Public Bank Bhd chairman Tan Sri Teh Hong Piow to retire

Teh, the 4th richest man in Malaysia, will assume the title

PETALING JAYA: Public Bank Bhd chairman Tan Sri Teh Hong Piow will leave his post on Jan 1, 2019 but will remain as the bank’s adviser.

“The details relating to the appointment of the new chairman of Public Bank will be announced at an appropriate time,” the bank said in a statement.

Teh will assume the title “chairman emeritus” after he relinquishes his position as chairman of Public Bank.

This, according to the bank, is in recognition of his “par excellence contributions” over the past 51 years since he founded Public Bank on Dec 30, 1965.

He would also remain as an adviser.

Teh is also retiring from his role as chairman of Public Islamic Bank Bhd and Public Investment Bank Bhd with effect from Jan 1, 2018, but would stay on as non-executive director in both wholly-owned subsidiaries of Public Bank with effect from the same day.

“The smooth transitions of the succession of the chairmanships of Public Bank, Public Islamic Bank and Public Investment Bank are in place,” the group said.

Teh – the fourth-richest man in Malaysia – at present owns a 23.5% stake in Public Bank.

Public Bank’s succession plan has always been a concern among its investors despite the group’s stellar financial performance and constant assurance from the management of an ongoing process to ensure a smooth transition.

Public Bank saw its net profit rise 6% to RM1.33bil in the second quarter ended June 30.

The group has declared an interim dividend of 27 sen, amounting to a payout of RM1.04bil.

During the quarter in review, the bank’s revenue 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 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 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.

Public Bank shares fell 26 sen to close at RM20.28 yesterday.