KUCHING: Public Bank Bhd’s (Public Bank) second quarter 2014 (2Q14) net profit rose 3.2 per cent year-on-year (y-o-y) to RM1.056 billion compared with RM1.023 billion recorded the year before.
File picture shows a Public Bank branch office located at Jalan Padungan here. Public Bank said its net profit for 2Q14 up 3.2 per cent year-on-year and 1H14 net profit increased by 4.1 per cent year-on-year respectively.
The banking group in a filing to Bursa Malaysia yesterday said its first half 2014 (1H14) earnings also rose 4.1 per cent y-o-y to RM2.07 billion against RM1.99 billion registered in 1H13.
At the same time, the financial institution’s topline for 2Q14 grew 6.7 per cent y-o-y to RM4.059 billion while revenue for 1H14 went up 7.1 per cent y-o-y to RM8 billion.
Meanwhile, Public Bank in a statement said it continued to maintain traction in its loan growth with an annualised growth rate of 10 per cent in the first half.
The banking group’s steady loan growth was driven by its commendable annualised domestic loan growth of 10.6 per cent which outpaced the domestic banking industry’s 6.9 per cent rate.
The group’s loan growth was supported by lending to the retail banking segment, comprising extension of credit mainly to small and medium enterprises (SMEs) as well as for purchasing of residential properties and passenger vehicles.
Public Bank revealed that as at June 30, its retail loan portfolio collectively accounted for 87 per cent of its total loans, while the lending to small and medium enterprises recorded a strong annualised growth of 23 per cent in 1H14.
Chairman and founder Tan Sri Teh Hong Piow said, “I am delighted that the Public Bank group is able to maintain its momentum by recording a commendable domestic loan growth of 10.6 per cent on an annualised basis during the six-month period ended June 2014.
“The group’s domestic customer deposits also registered a strong annualised growth of 11.4 per cent during the same period.
“The Public Bank group continues to be the leader amongst its Malaysian banking peers by achieving the highest net return on equity of 20.8 per cent and sustaining its strong asset quality and cost efficiency by continuously maintaining its low gross impaired loan ratio of 0.7 per cent and cost-to-income ratio of 31.8 per cent in 1H14.”
The group also declared a first interim single-tier dividend of 23 sen which will result in a total dividend payout of RM886 million.
In the meantime, Public Bank remains focused in putting in place various initiatives to drive the growth of its non-interest income in order to sustain its high return on equity.
The banking group pointed out that its non-interest income improved by 6.9 per cent in 1H14 as compared to the corresponding period in 2013.
The financial institution noted that the higher non-interest income was attributed to higher income from its unit trust business.
As for the banking group’s overseas operations, Public Bank said for the half year ended June, its overseas operations contributed 7.4 per cent of the Group’s overall pre-tax profit.
Cambodian Public Bank Plc (Campu Bank), a wholly-owned subsidiary of Public Bank, reported another set of strong pre-tax profit growth of 36.2 per cent to US$22.9 million as compared to the corresponding period in 2013, amid the challenging business environment in Cambodia.
The banking group observed that Campu Bank remains as one of the top three largest banks in Cambodia.
Going forward, Teh said, “Our strategies for the Public Bank group remain unchanged.
“The group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance.
“The group will continue to leverage on its strong Public Bank brand and its wide and efficient branch network as well as its excellent customer service to support long term sustainable growth,” Teh said.