Tan Sri Dr Teh Hong Piow
KUCHING: For the first nine months of 2019 (9M19), the Public Bank Group’s profit performance remained stable on the back of a 2.3 per cent growth in total revenue to RM16.78 billion.
For the nine-month reporting period, the group recorded a pre-tax profit of RM5.31 billion and net profit attributable to shareholders of RM4.11 billion, compared to RM5.31 billion and RM4.19 billion respectively in the corresponding period in 2018.
On a quarter-to-quarter comparison, the group’s net profit attributable to shareholders of RM1.36 billion recorded in the third quarter of 2019 (3Q19), represented an increase of 2.2 per cent as compared to the net profit attributable to shareholders of RM1.33 billion achieved in (2Q19).
“Recent developments in the operating environment posed further challenges to the banking industry.
“While macro headwinds remain, the reduction in Overnight Policy Rate (OPR) in May 2019 had also resulted in the decline in net interest margins for the banking sector, which affected the profit for the first nine months ended September 2019,” Public Bank’s founder, chairman emeritus, director and adviser Tan Sri Dr Teh Hong Piow said.
“Despite these concerns, the Public Bank Group was able to sustain stable profit performance, mainly on account of the stable interest income from its growing financing and deposit business. The group’s profitability was also complemented by its non-interest income which grew by 5.8 per cent in the first nine months of the year.
“During the financial period, the group also retained its competitive strength, as reflected in its efficient cost-to-income ratio of 34.3 per cent and low gross impaired loans ratio of 0.5 per cent. As a result, the group sustained a resilient net return on equity of 13.3 per cent.”
Amid the persistence of adverse developments in the macro environment largely stemming from the external front, the domestic banking sector is likely to continue facing headwinds weighing on revenue growth.
On this note, Teh said that Public Bank will maintain a cautious stance amid the growing downside risks.
“However, this does not hinder the group from pursuing continued business expansion. Pockets of opportunities remain for banks to explore in the growing Malaysian and regional economies. These include sustained demand for affordable housing and new growth opportunities arising from the advancement of digital banking.”
“The Public Bank group’s fundamental strength will continue to position the group for future growth and to develop new competitive strength centred on the group’s strategy to continue delivering values to its stakeholders,” he concluded.