A+ A A-
Search From :
Between :
Public Bank Bestowed With '50 Years Of Asian Banking Excellence' Award From FinanceAsia On 50th Anniversary

For Immediate Release

8 August 2016

Public Bank Bestowed With ‘50 Years Of Asian Banking Excellence’
Award From FinanceAsia On 50th Anniversary
 
It was not only a celebration of the Golden Jubilee for Public Bank but it was also a celebration of accomplishments and success as the Bank proudly receives the ‘50 Years Of Asian Banking Excellence’ Award from FinanceAsia last Saturday, 6 August 2016 at the Bank’s 50th Anniversary Banquet held at The Mines International Exhibition And Convention Centre. The award was presented to Founder & Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow in the presence of more than 3,000 guests comprising of staff of Public Bank Group.
 
Mr. Jonathan Hirst, Publisher of FinanceAsia in his citation speech expressed his admiration towards Public Bank. He said, “As I got to know Public Bank it struck me how special this financial institution had become. The financial performance and growth of the bank was and still is fantastic.”
 
He continued, “Whichever indicator you look at, the performance was great – loan growth, NPL rates, profits, net interest margin, share price and this was against a backdrop of choppy financial markets, skittish shareholders and mixed macro GDP growth in Malaysia.”
 
“Public Bank has pioneered the retail and SME banking space in Malaysia. Other state owned Malaysian banks may have concentrated on large corporate banking but Public Bank has lent money and help nurture thousands upon thousands of one man band companies that have now become major companies.”
 
According to him, “Many other banks want to expand too quickly, buy overseas banks, or sometimes take too much risk, but Public Bank concentrates on its core business and skills and has delivered 50 years of banking excellence in Asia.”
 
Managing Director, Tan Sri Dato’ Sri Tay Ah Lek in his acknowledgement speech said, “It is a privilege for me to acknowledge on behalf of Public Bank, the award for ‘50 Years of Asian Banking Excellence’ from FinanceAsia. Recognition from such a reputable publication is always an honour.  This is especially so, when FinanceAsia is well acclaimed for celebrating corporate and entrepreneurial achievements which contribute towards the fostering of business excellence. ”
 
He continued, “Tonight’s award is not only a sound recognition of Public Bank’s consistent achievements through the years, it is also a public acknowledgement of our Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow. The award is made even more significant in light of Public Bank’s 50th anniversary celebration tonight.”
 
“With Tan Sri Chairman at the helm, Public Bank continues to be viewed as one of Malaysia's best run and most admired bank; contributing both to the economy and nation,” added Tan Sri Tay.
 
It is indeed a proud moment for all Public Bank staff to share in the joy of receiving such prestigious award that night as it would further spur staff to weather all challenges to surpass our current successes and bring the organisation to an even higher level of achievement. 

TanSriAward-(1).jpg
Tan Sri Dato’ Sri Dr. Teh Hong Piow receiving the award from Mr. Jonathan Hirst

*  *  *  *  *  *
 


 

 

Public Bank Group Achieved Pre-Tax Profit of RM3.20 Billion For The First Half Of 2016 and Declared 26 Sen First Interim Dividend

For Immediate Release

28 July 2016

Public Bank Group Achieved Pre-Tax Profit of RM3.20 Billion For The First Half Of 2016 and Declared 26 Sen First Interim Dividend

Chairman’s Review
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to announce the Public Bank Group’s financial results for the first half year ended 30 June 2016, “The Public Bank Group achieved a pre-tax profit of RM3.20 billion in the first half of 2016, an increase of 6.1% from RM3.02 billion in the corresponding period of 2015. Net profit attributable to shareholders amounted to RM2.49 billion, registering an increase of 5.0% from the same period last year. The improved profitability amid the increasing challenging operating environment shows that the Group’s proactive organic growth strategy with prudent banking practices has remained an edge in the competitive banking landscape.”
 
The Public Bank Group’s improved profit was largely driven by the Group’s continued healthy expansion in loan and deposit businesses, leading to an increase of 9.4% in net interest income. The Group’s domestic lending and deposit base have shown resilient performance despite the challenging operating environment, with domestic loans and deposits growing at healthy annualised rates of 8.3% and 7.4% respectively.
 
Tan Sri Teh added that, “The improved net profit performance translated into a net return-on-equity of 16.2%. Meanwhile, it also reflects the Public Bank Group’s disciplined cost management, as indicated in the Group’s cost-to-income ratio of 32.3%. The Group also continued to exhibit strong asset quality despite the moderating economic environment, with its gross impaired loan ratio remaining low and stable at 0.5%.”
 
“In view of the Public Bank Group’s commendable performance, I am pleased to announce that the Board of Directors has declared a first interim dividend of 26 sen, which will result in a total dividend payout of RM1.0 billion. The first interim dividend will be paid on 22 August 2016 based on the dividend entitlement date of 12 August 2016.” said Tan Sri Teh.
 
Healthy Loan and Deposit Growth

In the first half of 2016, the Public Bank Group’s total loans recorded an annualised growth rate of 7.3% to RM283.5 billion. Domestic loan grew stronger at an annualised rate of 8.3%, significantly higher than 2.2% annualised growth recorded by the banking industry during the period. The sustained growth performance in the Group’s loan business was mainly attributed to the continued expansion of its retail banking segment, comprising financing for the purchase of residential properties, passenger vehicles, and small and medium enterprises.
 
On the funding side, the Public Bank Group’s total customer deposits also grew at a healthy annualised rate of 6.9%. On the domestic front, the Group’s total customer deposits remained on positive momentum, registering a favourable 7.4% annualised growth, as compared to 0.1% growth in the domestic banking industry. 
 
Tan Sri Teh further added that, “The Group’s funding and liquidity position has remained healthy with its loan-to-deposit ratio standing at 90.5% as at the end of June 2016.”
 
Contribution from Non-interest Income

The Public Bank Group continues to widen its revenue stream by growing its non-interest income. Tan Sri Teh said, “The Group’s non-interest income continued to generate revenue for the Group, with the unit trust business, foreign exchange related transactions and fee income from banking operations playing a significant part. The Group has continued to enhance its cross-selling activities and widen its product offerings, while tapping on the Group’s strong retail franchise and extensive delivery channels, to expand our non-interest income.”
 
The Public Bank Group’s unit trust business, undertaken by Public Bank’s wholly-owned subsidiary, Public Mutual, continued to maintain its market leadership in the private unit trust industry despite the challenging market condition. Public Mutual’s retail market share of the Malaysian private sector unit trust industry stood at 49.6% as at the end of May 2016, with 130 funds and a total net asset value of RM67.7 billion under management.

Prudent Approach in Cost Management
 
As at the end of June 2016, the Public Bank Group posted a cost-to-income ratio of 32.3%, significantly better than the banking industry’s average of 48.8%.
 
Tan Sri Teh highlighted that disciplined cost management underpins sustained profitability of the Public Bank Group, “The Group has continued to maintain a low cost-to-income ratio despite the prevailing cost pressure faced by industry players. To best serve the interests of all stakeholder groups, the Group executes careful approach in managing its operating model to ensure best cost efficiency and productivity are carried out while generating revenue growth.”

 Sustained Strong Asset Quality
 
As at end-June 2016, the Public Bank Group’s gross impaired loan ratio stood at 0.5%, as compared to the banking industry’s 1.6%. Tan Sri Teh emphasised, “The Group’s low impaired loan ratio presents a good indication of the Group’s prudent credit administration and risk management practices. While this strengthens customer confidence, it creates considerable headroom for the Group to further grow its business. ”
 
Meanwhile, the impaired loans of the Group was well covered, with loan loss coverage ratio at 116.3% as at end-June 2016, compared to the banking industry’s coverage ratio of 91.2 %. 
 
Overseas Operations
 
For the first half of 2016, the Public Bank Group’s overseas operations contributed 9.4% to the Group’s pre-tax profit. Public Financial Holdings Limited Group and Cambodian Public Bank Plc, both subsidiaries of Public Bank, continued to be the main contributors to the Group’s overseas business growth, generating pre-tax profit of HKD245 million and USD30 million respectively during the period.
 
Having become a 100% wholly-owned subsidiary of the Public Bank Group with effect from 1 April 2016, Public Bank Vietnam Limited stands in good stead to further strengthen the Group’s position in the region, and will continue to explore opportunities in pursuit of revenue growth.
 
Tan Sri Teh said, “The strengthening of Public Bank Group’s business in the region augurs well for its long-term business growth.”
 
Capital Position Well Buffered Against Risk

The Public Bank Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at a healthy level at 11.1%, 12.0% and 15.4% respectively as at end-June 2016, after deducting the first interim dividend. Tan Sri Teh reiterated that “The Group will continue with its proactive capital management to maintain strong and efficient level of capital to sustain growth of the Group’s business.”
 
Group’s Prospect
 
As the major advanced economies remain on a slow recovery pace and growth in most Asian economies moderates, the UK decision to withdraw from the European Union has added to the uncertainties clouding the economy, posing significant downside pressure to global growth. Malaysia, while experiencing a more moderate economic growth coupled with cautious business sentiments, can expect to face continued headwinds in the near term.
 
In such challenging operating environment, the Public Bank Group will continue to focus on its niche in the retail banking business whilst maintaining its prudent credit policies and cost management. The Group remains steadfast in its commitment to uphold sound risk management practices to support sustainable growth. The Group is confident that its strong market position and solid banking fundamentals built over the last 50 years, will continue to lead the Group to steer through the challenges and heading towards achieving another year of favourable results.
* * * * * * *
KSP_0170_EE-(1).jpg

Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

Public Bank To Launch UnionPay Card In Malaysia

For Immediate Release

26 July 2016

Public Bank To Launch UnionPay Card In Malaysia
 
Public Bank, Malaysia’s third largest bank and UnionPay International, a global payment network, signed an agreement for UnionPay Debit Card Issuing Business today. With this partnership, Public Bank will be the first local bank to issue UnionPay card in Malaysia.
 
PB UnionPay Lifestyle Debit Card will be launched to cater to the needs for customers / businessmen particularly for those who frequently travel, offering the convenience of cards payment over carrying large amounts of cash.
 
UnionPay’s acceptance across 160 countries encourage Malaysians who travels often, expatriates and inbound students to take up the card.
 
In Malaysia, UnionPay cards issued locally and overseas are accepted at 80% of ATMs whilst 60% of merchants accept payments by UnionPay cards.
 
The agreement was signed  by Public Bank’s Managing Director, Tan Sri Dato’ Sri Tay Ah Lek and UnionPay International’s Chief Executive Officer, Mr. Cai Jianbo at Menara Public Bank with the presence of other management staff of Public Bank and officials of UnionPay International.
 
Commenting at the launch, Tan Sri Dato’ Sri Tay said, “Being the first local bank in Malaysia to launch UnionPay card once again proves that Public Bank is focused in progressing and improving our core retail business to enhance our customers’ banking experience. It is also a great pleasure in partnering with UnionPay International to offer our customers another new payment option.”
 
Concurring on the significance of this partnership, Mr. Cai Jianbo said, “To issue UnionPay Cards with a leading local brand and institution like Public Bank is a milestone for UnionPay’s Malaysian business. This bodes well for UnionPay’s continued localisation in Malaysia, that we are fully committed to serving local businesses and consumers. And this could not have come at a better time – to celebrate Public Bank’s Golden Jubilee.
 
About UnionPay International
 
UnionPay International (UPI) is a subsidiary of China UnionPay focusing on  international business. In partnership with more than 1,000 institutions worldwide, UnionPay International has extended its card acceptance to 160 countries and regions globally with issuance in over 40 countries and regions. UnionPay International provides high quality, cost effective and secure cross-border payment services to the world’s largest cardholder base and ensures convenient localized services to a growing number of global UnionPay cardholders and merchants.
 
For more information about UnionPay International, please visit www.unionpayintl.com.
 
About Public Bank Berhad
 
Founded in 1966 by Tan Sri Dato’ Sri Dr. Teh Hong Piow and listed on the Main Board of Bursa Securities Malaysia in 1967, Public Bank Berhad is today the leading financial services provider serving over five million customers in Malaysia. Known for its prudent management and strong corporate governance, Public Bank Berhad continues to be accorded international and domestic awards and accolades.
 
The Group continues to commit to deliver excellent customer service and to be more innovative in providing superior financial products and services to meet increasingly sophisticated customer demand. For more information, visit www.pbebank.com.

KNH_1275_E-(1).jpg

* * * * * * *
 

Public Bank And Public Islamic Bank To Reduce Its Base Rate By 23 Basis Points

For Immediate Release

25 July 2016

Public Bank And Public Islamic Bank To Reduce Its Base Rate By 23 Basis Points
 
Public Bank today announced the reduction in its Base Rate and Base Lending Rate/Base Financing Rate by 23 basis points effective 27 July 2016, following the reduction by Bank Negara Malaysia in the Overnight Policy Rate (“OPR”).
 
This will bring Public Bank's Base Rate to 3.52% and Base Lending Rate / Base Financing Rate to 6.72%.
 
The Founder and Chairman of Public Bank, Tan Sri Dato' Sri Dr. Teh Hong Piow said, “In line with the objective of the pre-emptive action by Bank Negara Malaysia to reduce the OPR, Public Bank reduces its lending and financing rates to pass on the benefits to the customers. The move is poised to be a positive catalyst for the Malaysian economy to continue growing on a steady path amid increasing signs of moderating momentum in global economic growth. On a positive note, domestic demand as the main engine of the Malaysian economy will remain supported by monetary accommodativeness, healthy financial condition and stable inflation in the domestic economy.”


* * * * * * * 

Public Bank Gives The Thumbs-Up for Perodua’s First Sedan “Bezza”

For Immediate Release

22 July 2016

Public Bank Gives The Thumbs-Up for Perodua’s First Sedan “Bezza”
 
Perusahaan Otomobil Kedua Sdn Bhd’s (Perodua) first Energy Efficient Sedan, the new Perodua “Bezza” received the thumbs-up from Public Bank during the new sedan Motorcade stop-over at Menara Public Bank in Jalan Ampang, Kuala Lumpur today.
 
Managing Director, Tan Sri Dato’ Sri Tay Ah Lek and Deputy CEO, Dato’ Chang Kat Kiam were on hand to receive the Perodua’s entourage led by Dr. Zahari Husin, Managing Director of Perodua Sales Sdn. Bhd.
 
In his welcoming speech, Tan Sri Tay Ah Lek congratulated Perodua on the launch of Perodua’s first EEV Sedan. Tan Sri Tay said, “Five years ago, Public Bank was proud to be invited to participate in the Perodua Myvi Motorcade. Today, with the unveiling of the New Perodua Bezza, the Bank’s continued participation serves as a show of our commitment in providing financing to Perodua’s new vehicles.”
 
He continued, “Public Bank, being the leading financier in the domestic car market, believes that the new Perodua Bezza will bring our mutually beneficial relationship with Perodua to a higher level. Moving forward, we will ensure that all our Branches and HP Centres nationwide, which specialise in providing hire purchase financing packages, will continue to support all Perodua dealers with our customer-centric service in speedy loan delivery and disbursement of hire purchase loans.”
 
Dr. Zahari Husin in his speech said, “I would like to take this opportunity to thank the Malaysian public as well as our valued customers for their strong support of our brand. It is because of you that Perodua was able to grow and with your honest feedback that we are able to build this car to your needs and wants.”
 
Tan Sri Tay thanked Perodua for its strong support given to Public Bank all these years and said that Public Bank look forward to further strengthen its business relationship with Perodua.

Tan-Sri-Dato-Sri-Tay-Ah-Lek-flagging-off-the-all-new-Perodua-Bezza-(1).jpg
 
 * * * * * * *
 

 

Public Bank Donates RM100,000 To The Underprivileged

For Immediate Release

28 June 2016

Public Bank Donates RM100,000 To The Underprivileged

Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow presented an outright donation totalling RM100,000 to six beneficiary organisations at Menara Public Bank today. This Hari Raya festive charity programme is one of the many CSR initiatives by Public Bank to commemorate the Bank’s 50th Anniversary this year.
 
The aid recipients are the National Cancer Society Malaysia (Children Home of Hope), Pertiwi Soup Kitchen, Pusat Jagaan Orang-Orang Tua Al-Ikhlas, Pusat Jagaan dan Pendidikan Warga Emas Darul Insyirah, Rumah Perlindungan Al Nasuha and Rumah Anak Yatim Nur Qaseh.
 
The cheque presentation was also attended by Public Bank Managing Director, Tan Sri Dato’ Sri Tay Ah Lek and Public Bank Senior Management Staff besides the officials from the organisations.
 
Managing Director, Tan Sri Tay Ah Lek in his welcoming speech said, “CSR initiatives have long been a part of Public Bank’s culture of caring, nurtured 50 years ago by Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow, who believes in putting more into the world than he takes out.”
 
He continued, “As a leading financial institution, Public Bank has always taken its corporate social responsibility at heart. Under Tan Sri Teh’s magnanimous leadership, Public Bank, while prudently growing its balance sheet, is always mindful of its role as a good corporate citizen in the Malaysia society. Public Bank has always shared its success through its many philanthropic acts and sponsorships in its mission to positively impact society and the environment.”
 
“This is Public Bank’s way of saying we care, as it is in practicing generosity with the less fortunate that we get connected and collectively experience “moments of happiness”, especially with festivities around the corner,” Tan Sri Tay further added.
 
Over a space of 10 years, the Bank has donated over RM10 million towards education, health, environment and community causes through various CSR programme such as the tree planting campaign with MNS, Public Bank-PDRM ‘Program Anda Bijak Anda Selamat’, the Public Bank-IJN Half Way House and many others.
 
Although community programmes have long been considered one of the social responsibilities of the government, Tan Sri Teh Hong Piow fervently hold the view that the responsibility should not solely rest on the government.  Private sectors too can put in their effort to support community initiatives.
 
Public Bank will continue to extend financial support with the objective of delivering positive economic and social impact to the communities in which it operates.
 
Indeed, with Hari Raya Aidilfitri just around the corner, Public Bank hopes to bring cheer to the less fortunate.
 

 
Charity-Event-2016-(1).jpg
 
Tan Sri Teh with the six beneficiary recipients at the cheque presentation ceremony. Also present were Tan Sri Tay Ah Lek, Managing Director (third from left) and Dato’ Chang Kat Kiam, Deputy CEO (far right)
 
* * * * * * *
 

 

Public Bank Launches the PB Visa Direct

For Immediate Release

23 May 2016

Public Bank Launches the PB Visa Direct
 
Public Bank Berhad announced the launch of the PB Visa Direct, a new cross-border remittance service where Public Bank retail customers can transfer money to overseas Visa Card through PBe Online Banking and mobile app namely PB engage.
 
Public Bank is the first bank in Malaysia to launch Visa Direct through online and mobile channels.
 
PB Visa Direct allows customers to perform fund transfer quickly, safely and conveniently at anytime and anywhere to over billions of Visa card around the world. It eliminates the hassles in completing detailed information of customer and recipient as it only requires recipient name and 16 digit overseas Visa card number.
 
With PB Visa Direct, fund will be available in the beneficiary’s Visa card account within 30 minutes after the transaction is completed. This applies to Fast Fund enabled Visa cards, or else, the fund will be transferred and credited within 48 hours. Beneficiary can then access the fund to make purchases and withdrawal at ATMs worldwide. Parents can now send money to their children studying abroad to meet living expenses and tuition fees whilst expatriates can pay their outstanding balance on their Visa cards directly.
 
As part of the celebration of this launch, Public Bank Berhad is waiving the service fee of RM10 till 31 July 2016. Moreover, customers who transfer above RM500 will receive 5% Cash Rewards during the campaign period.
 
Present at the launch of PB Visa Direct were Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank Berhad and Mr. Ng Kong Boon, Visa Country Manager for Malaysia at Menara Public Bank in Kuala Lumpur.
 
To find out more about this service, customers are invited to meet our customer service representatives at any of our branches, log on to Public Bank’s website at www.pbebank.com or call PB Card Services Help Desk at 03-2176 8000. Terms and conditions apply.
 
About Visa
 
Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks - VisaNet - that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit, or set rates and fees for consumers. Visa's innovations; however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit www.visa.com.myhttp://visaapnews.asia/ and @VisaNews
 
About Public Bank Berhad
 
Founded in 1966 by Tan Sri Dato’ Sri Dr. Teh Hong Piow and listed on the Main Board of Bursa Securities Malaysia in 1967, Public Bank Berhad is today the leading financial services provider serving over five million customers in Malaysia. Known for its prudent management and strong corporate governance, Public Bank Berhad continues to be accorded international and domestic awards and accolades.
 
The Group continues to commit to deliver excellent customer service and to be more innovative in providing superior financial products and services to meet increasingly sophisticated customer demand. For more information, visit www.pbebank.com.
 

PB-Visa.jpg

From left Public Bank Card Services & Support Director, Mr. Tee Chui Chee, Public Bank Retail Financial Services General Manager, Ms. Chan Chiew Peng, Public Bank Deputy Chief Executive Officer, Dato’ Chang Kat Kiam, Visa Country Manager for Malaysia, Mr. Ng Kong Boon and Visa Head of Sales for Malaysia, Mr. Tony Thong at the launch of PB Visa Direct, a new cross-border remittance service where Public Bank retail customers can transfer money to overseas Visa Card through PBe Online Banking and PB engage


 * * * * * * *

Public Bank Offers Special Interest Rates on Savings Accounts
For Immediate Release

12 May 2016

Public Bank Offers Special Interest Rates on Savings Accounts

In conjunction with Public Bank’s 50th anniversary, Public Bank Berhad (PBB) has recently launched a new deposit campaign known as ‘PB 50th Anniversary Bonus Savers Reward’ which offers bonus interest rates of up to 5% p.a. on selected savings account. The campaign is open to all new and existing PBB customers aged 18 years and above with a valid Malaysian National Registration Identity Card (NRIC).
 
Under the campaign, customers who are holding a PLUS Savings Account (PLUS SA) or Basic Savings Account (Basic SA) and have a minimum incremental Average Daily Balance (ADB) of RM5,000 via fresh deposit throughout the campaign period will be entitled to bonus interest rates. The bonus interest rates ranging from 1.5% p.a. to 5% p.a. will be paid on the incremental ADB of minimum RM5,000 to a maximum of RM300,000 per account. The bonus interest is payable on top of the prevailing interest rates of the customer’s PLUS SA and Basic SA. The bonus interest will be credited into the customer’s account within ONE (1) month after the end of the Campaign Period.
 
Participation into this campaign is fast and simple where customers are only required to register their participation via a ONE (1) time Short Message Service (SMS) during the campaign period, i.e. key in PBSR <space> 12-digit NRIC No. and send to 63633. Customers who performed SMS registration for the Campaign will receive an auto reply SMS message confirmation from PBB at no cost.
 
‘PB 50th Anniversary Bonus Savers Reward’ will run for a period of 3 months until 31 July 2016. As this is an attractive offer for customers who wish to earn higher interest, customers are encouraged to participate in the campaign using fresh funds to be eligible for the bonus interest.
 
Moving forward, PBB will continue to launch more attractive campaigns to reward customers for their loyalty and patronage via a wide range of products and services offered by the Bank.
 
To find out more about our Campaigns, customers are welcomed to visit any of our PBB branches, log on to PBB website at www.pbebank.com or call our free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.
 
* * * * * * *

Web-Banner_Bonus-Savers-Reward_1280x854px-01.jpg

 
Public Bank And KOJADI Signs JomPAY Agreement



For Immediate Release

27 April 2016

Public Bank And KOJADI Signs JomPAY Agreement

Public Bank and Koperasi Jayadiri Malaysia Berhad (KOJADI) officially signed the JomPAY Service Agreement at Menara Public Bank, Kuala Lumpur on 27 April 2016.
 
Public Bank has been appointed by KOJADI as the Master Biller Bank for JomPAY. This tie-up with Public Bank offers KOJADI the convenience of collecting loan repayments from their customers through 40 GIRO participating member banks across Malaysia.
 
The agreement was inked by Public Bank’s Managing Director/Chief Executive Officer, Tan Sri Dato Sri Tay Ah Lek and Deputy Chief Executive Officer, Dato’ Chang Kat Kiam. KOJADI’s Chairman, Datuk Ng Peng Hay and its Honorary Secretary, Dato’ Yik Phooi Hong signed on behalf of KOJADI.
 
To support petty traders, small and medium-sized enterprises (SMEs) and entrepreneurship development, the government had announced in this year’s budget that it will to provide a SME loan totalling RM90 million. KOJADI is one of the appointed bodies managing the loan allocation to these SMEs.
 
Currently, other types of loan being offered by KOJADI include education and micro credit loans. KOJADI is also tasked with the disbursement of loans for Economic Transformation Programmes (ETP) such as Transformasi Kedai Runcit (TUKAR) and Automative Workshop Modernisation (ATOM).
 
JomPAY was launched by MyClear in accordance with the national aspiration to accelerate the adoption of e-payments in Malaysia. By establishing an accessible bill payment eco-system, JomPAY ensures that the consumers can pay bills anywhere and anytime via the secure Internet and mobile banking channels of various banks across the country. For businesses and billers, using JomPAY helps them to collect payments from customers at a minimal cost.
 
The collaboration between the Bank and KOJADI is in line with Bank Negara Malaysia’s directive to migrate cash and cheque payments to e-payments. Bank Negara Malaysia’s initiatives include the introduction of the e-payment incentive fund and card reform framework as measures to accelerate the migration to electronic payments.
 
The Bank has been an active participant in a series of e-payment roadshows and township campaigns on payment card acceptance nationwide organised by Bank Negara Malaysia which is aimed at creating awareness of the developments in the payment industry and educating the public on e-payment services.
 
Public Bank is committed to support Malaysia’s transformation to e-payments and will support new programme to promote e-payment in the future. The Bank has organised extensive nationwide e-Payments Forums to promote the Bank’s comprehensive cash management and e-banking services.
 
press-release-pic-27-April-2016-(2).jpg
 
(From left) Public Bank’s Deputy Chief Executive Officer, Dato’ Chang Kat Kiam, Managing Director, Tan Sri Dato’ Sri Tay Ah Lek and KOJADI’s Chairman, Datuk Ng Peng Hay and Honorary Secretary, Dato’ Yik Phooi Hong at the JomPAY signing ceremony in Menara Public Bank
 
* * * * * * *
Public Bank Group Achieved Pre-Tax Profit Of RM1.65 Billion For The First Quarter Of 2016

For Immediate Release

20 April 2016

Public Bank Group Achieved Pre-Tax Profit Of RM1.65 Billion For The First Quarter Of 2016
 
Chairman’s Review

Public Bank Group today announced its financial results for the first quarter ended 31 March 2016, which reflects continued growth in retail earnings against a backdrop of economic headwinds.
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow announced that, “The Public Bank Group recorded a pre-tax profit of RM1.65 billion, representing a growth of 10.9% as compared to the last corresponding quarter. Net profit attributable to shareholders grew by 5.0% to RM1.23 billion for the same period.”
 
Tan Sri Teh said that, “Having started the year with a positive momentum, the Public Bank Group achieved resilient growth in the first quarter of 2016, with its domestic loans and domestic deposits recording healthy annualised growth of 9.0% and 10.9% respectively. With the resilient deposits growth, the Group continued to sustain a healthy net loan-to-deposit ratio of 89.9% as at the end of March 2016.”
 
Tan Sri Teh further added that, “Despite the challenging operating environment, the Public Bank Group continued to progress and deliver a favourable set of financial results by achieving a net return on equity of 16.1% whilst maintaining its low gross impaired loan ratio of 0.5% and an efficient cost-to-income ratio of 31.5% in the first quarter of 2016. The results are testament to the strength of our business model and reflect the Group’s continued focus on executing our organic growth strategy.”
 
Sustaining Growth Momentum in Loans and Deposits
 
During the first quarter of 2016, total gross loan base of the Public Bank Group increased at an annualised rate of 5.5% to RM277.2 billion as at the end of March 2016. Excluding the effect of foreign exchange fluctuation on its overseas operations, the Group’s annualised loan growth would have been 8.4% during the quarter, supported by its healthy domestic loans growth of 9.0% over the same period.
 
Lending to the retail banking segment remains the key focus of the Public Bank Group, with extension of credit to small and medium enterprises as well as consumer financing for purchase of residential properties and passenger vehicles. As at the end of March 2016, the Group’s retail loan portfolio collectively accounted for 85% of its total loans.
 
Tan Sri Teh commented that, “The Public Bank Group’s funding and liquidity position remained supportive of its lending activities, backed by its strong retail deposit franchise and its superior customer service. The Group’s total customer deposits grew at an annualised rate of 7.3% or 10.1% if excluding the foreign exchange fluctuation effects on its overseas operations. Domestic customer deposits recorded a stable annualised growth of 10.9%, as compared to a 0.04% contraction in the domestic banking industry’s deposit in the first two months of 2016.”

Resilient Growth in Net Income
 
Net income of the Public Bank Group recorded a resilient growth of 10.6% in the first quarter of 2016. This was attributable to the healthy growth of 9.8% in the Group’s net interest income, coupled with a 12.4% growth in its non-interest income.
 
Tan Sri Teh emphasised that, “Besides sustaining a healthy loan and deposit growth which contributes to its net interest income growth, the Group has continued to place great emphasis in growing its non-interest income, leveraging on its strong retail franchise, superior customer service and effective cross selling initiatives. Non-interest income of the Group continued to be driven by its unit trust management business, foreign exchange business and fee income from its banking operations.”
 
The Public Bank Group’s unit trust income constituted one-third of the Group’s total non-interest income. Public Mutual Berhad (”Public Mutual”), the Group’s wholly-owned subsidiary, remained as the market leader in the private unit trust industry with a total net asset value of RM67.2 billion, capturing a retail market share of 49.6%.
 
To further drive the Public Bank Group’s unit trust business, Public Mutual will continue to maintain its strong brand and leading market position in the private unit trust industry in Malaysia through the delivery of efficient customer service to its clients as well as expand and diversify its product range to meet investors’ demand.
 
Observing Prudent Cost Management
 
Tan Sri Teh highlighted that, “The Public Bank Group’s cost-to-income ratio remained efficient at 31.5% in the first quarter of 2016, well below the banking industry’s average cost-to-income ratio of 48.8%, making the Group the most cost-efficient bank in Malaysia.”
 
“To ensure cost sustainability amid the challenging business landscape, the Public Bank Group will continue to practise prudent cost discipline, deploy adequate resources to review and improve its business processes, and ensure optimum utilisation of its infrastructure to further enhance efficiency and productivity while ensuring strict compliance with internal operation standards and procedures,” added Tan Sri Teh.
 
Upholding Asset Quality
 
“The Public Bank Group continued to sustain its resilient asset quality with a stable gross impaired loans ratio of 0.5%, which was significantly lower than the Malaysian banking industry’s gross impaired loans ratio of 1.6%. This is a result of the Group’s consistent adoption of strict and prudent credit policies, coupled with its efficient and effective loan approval and recovery processes,” said Tan Sri Teh.
 
Despite the strong asset quality, the Group has maintained a prudent loan loss coverage ratio of 120.1% as at the end March 2016, higher than the Malaysian banking industry’s ratio of 92.8%.

Overseas Operations
 
For the first quarter of 2016, the Public Bank Group’s overseas operations contributed 9.5% of the Group’s overall pre-tax profit. Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, reported a commendable growth in pre-tax profit of 18.8% to USD16.5 million as compared to the corresponding quarter in 2015.
 
Public Bank had on 24 March 2016 received the 100% foreign-owned bank licence from the State Bank of Vietnam in relation to the Group’s acquisition of the remaining 50% equity capital in VID Public Bank (VPB), the 50:50 joint venture bank with Joint Stock Commercial Bank for Investment and Development of Vietnam.
 
Effective 1 April 2016, VPB has become a 100% wholly-owned subsidiary of the Public Bank Group and renamed as Public Bank Vietnam Limited (PBVN).
 
Tan Sri Teh said that, “The issuance of the 100% foreign-owned bank licence to PBVN will strengthen the Public Bank Group’s regional presence in Indo-China. Campu Bank is currently the third largest bank in Cambodia with a network of 28 branches, whilst Public Bank has 4 branches in Laos PDR. The inclusion of PBVN as a wholly-owned subsidiary augurs well for the Group to maximise its synergy within Indo-China and strengthen the PB Brand within the region.”
 
Ensuring a Healthy Capital Position
 
The Public Bank Group’s capital position remained stable, with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 10.8%, 11.8% and 15.2% respectively as at the end of March 2016.
 
Tan Sri Teh emphasised that, “We will continue to be proactive in our capital management in order to ensure that the Group is well positioned to support its business growth strategies by balancing the need for higher capital retention under the Basel III capital regime whilst maximising our shareholders’ return.”
 
Group’s Prospect
 
“Moving forward, the Public Bank Group will remain focused on driving organic growth in its core retail banking and financing business by leveraging on its strong PB Brand, its wide and efficient branch network and its superior customer service. We will continue to maintain prudent credit policies, as well as upholding strong corporate governance,”  remarked Tan Sri Teh.
 
“Looking ahead in 2016, economic headwinds, intense competition and compression in net interest margins will remain the challenges for the banking sector. However, the Public Bank Group has withstood the challenge of times for the past 50 years and we believe our solid business model and strong footing in the domestic banking landscape will continue to lead us to navigate the challenges ahead and achieve continued sustainable growth,” concluded Tan Sri Teh.
 

200416.jpg

Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

********