Public Bank records 3Q net profit of RM1.59bil, declares 4c/share dividend

KUALA LUMPUR: Public Bank Bhd is on a recovery trajectory but founder, chairman emeritus, director and adviser Tan Sri Teh Hong Piow reiterated the bank will keep vigilant amid the challenges in the global economy.

In a statement announcing the group's quarterly results, Teh said downside risks remain owing to inflationary pressure, supply chain disruptions, global monetary tightening and geopolitical tensions.

"The group will continue to build business resilience by maintaining healthy capital position, preserving asset quality, further strengthening its risk management capabilities and upholding sound corporate governance practices.

“As the group continues to leverage on its core banking business to grow its business, the group will remain agile in strategy implementation to capture any business opportunities arising from the economic recovery and evolving business landscape," he said.

Over the first nine months of 2022, the group posted a net profit of RM4.41bil, up from RM4.28bil in the same period in 2021, as it recorded 7.7% higher net interest income and 70%lower impairment allowances.

The group's earnings per share was slightly higher at 22.7 sen as compared with 22.03 sen in the comparative quarter.

Revenue meanwhile rose to RM15.36bil during the period from RM14.76bil in 9MFY21.

In the third quarter of the year alone, Public Bank's net profit was RM1.59bil compared with RM1.36bil in the same quarter last year. This was on the back of 3QFY22 revenue of RM5.5bil as compared with RM4.81bil in 3QFY21.

The group declared a second interim dividend of four sen per share, with entitlement date on Dec 15, 2022, and payable on Dec 23, 2022.

According to Teh, total loans for the nine months period grew 5.8% year-on-year (y-o-y) to RM373.6bil with domestic loans expanding 5.2% to RM347.8bil.

"Supported by the improving economic conditions, the Public Bank Group’s total domestic loans approval surged by 30.2% in the first nine months of 2022, reinforcing the group’s leading market share in the residential properties and hire purchase financing, which stood at 20.6% and 30.4% respectively," he said.

The group's total customer deposits increased 4.5% y-o-y to RM393.3bil during the period.

Domestic deposits rose 4.5% to RM364.6bil, mainly owing to growth in current and fixed deposits by 7.5% and 7.3% respectively.

Public Bank reported that non-interest income fell 11% y-o-y, mainly owing to lower unit trust fees, stockbroking income and investment income resulting from the unfavourable market conditions.

Despite the weaker market performance, the unit trust business, Public Mutual, recorded total assets under management of RM88.7bil, and posted a pre-tax profit of RM580.4mil in 9MFY22, which represented 45% of the group's non-interest income.

As at end-September 2022, the group's loan loss coverage ratio stood at 339.5%. Including regulatory reserves, it stood at 359.6%.

The group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at a healthy level of 14%, 14% and 17.1% respectively, after deducting the second interim dividend.

The liquidity coverage ratio also remained stable at 123.2%.

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Public Bank , Public Mutual , Teh Hong Piow


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