Tan Sri Dr Teh Hong Piow
KUCHING: Public Bank Bhd (Public Bank) recorded pre-tax profit of RM3.55 billion, a growth of 5.5 per cent from the corresponding period in 2017 for the first half of the year ended June 30, 2018.
The group’s net profit attributable to shareholders increased by 8.6 per cent to RM2.8 billion.
Public Bank founder and chairman Tan Sri Dr Teh Hong Piow said that the group was able to sustain good business momentum in 1H18.
“The higher profit for the period was largely driven by growth in its loan and deposit business, with further impetus from a 4.9 per cent growth in non-interest income,” Teh added.
“Sustained business strength continued to place the group in a strong competitive position, with its net return on equity standing at 15.0 per cent.
“Similarly, the group’s cost-to-income ratio of 33.1 per cent and gross impaired loans ratio of 0.5 per cent remained the best in the domestic banking industry.”
As the group continued to deliver favourable performance, Teh announced that the board of directors has declared a first interim dividend of 32 sen per share, which will result in a total dividend payout of RM1.24 billion.
“The first interim dividend will be paid on September 19, 2018 based on the dividend entitlement date of September 7, 2018.”
In 1H18, Public Bank’s total gross loans rose by an annualised rate of 4.1 per cent to RM310.7 billion. On the domestic front, total loans grew at an annualised rate of 4.3 per cent to RM288.3 billion. The group has continued to sustain its leading position in the financing business focusing on residential properties and commercial lending to small and medium enterprises in the domestic banking industry.
On deposit taking, Public Bank’s total customer deposits grew at an annualised rate 6.7 per cent, led by the resilient growth in domestic deposits which increased at an annualised rate of 7.4 per cent.
“The group exercises prudent liquidity management and always ensures the stability of its funding sources,” Teh said.
“As at the end of June 2018, the group’s gross loan to fund and equity ratio stood at a healthy level of 79.4 per cent.”
The non-interest income segment has remained a main source of revenue to Public Bank. In the first half of 2018, non-interest income increased by 4.9 per cent, largely contributed by the group’s unit trust business as well as stable growth in its banking transactional fee income.
“In the first half of 2018, Public Mutual, the Public Bank group’s wholly-owned unit trust management subsidiary, continued to deliver favourable result, with its pre-tax profit growing by 9.0 per cent compared to the corresponding period in 2017,” Teh added.
“As at end-June 2018, Public Mutual managed a total of 144 unit trust funds, with a total net asset value of RM80.2 billion.
“Public Mutual’s market presence remained significant, with its market share standing strong at 40.3 per cent in the domestic private unit trust industry.”
Public Bank’s cost-to-income ratio remained stable at 33.1 per cent in the first half of 2018, staying well below the banking industry’s average cost-to-income ratio of 44.8 per cent. This reflects the group’s unwavering strong commitment to high operational efficiency.