Higher profit for Public Bank

High returns: With the improved profitability, Public Bank group achieved a net return on equity of 15.3.

PETALING JAYA: Public Bank Bhd, which saw its net profit rise 6% to RM1.33bil in the second quarter ended June 30, has declared an interim dividend of 27 sen amounting to a payout of RM1.04bil.

The bank’s revenue in the second quarter rose 3.75% to RM5.17bil against RM4.98bil a year ago. Its earnings per share for the period rose to 34.49 sen per share from 32.53 sen per share a year ago.

For the first six months, Public Bank posted a net profit of RM2.58bil, or 66.81 sen in earnings per share, on a revenue of RM10.19bil. Its pre-tax profit increased to RM3.37bil, up 5.1% from the corresponding period in 2016.

“The Public Bank group has continued with its positive momentum in sustaining profitability growth. The group’s clear and focused business strategy, coupled with its prudent credit culture, continues to underpin its consistent financial performance under the current challenging operating environment,” founder and chairman Tan Sri Teh Hong Piow said in a statement.

The bank’s sustained profitability continued to be driven by the expansion in its loan and deposit portfolio, which led to a growth of 8.3% in its net interest income.

“With the improved profitability, the Public Bank group achieved a net return on equity of 15.3%. The group’s financial strength was also attributed to its strong asset quality and efficient cost management as reflected in its gross impaired loan ratio of 0.5% and cost-to-income ratio of 33.8% as at the end of June 2017,” Teh said.

In view of the group’s favourable performance, Teh said: “The board of directors has declared a first interim dividend of 27 sen per share, which will result in a total dividend payout of RM1.04bil.

“The first interim dividend will be paid on Aug 17 based on the dividend entitlement date of Aug 9, 2017.”