KUCHING: The Public Bank Group yesterday announced a pre-tax profit of RM1.63 billion for the first quarter of 2017 on the back of a stable gross revenue of RM5.03 billion achieved during the quarter.
Net profit attributable to shareholders grew by 1.5 per cent to RM1.25 billion for the first quarter of 2017, as compared to RM1.23 billion achieved in the previous corresponding quarter.
Founder and chairman of Public Bank, Tan Sri Dr Teh Hong Piow said that, “The Public Bank Group has placed itself for a positive start in 2017, as the Group has continued to achieve stable profitability even in times of persistent headwinds facing the banking environment.
“The group’s profitability continued to be driven by its core retail banking business underpinned by healthy growth in loans and deposits during the quarter, coupled with its sustained strong asset quality.”
Teh added that, “The Public Bank Group continued to sustain a satisfactory set of financial performance indicators as reflected in its net return on equity of 14.9 per cent, gross impaired loans ratio of 0.5 per cent and an efficient cost-to-income ratio of 34.3 per cent.”
In the first quarter of 2017, total gross loans of the Public Bank Group increased at an annualised rate of 3.6 per cent, with domestic loans growing faster at an annualised rate of 4.7 per cent.
The group’s growing loans portfolio focusing on the financing of residential properties and commercial lending to small and medium enterprises, continued to capture major market share in the domestic lending market.
In the deposit-taking business, the group achieved an annualised 8.1 per cent growth in total customer deposits for the first quarter of 2017, underpinning a stable base for the group’s funding position. On the domestic front, the group’s total deposits grew at an annualised rate of 7.9 per cent.
The Public Bank Group’s cost-to-income ratio increased from 32.3 per cent in 2016 to 34.3 per cent in the first quarter of 2017, but still remained efficient as compared to the banking industry’s cost-to-income ratio of 45.8 per cent.
The group continued to uphold its strong asset quality, with its gross impaired loans ratio remaining low at 0.5 per cent as at the end of March 2017, as compared to the Malaysian banking industry’s gross impaired loans ratio of 1.6 per cent.
For the first quarter of 2017, the Public Bank Group’s overseas operations contributed 10 per cent of the group’s overall pre-tax profit. Public Financial Holdings Ltd Group in Hong Kong and Cambodian Public Bank Plc are the main contributors to the Group’s overseas business profits.
The Public Bank Group has also recorded commendable growth in its Vietnam’s operation, through its wholly-owned subsidiary, Public Bank Vietnam Ltd.
The Public Bank Group’s capital position remained stable, with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 11.4 per cent, 12.2 per cent and 15.2 per cent respectively as at the end of March 2017.
Teh emphasised that, “Ensuring a stable and healthy capital position has continued to be the impetus for the Public Bank Group to grow further.
The group’s proactive capital management is a key competency in support of its growth strategies while ensuring the fulfillment of regulatory requirement.”