to 61 sen.” The total dividend paid and payable for 2017 amounted to RM2.36 billion and represents a total payout of 43.1% of the Group’s net profit for 2017.
 
Steady Growth in Loans and Deposits
 
For the financial year ended 31 December 2017, the Public Bank Group sustained a steady loan growth momentum at a rate of 3.6%. Domestic lending business grew by 4.6% over the same period, outpacing the domestic banking industry’s loan growth rate of 4.1%.
 
The Public Bank Group’s loan growth was mainly attributed to the lending growth in its retail consumer and commercial banking segment, comprising financing for the purchase of residential properties and extension of credits to small and medium enterprises.
 
In tandem with the steady loan growth, the Group’s total customer deposits grew by 3.0%, mainly attributed to the steady inflow of core deposit comprising fixed deposits, low-cost savings and current accounts, which grew by 4.5%.
 
“The Group’s robust funding position was mainly supported by its strong retail franchise and large domestic depositor base of over six million customers who continue to place their trust and confidence in the Group in safeguarding their funds,” remarked Tan Sri Teh.
 
With the steady inflow of customer deposits, the Public Bank Group remains well funded with a healthy gross loan to fund and equity ratio of 80.7% as at the end of 2017.
 
Sustaining Growth in Fee-Based Revenue
 
Tan Sri Teh highlighted that, “Growing fee-based revenue remains as a key strategic focus of the Public Bank Group.” Arising from the Group’s initiative to drive growth of its fee-based revenue in order to sustain better return for its shareholders, the Group’s non-interest income increased by 11.3% in 2017 as compared to 2016. This was mainly contributed by higher income from its unit trust business, higher investment income as well as increased contribution from its stockbroking and bancassurance business.
 
The Public Bank Group’s unit trust management business undertaken by its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the non-interest income growth of the Group. For the year 2017, fee income from unit trust business made up 39% of the Group’s total non-interest income. As at the end of 2017, Public Mutual manages 141 funds with a total net asset value of RM81.4 billion and has remained as the market leader with an overall retail market share of 40.9% in the private unit trust business. For the financial year ended 31 December 2017, Public Mutual reported an impressive 15.4% growth in pre-tax profit to RM661 million.
 
Sustained High Productivity and Cost Efficiency
 
The Public Bank Group continued to be the most efficient banking group in Malaysia with its best cost-to-income ratio of 31.9% as compared to the banking industry’s average cost-to-income ratio of 45.8%.
 
Tan Sri Teh added that, “The Group is committed to continue with prudent cost discipline at all times and to consistently pursue high productivity and cost efficiency in all aspects of its operations, prioritising the investment and deployment of resources and technology to where they are most effective without compromising on compliance and service quality.”
 
Superior Asset Quality
 
Tan Sri Teh highlighted that, “Amidst the prevailing economic uncertainties and challenges, the Public Bank Group continued to demonstrate resilience in its asset quality.”

As at the end of 2017, the Public Bank Group’s impaired loan ratio remained low at 0.5%, significantly lower than the industry ratio of 1.5%. The Group’s loan loss coverage ratio of 95.5% as at the end of 2017 continued to be better as compared to the Malaysian banking industry’s ratio of 82.9%. Including the RM2.4 billion regulatory reserves set aside, the Group’s loan loss coverage ratio would be 256.5%, which provides a strong buffer for the Group’s adoption of MFRS 9 effective 1 January 2018.
 
Tan Sri Teh further added, “To continue achieving strong asset quality while maintaining steady growth in its lending business, the Group will continue with its present prudent approach and practices in managing the quality of its loan portfolio right from origination to the recovery of impaired loans.
 
Overseas Operations
 
The pre-tax profit of the Public Bank Group’s overseas operations grew by 10.8% to RM688 million in 2017, contributing 9.7% to the Group’s overall pre-tax profit for 2017.
 
Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc, both subsidiaries of Public Bank, continued to be the main contributors to the Group’s overseas business growth, generating pre-tax profit of HKD616 million and USD59 million respectively during the year.
 
In addition, Vietnam will continue to be on the Public Bank Group’s overseas expansion plan. With the 100% foreign-owned bank licence obtained in 2016, the Group has further expanded its business through the opening of 6 new branches in 2017. As at to date, it has 13 branches and is planning to open more branches in 2018.
 
Tan Sri Teh emphasised that, The Group remains committed to expand its presence in the region through organic growth strategy and will continue to transfer its best practices from its domestic operations to accelerate business growth in its overseas operations.”
 
Healthy Capital Position
 
The Public Bank Group continued to maintain a healthy level of capital with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 12.2%, 13.0% and 16.0% respectively as at the end of 2017, after deducting the second interim dividend.  
 
Tan Sri Teh reiterated that, “Public Bank will continue to be proactive in its capital management in order to ensure that the Group’s capital position remains healthy at all times in support of the Group’s business growth strategies whilst optimising its shareholders’ return.”
 
Group’s Prospect
 
The banking sector outlook is expected to be generally stable in 2018. The global economic recovery is strengthening and the Malaysian economic growth is expected to remain strong in 2018. This sets a stable outlook for continued growth opportunities for the Malaysian banking sector.
 
While acknowledging the improved prospects in the overall economy, the Public Bank Group remains cautious on the potential downside pressure emanating from the continued low consumer sentiments and uncertainties lingering in the global economic environment.
 
However, the Public Bank Group is confident that its solid business model building on organic growth strategy in the core retail banking and financing business, coupled with its prudent credit policies, as well as strong risk management practices will continue to be the key strengths for the Group to strive for higher growth and sustainable profitability. Facing the highly competitive banking landscape, the Group’s key priorities are to accelerate business innovation and pursue operational efficiency in order to deliver the Group’s commitment to excellence to all its stakeholders,” concluded Tan Sri Teh.
 
NAZ_0286_EE.jpg

Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

* * * * * * *

Public Bank Offers 24K Gold-Plated Gifts “PB Golden Fortune Brings You Prosperity with Exquisite Gift”

For Immediate Release

2 January 2017

Public Bank Offers 24K Gold-Plated Gifts “PB Golden Fortune Brings You Prosperity with Exquisite Gift”

Public Bank is pleased to announce the launch of the ‘PB Golden Fortune Campaign’ in conjunction with the forthcoming Chinese New Year Celebration with golden reward. The promotion period of this Campaign is from 1 January 2018 to 31 March 2018 and it is open to all new and existing Public Bank customers.
 
There are two exclusively designed enchanting 24K gold-plated auspicious gifts up for grabs this year which consist of a plus size gift namely “Scroll of the Golden Koi” and a standard size gift “Auspicious Double Crane”. These gifts are limited edition and each represents a magnificent piece of gold craft that symbolises longevity, prosperity and success. The gifts are limited and only available on first-come-first-serve basis, while stock lasts.
 
There are two plans i.e. PB Golden Plan and PB Fortune Plan for customers’ selection. Customers can purchase Unit Trust (UT) or PB Smart Link (PBSL) or Gold Investment Account (GIA) bundled with deposit in PLUS or Basic Current / Savings Accounts in order to get the exclusive gift(s). PB Golden Plan offers one “Auspicious Double Crane” and PB Fortune Plan offers one “Scroll of the Golden Koi”.
 
This campaign is designed for customers who are looking for diversified investment products in achieving their financial goals. Customers can choose from a vast selection of Unit Trust funds that cater to their risk appetites in order to achieve their financial goals through proper financial planning. Customer can also invest in PB Smart Link which is an investment-linked insurance plan that provides insurance coverage. In addition, they can choose to invest in gold without having to keep physical gold via the Gold Investment Account which has remained a popular investment tool to safeguard wealth.
 
Just select the PB Golden Plan or PB Fortune Plan of your choice and be rewarded with the limited edition 24K gold-plated gift(s). Collect both designs by signing up for multiple plans!
 
To find out more about Public Bank campaigns, customers are welcomed to visit any of our PBB branches, log on to PBB website at www.pbebank.com or call our free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.

Golden-Fortune-Web.jpg
* * * * * * *
Public Bank And Public Islamic Bank Activate Relief Assistance Programme For Customers Affected By The Massive Flood

For Immediate Release

7 November 2017

Public Bank And Public Islamic Bank Activate Relief Assistance Programme For Customers Affected By The Massive Flood

Public Bank and Public Islamic Bank are activating the Relief Assistance Programme for its customers and employees who have been affected by the current flood in several states in Malaysia.
 
Public Bank Managing Director, Tan Sri Tay Ah Lek said today, “Similar to previous relief measures undertaken by Public Bank, the Bank is considerate towards the people who are affected by the flood. The Bank hopes that the Relief Assistance Programme would help to alleviate their hardship.”

Relief Assistance for Affected Customers
Effective November 2017, for the affected individual and business customers, Public Bank is offering moratorium of up to six months for the monthly instalment payments of loans and financing. The flood moratorium is applicable to house financing, hire purchase, credit cards and other loans and financing facilities.

In addition, Public Bank will, on a case-to-case and need basis, accommodate to requests by the affected customers to restructure their loans and financing, and reschedule their monthly repayment to assist in their cash-flow situation during this difficult time.

Public Bank will waive charges to affected customers who are seeking to replace their ATM cards, passbooks, cheque books or any banking related documents, which have been destroyed or lost in the flood.
   
Public Bank will also work in collaboration with Lonpac Insurance Bhd, under its Fast-Track Claim Settlement Programme, to facilitate and expedite claims to be made by the affected customers on losses covered by their respective insurance policies underwritten by Lonpac.

Financial Assistance for Staff
As a caring employer, Public Bank has provided special cash relief assistance to its affected staff and their families. The affected staff are being granted compassionate leave to enable them to attend to their domestic affairs.
 
Contacts
Affected customers who require the Relief Assistance Programme are advised to go to the Public Bank branch where they maintain their accounts or call the Bank’s toll-free number at 1800 22 5555. For insurance claims related matters, affected customers can contact Lonpac at 03-2262 8688.

“Public Bank stands ready to support the needs of customers and staff. The Bank will continue to monitor the situation and extend its assistance should the need arise,” Tan Sri Tay added.

 

********

Comments On The Budget 2018

Note To Editors:
This press release is issued by
Tan Sri Dato’ Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

27 October 2017

Comments On The Budget 2018
 

We applaud the wholesome approach in crafting the Budget 2018. Budget 2018 touches all aspects of the society and rakyat from all walks of life.  It provides wide ranging and inclusive measures to promote economic expansion and wellbeing of the rakyat, particularly the medium and lower income group. This sets the direction for the nation to embark on the journey towards the National Transformation 2050 (TN50).  The Budget also addresses the needs of the rakyat amid rising cost of living. 
 
We view positively the Government’s firm and continuous commitment in strengthening its fiscal position, and Budget 2018 affirms this ongoing fiscal effort. Budget deficit is projected to reduce further to 2.8% of GDP in 2018, supported by expectations of higher government revenue and prudent fiscal spending.
 
The implementation of new and ongoing infrastructure projects will continue to stimulate investments, which in turn generate capacity expansion in high growth sectors. Domestic investment will complement private consumption activities, contributing to a broad-based economic growth.
 
The global economic landscape will continue evolving owing to technological advancement, particularly in the area of digital economy. In the midst of the Fourth Industrial Revolution, raising value-added productivity, alongside innovation, technological advancements and human capital development could unleash further the growth potential of the Malaysian economy. 

 MDF_0857-lonpac_E-(1).jpg

Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

* * * * * * *

Public Bank Group Achieved Pre-tax Profit of RM5.16 Billion for The First Nine Months of 2017

For Immediate Release

26 October 2017

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM5.16 BILLION FOR THE FIRST NINE MONTHS OF 2017

Chairman’s Review

For the first nine months of 2017, the Public Bank Group continued to make good progress, with its pre-tax profit increasing to RM5.16 billion, representing 8.4% growth from the corresponding period in 2016. Over the same period, net profit attributable to shareholders increased by 7.0% to RM3.98 billion.
 
The Public Bank Group’s sustained business momentum continued to be driven largely by its healthy growth in its loans and deposits business, generating 8.0% growth in its net interest income. Non-interest income also recorded a healthy growth of 7.6% during the period.
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ 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.”
 
Tan Sri 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% with an efficient cost-to-income ratio of 32.8%, while the Group’s gross impaired loan ratio remained low at 0.5%.”
 
Healthy Loan and Deposit Growth

In the first nine months of 2017, the Public Bank Group’s total loans recorded 3.3% annualised growth to RM301.3 billion. The Group’s domestic loans portfolio grew at a higher annualised rate of 4.6%, as compared to the banking industry’s annualised growth rate of 3.5%.
 
“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 Tan Sri Teh.
 
On deposit-taking, the Public Bank Group’s total deposits grew at an annualised rate of 5.4% to RM322.6 billion over the first nine months of 2017.  On the domestic front, total deposits grew at an annualised rate of 5.7% as compared to 3.7% annualised growth recorded in the domestic industry’s total deposits.
 
Growth in Non-interest Income
 
In the first nine months of 2017, the Public Bank Group’s non-interest income recorded a healthy growth of 7.6%, 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 Berhad, the Public Bank Group’s wholly-owned subsidiary, recorded 15.5% growth in profit during the nine months period ended September 2017, 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%. With 5 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.
 
Tan Sri Teh reiterated, “Non-interest income has remained integral to the Public Bank Group’s revenue source. The Public Bank Group will further strengthen its capability in growing this revenue stream through the offering of innovative products and proactive marketing and cross selling strategies.”
 
Prudent Approach in Cost Management
 
In the first nine months of 2017, the Public Bank Group continued to sustain an efficient level of cost-to-income ratio at 32.8%, significantly better than the banking industry’s average cost-to-income ratio of 45.8%.
 
Tan Sri Teh highlighted, “The Public Bank Group has put in considerable efforts to strengthen its productivity in order to sustain its cost efficiency.  When rising prices and cost of compliance are exerting pressure on the Group’s expenses, the Group has remained highly committed to financial discipline while ensuring compliance with regulations.”
 
Sustained Strong Asset Quality
 
Tan Sri Teh said, “The Public Bank Group has always focused on asset quality in the pursuit of business growth. Thus, the Group has been able to sustain its stable asset quality even in challenging times. As at the end of September 2017, the Group’s gross impaired loan ratio of 0.5% continued to remain the best in the domestic banking industry.”
 
Overseas Operations
 
The Public Bank Group’s overseas operations continued to drive revenue growth for the Group. For the first nine months of 2017, the Group’s overseas operations contributed 9.8% to the Group’s pre-tax profit, mainly attributed to Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc.
 
Tan Sri Teh reiterated, The Public Bank Group remains committed in growing its overseas operations, particularly in Indo-China and Hong Kong. In pursuit of the Group’s organic growth strategy, it will continue to explore opportunities for the opening of new branches and diversification of products and services to grow its regional operations.”
 
Healthy Capital Position
 
The Public Bank Group has remained well-capitalised with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 11.7%, 12.4% and 15.4% respectively as at the end of September 2017.
 
Tan Sri Teh emphasised, “Maintaining a healthy capital position has always been an important factor to banking resilience. It has remained a strategic action for the Public Bank Group to ensure its capitalisation complies with the regulatory requirement and is supportive of its business growth.”
 
Group’s Prospects
 
The Malaysian economy grew by a stronger than expected rate of 5.7% in the first half of 2017. The growing domestic economic activities, coupled with the firming external demand, are widely expected to underscore higher  GDP growth in 2017.
 
On the banking business, Tan Sri Teh commented, “The banking sector will continue to benefit from the growing economy. Nevertheless, we remain cautious as  downside risks will continue to exert pressure on consumer sentiment.”
 
Tan Sri Teh added, “With its strong foundation, the Public Bank Group has always been in good position to support the country’s economy. The Group will continue to leverage on its strong PB brand and its efficient banking resources and infrastructures to serve the public.”

MDF_0842-lonpac_CE.jpg

Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

********