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Public Bank Group Recorded RM6.49 Billion Pre-Tax Profit For 2015 And Declared Second Interim Dividend Of 32 Sen

For Immediate Release

3 February 2016

Public Bank Group Recorded RM6.49 Billion Pre-Tax Profit For 2015 And Declared Second Interim Dividend Of 32 Sen

 
 Chairman’s Review
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr Teh Hong Piow announced today that “The Public Bank Group achieved yet another milestone financial results in 2015 with pre-tax profit of RM6.49 billion, surpassing the RM6.0 billion mark for the first time. This represents 11.6% growth from the pre-tax profit of RM5.81 billion achieved a year ago. Net profit attributable to shareholders grew by 12.0% to RM5.06 billion, translating to a net return on equity of 17.8% for 2015.” The Group’s operating revenue rose by 13.8% to RM19.2 billion from RM16.9 billion a year ago.
 
On a quarterly basis, the Public Bank Group recorded a net profit attributable to shareholders of RM1.49 billion in the fourth quarter of 2015. This represented a growth of 19.0% as compared to RM1.25 billion achieved in the previous corresponding quarter. Similarly, pre-tax profit for the quarter also grew by 18.5% to RM1.86 billion as compared to the previous corresponding quarter.
 
The Malaysian economy is faced with increasing challenges arising from low commodity prices, volatility in the financial market and the weak external environment. Against the macro backdrop, the Public Bank Group continued to demonstrate resilience in performance by achieving healthy loan growth of 11.6% and deposit growth of 8.9%. The results reflected the consistent execution of the Group’s organic growth strategy which continues to deliver favourable results to our customers and our shareholders,” commented Tan Sri Teh.

Tan Sri Teh further added that, “With the favourable financial performance, not only did the Group continue to preserve its coveted track record of 49 years of unbroken profitability since the commencement of its operations, it also continued to stand out amongst its Malaysian banking peers by delivering the highest net return on equity of 17.8%, as well as the best in asset quality and cost efficiency.”
 
In view of the Public Bank Group’s commendable performance in 2015, Tan Sri Teh announced that, “The Board of Directors has declared a second interim dividend of 32 sen, taking full year dividend for 2015 to 56 sen.” The total dividend paid and payable for 2015 amounted to RM2.16 billion and represents a total payout of 42.7% of the Group’s net profit for 2015.
 
Healthy Growth in Loans and Deposits
 
For the financial year ended 31 December 2015, the Public Bank Group sustained a healthy loan growth momentum at a rate of 11.6%. Domestic lending business grew by 10.3% over the same period, outpacing the domestic banking industry’s loan growth rate of 7.9%.
 
The Public Bank Group’s loan growth was mainly attributed to the lending growth in its retail banking segment, comprising financing for the purchase of residential properties and passenger vehicles, as well as extension of credits to small and medium enterprises. The Group’s retail loan portfolio collectively accounted for 86% of its total loans.
 
Despite the challenging operating environment, the Group’s total customer deposit has also recorded a healthy growth rate of 8.9% during the year. The Group’s domestic customer deposit grew by 7.5%, significantly higher than the domestic banking industry’s growth rate of 1.8%.

“The Group’s robust funding position was mainly supported by its strong retail franchise and large domestic depositor base of over five million customers who continue to place their trust and confidence in the Group in safeguarding their funds,” remarked Tan Sri Teh.
 
With the steady inflow of customer deposits, the Public Bank Group remains well funded with a healthy net loan to deposit ratio of 90.3% as at the end of 2015.
 
Sustaining Growth in Non-Interest Income
 
Tan Sri Teh highlighted that “Growing fee-based revenue remains as a key strategic focus of the Public Bank Group.” Arising from the Group’s initiative to drive growth of its non-interest income in order to sustain better return for its shareholders, the Group’s non-interest income increased by 22.4% in 2015 as compared to 2014. This was mainly contributed by higher income from its unit trust business, foreign exchange related transactions and fee income from banking operations.
 
The Public Bank Group’s unit trust management business undertaken by its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the non-interest income growth of the Group. For the year 2015, fee income from unit trust business made up 33% of the Group’s total non-interest income. As at the end of 2015, Public Mutual manages 122 funds with a total net asset value of RM64.8 billion and has remained as the market leader with an overall retail market share of 48.9% in the private unit trust business. The Public Bank Group will continue to enhance and invest in the infrastructure and the wide distribution network of Public Mutual, while ensuring appropriate risk management processes are in place to safeguard the investment of funds of its customers.
 
Sustained High Productivity and Cost Efficency
 
“The Public Bank Group continued to be the most efficient banking group in Malaysia with its low cost-to-income ratio of 30.5% as compared to the banking industry’s average cost-to-income ratio of 45.5%,”  said Tan Sri Teh.
 
Tan Sri Teh added that, “The Group is committed to continue with prudent cost discipline at all times and to consistently pursue high productivity and cost efficiency in all aspects of its operations, prioritising the investment and deployment of resources and technology to where they are most effective without compromising on compliance and service quality.”
 
Superior Asset Quality
 
Tan Sri Teh highlighted that, “Amidst the prevailing economic uncertainties and challenges, the Public Bank Group continued to demonstrate resilience in its asset quality.”
 
As at the end of 2015, the Public Bank Group’s impaired loan ratio remained low at 0.5%, significantly lower than the industry ratio of 1.6%. The Group’s loan loss coverage ratio of 120.8% as at the end of 2015 was also higher as compared to the Malaysian banking industry’s ratio of 96.2%.
 
Tan Sri Teh further added, “To safeguard its strong asset quality while maintaining steady growth in its lending business, the Group will continue to adopt prudent approach and practices in managing the quality of its loan portfolio right from origination to the recovery of impaired loans. These include establishing strict and prudent credit policies, as well as putting in place efficient and effective approval and recovery processes.
 
Overseas Operations
 
The pre-tax profit of the Public Bank Group’s overseas operations grew by 32.5% from RM431.9 million in 2014 to RM572.2 million in 2015, contributing 8.8% to the Group’s overall pre-tax profit for 2015. Excluding the effect of favourable foreign exchange impact on the Group’s Overseas Operations, the pre-tax profit growth was 12.5% mainly contributed by Cambodian Public Bank Plc, a wholly-owned subsidiary of Public Bank, which registered a pre-tax profit growth of 15.7% to USD58.5 million as compared to 2014.
 
Tan Sri Teh commented that, “The Group remains committed to expand its presence in the region through organic growth strategy and will continue to transfer its best practices from its domestic operations to accelerate business growth in its overseas operations.”
 
Healthy Capital Position
 
The Public Bank Group continued to maintain a healthy level of capital with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 10.9%, 12.0% and 15.5% respectively as at the end of 2015, after deducting the second interim dividend.  
 
Tan Sri Teh emphasised that, “Public Bank will continue to be proactive in its capital management in order to ensure that the Group’s capital position remains healthy at all times in support of the Group’s business growth strategies and maximising its shareholder value while balancing the need for higher capital retention as required under the Basel III capital regime.” 
 
Group’s Prospect
 
“Outlook for the Malaysian economy is expected to remain steady, but there are challenges ahead. Gross Domestic Product growth is expected to be between 4.0% and 4.5% in 2016. On the banking industry front, we expect intense competition for market share and the more stringent capital and liquidity requirement, will continue to put pressure on net interest margin and return on equity.
 
The Public Bank Group will continue to pursue organic growth strategy in the core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance. Facing the challenges ahead, the Public Bank Group’s key priorities are to accelerate business innovation and pursue operational efficiency in order to deliver the Group’s commitment to excellence to all its stakeholders.
 
Public Bank has over the last 49 years, established its leading position in the banking and finance industry. Moving into our 50th year anniversary in 2016, we are confident that we are well positioned for sustainable growth into the future.” concluded Tan Sri Teh.


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

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Public Bank Berhad Launches The PB MasterCard Lifestyle Debit

For Immediate Release

22 January 2016

Public Bank Berhad Launches The PB MasterCard Lifestyle Debit
 
Public Bank Berhad launched the PB MasterCard Lifestyle Debit, exclusively to the Bank’s banking customers of all segments. It is tailored for the market as a combo debit card which function as an ATM card, domestic and international debit card thus enabling retail transactions to encourage customers to go cashless.
 
Using the PB MasterCard Lifestyle Debit, customers will be entitled to a 1.0% Cash Back for Overseas Retail Transactions and Overseas Online Transactions. The cash back will be credited into the banking account on a monthly basis. This helps to relieve the burden of PB travelers carrying cash when they are traveling around the world and this will further galvanize the cashless initiative.
 
The new debit card features MasterCard Contactless which enables payments with a simple tap at any contactless-enabled payment terminal at over 3 million merchants worldwide. No signature or PIN is required as long as the retail purchase is RM250 and below. This added feature will further enhance PB customer’s experience enabling them to spend less time queuing at the cashier counter by offering a secure, fast and convenient way to pay for everyday purchases.
 
For the launch promotion, Public Bank will reward the first 10,000 qualified Public Bank Lifestyle Debit Cardmembers with a RM38 Cash Back upon three retail transactions of any amount charged on the card within the first month from card issuance date.
 
To find out more about this Card, customers are invited to meet our customer service representatives at any of our branches, log on to Public Bank’s website at or call PB Customer Service at 03-2176 8000. Terms and conditions apply.
 
About MasterCard
 
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardAP and @MasterCardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
 
About Public Bank Berhad
 
Founded in 1966 by Tan Sri Dato’ Sri Teh Hong Piow and listed on the Main Board of Bursa Securities Malaysia in 1967, Public Bank 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 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.
 
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“PB Golden Fortune Brings You Happiness, Prosperity And Success” - Public Bank Offers 24K Gold-Plated Gifts

For Immediate Release

13 January 2016

“PB Golden Fortune Brings You Happiness, Prosperity And Success” – Public Bank Offers 24K Gold-Plated Gifts

To celebrate the upcoming Chinese New Year, ‘PB Golden Fortune’ campaign is back to reward our loyal customers. The campaign is open to all new and existing Public Bank customers from now until 30 April 2016.
 
Two exquisite limited edition 24K gold-plated auspicious gifts consisting of a plus size gift namely “Fu Lu Shou” and a standard size gift namely “Blissful Prosperity Peony” are up for grabs. These gifts are exclusively designed where each gift represents a magnificent piece of gold craft that symbolizes great blessings and good fortune. The gifts are limited and only available while stock lasts.
 
There are two packages i.e. Golden Package and Fortune Package for customers’ selection. Customers can either deposit in PLUS Current/Savings Account (PLUS CASA) or combine investment (Unit Trust Funds or Gold Investment Account) with Current/Savings Account in order to get the exclusive gift(s). Golden Package offers one Blissful Prosperity Peony and Fortune Package offers one Fu Lu Shou.
 
This campaign is designed for customers who are looking for a diversified array of investment products in achieving their financial goals. Customers can choose from a vast selection of Unit Trust funds to cater to their various risk appetites in order to achieve their financial goals through proper financial planning. In addition, Gold Investment Account has remained a popular investment tool to safeguard wealth. For customers who simply want to save their monies, they can choose to deposit in PLUS CASA.
 
Just select the Golden Package or Fortune Package of your choice and be rewarded with the limited edition 24K gold-plated gift(s). Collect both designs or collect bundles of gifts by signing up for multiple packages!
 
To find out more about this Campaign, customers are invited to meet our Financial Executives at any of our branches, log on to PBB website at www.pbebank.com or call free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.
 
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Comments On The Budget 2016

Note To Editors:
This press release is issued by
Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

23 October 2015

Comments On The Budget 2016
 
Faced with increased uncertainties and volatilities in the current economic and financial environment, we recognise that the crafting of Budget 2016 is indeed a challenging task as it requires a balancing act of sustaining economic growth and addressing issues of rising cost of living, while ensuring continued fiscal prudence. 
 
On the Federal Government finance, we support the Government’s firm and continued commitment to address the country’s fiscal challenge by further reducing the budget deficit to 3.1% of GDP, amid the more subdued growth in its revenue base. The continued discipline in managing the Federal Government’s operating expenditure should augur well towards the efficient utilisation of the Government’s income and strengthening its fiscal position. 
 
We welcome the Government’s pragmatic measures to support a sustainable economic growth. The continued engagement on investing in large-scale and high-impact development projects, infrastructure spending, as well as measures in energising the small and medium enterprises should create multiplier effects that will bode well for the economy and build capacity for the future.
 
We are glad that Budget 2016 continues to put priority on raising productivity and innovation, as well as enhancing our human capital. These are critical ingredients for Malaysia to progress towards becoming a high-income advanced economy, because such a status of success should not just be measured by capital wealth and economic statistics, but more importantly the overall quality and well-being of our people. We certainly hope all the planned and proposed measures in these areas will effectively be implemented.  
 
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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

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Public Bank Group Achieved 9.3% Growth In Net Profit Attributable To Shareholders To RM3.57 Billion For The First Nine Months Of 2015

For Immediate Release

22 October 2015

Public Bank Group Achieved 9.3% Growth In Net Profit Attributable To Shareholders To RM3.57 Billion For The First Nine Months Of 2015

Chairman’s Review
 
The Public Bank Group posted another favourable set of financial results for the third quarter of 2015”, announced Tan Sri Dato’ Sri Dr. Teh Hong Piow, Founder and Chairman of Public Bank.
 
Tan Sri Teh highlighted that, “For the first nine months ended 30 September 2015, the Public Bank Group reported 9.3% year-on-year growth in the net profit attributable to shareholders to achieve RM3.57 billion. The Group’s pre-tax profit grew by 9.1% to RM4.63 billion during the same period. These results were driven by sustained growth performance in the Group’s loan and deposit, as well as the Group’s non-interest income which posted 20.7% growth in the first nine months of 2015. Gains arising from favourable foreign exchange movement in respect of the Group’s foreign operations have also partially contributed to the profit growth for the period.”
 
Although the operating environment is getting more challenging, with subdued sentiment and confidence, the Public Bank Group continued to demonstrate resilience in performance by achieving a commendable annualised loan growth of 12.5% and an annualised deposit growth of 9.5%.
 
Tan Sri Teh further added that, “The Public Bank Group continues to stand out amongst its Malaysian banking peers by achieving a high net return on equity of 16.9%. The Group’s asset quality and cost efficiency continued to be the best amongst its domestic banking peers with the lowest gross impaired loan ratio of 0.53% and cost-to-income ratio of 30.7% in the first nine months of 2015.”
 
Sustaining Growth Momentum in Loans and Deposits
 
For the first nine months ended 30 September 2015, the Public Bank Group sustained a healthy loan growth momentum at an annualised rate of 12.5%. Domestic lending business grew at an annualised rate of 10.5% over the same period, outpacing the domestic banking industry’s annualised loan growth rate of 8.2%.
 
Lending to the retail banking segment remained the key focus of the Public Bank Group, with extension of credit mainly to small and medium enterprises as well as for purchasing of residential properties and passenger vehicles. As at the end of September 2015, the Group’s retail loan portfolio collectively accounted for 86% of its total loans. The Group’s lending to small and medium enterprises recorded an annualised growth of 16.3% in the first nine months of 2015.
 
Tan Sri Teh added that, “The Public Bank Group’s funding and liquidity position remained supportive of its lending activities, backed by its strong retail deposit franchise with a large domestic depositor base of over 5 million customers. The Group’s total customer deposits grew at an annualised rate of 9.5%, with domestic customer deposits growing at an annualised rate of 7.4%, which was significantly higher than the domestic banking industry’s annualised deposit growth of 0.4%. ”

The healthy domestic deposit growth was mainly contributed by steady inflow of core deposit comprising fixed deposits, low cost savings and current accounts, which grew by an annualised rate of 12.9%. As a result, the Group continued to maintain a healthy loan-to-deposit ratio of 89.8% as at 30 September 2015.
 
Commendable Growth in Non-Interest Income
 
Non-interest income of the Public Bank Group grew by 20.7% in the first nine months of 2015 as compared to the corresponding period in 2014, mainly driven by income from higher unit trust business, foreign exchange related transactions and transactional banking services.
 
Tan Sri Teh said that, “The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to register a favourable performance during the period and contributed 33.8% to the total non-interest income of the Group for the nine months period ended 30 September 2015. As at 30 September 2015, Public Mutual had 119 funds with total net asset value of RM64.2 billion under its management. It remained as the market leader in the private unit trust business, capturing 48.4% of the retail market share as at the end of August 2015, with 58.8% and 60.7% market share in the equity and Islamic unit trust fund sectors respectively.
 
Prudent Cost Management
 
Tan Sri Teh highlighted that, “The Public Bank Group remained the most cost-efficient bank in Malaysia with its cost-to-income ratio of 30.7% in the first nine months of 2015 as compared to the banking industry’s average ratio of 45.5%.”
 
“To ensure cost sustainability amidst 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
 
“Despite the double-digit growth in its loan portfolio year after year amidst the continuously challenging environment in the markets in which it operates, the asset quality of the Public Bank Group remained resilient with a low gross impaired loan ratio of 0.53% as at the end of September 2015, significantly lower than the Malaysian banking industry’s gross impaired loan ratio of 1.6%,” said Tan Sri Teh.
 
The strong asset quality of the Group is due to a combination of preventive and proactive measures taken such as establishing strict and prudent credit policies, advocating strong discipline and “know your customer” culture in the credit assessment and approval processes as well as ensuring effective and efficient recovery processes.
 
Tan Sri Teh added that, “The Public Bank Group's loan loss coverage ratio stood at 130.8%, which was higher and more prudent than the banking industry's coverage ratio of 97.6%.”
 
Overseas Operations
 
For the first nine months of 2015, the Public Bank Group’s overseas operations contributed 10.0% of the Group’s overall pre-tax profit as compared to 7.5% contribution in the previous corresponding period, partly due to favourable foreign exchange movement. Tan Sri Teh added, “Cambodian Public Bank Plc, a wholly-owned subsidiary of Public Bank, registered another set of favourable results with pre-tax profit increasing by 14.2% to USD45.6 million as compared to USD40.0 million recorded in the last corresponding period.”
 
Sustaining 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 10.2%, 11.4% and 14.8% respectively as at the end of September 2015.
 
Tan Sri Teh emphasised that, “We will continue to ensure that the Group’s capital position remain healthy in support of the Group’s business growth strategies by balancing the need for higher capital retention in view of the requirements under the Basel III capital regime whilst maximising our shareholders’ return.”
 
Group’s Prospect
Going forward, the Malaysian economy is expected to continue growing despite increased challenges from the global and regional developments as well as moderating domestic sentiment. The continued expansion in domestic demand will remain supportive of the banking sector and drives growth in the banking business.
 
“Our strategies for the Public Bank Group is to remain focused on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance. The Group will continue to leverage on its strong PB brand and its wide and efficient branch network as well as its excellent customer service to support long term sustainable growth,” remarked Tan Sri Teh.
 

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

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Tan Sri Teh Hong Piow Receives The Prestigious William “Bill” Seidman Lifetime Achievement In Financial Service Industry Award 2015 By The Asian Banker

For Immediate Release

6 August 2015

Tan Sri Teh Hong Piow Receives The Prestigious William “Bill” Seidman Lifetime Achievement In Financial Service Industry Award 2015 By The Asian Banker

 
Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow was a proud recipient of the prestigious William “Bill” Seidman Lifetime Achievement in Financial Service Industry award for 2015 by the Singapore-based The Asian Banker, the region’s most authoritative provider of strategic business intelligence to the financial services community.
 
The award was presented to Tan Sri Teh by the Chairman and CEO of The Asian Banker, Mr. Emmanuel Daniel at a brief ceremony held at Menara Public Bank, Kuala Lumpur on 28 July 2015.
 
The presentation of the William “Bill” Seidman Lifetime Achievement in Financial Service Industry award to Tan Sri Teh was in recognition of Tan Sri’s achievement in building Public Bank and the Public Bank Group into a leading financial institution in Malaysia and the Asia Pacific.
 
The William “Bill” Seidman Lifetime Achievement in Financial Service Industry award recognises individuals who reshaped not only the institutions that they worked for, but the entire financial services industry in their respective countries and regions. The Asian Banker seeks to recognise people who are considered giants in the industry because of the lifetime contributions and leadership.
 
“This is the most prestigious of the achievement awards, as it recognises those who have distinguished their reputations, skills and achievements over a lifetime, setting the benchmark from which others are assessed. The winner of this year’s William “Bill” Seidman Lifetime Achievement in Financial Service Industry award is a rare breed of founding chairman of private commercial banks. Tan Sri Dato’ Sri Dr. Teh Hong Piow, Founder and Chairman of Public Bank and the Public Bank Group has the distinction of presiding over the top privately owned commercial bank in Malaysia, which also has a substantial and growing presence in the region, including Greater China,” said Mr. Emmanuel Daniel in his citation.
 
“The bank that he has founded is highly respected and looked at by industry peers as offering best practices in various areas that they hope to emulate and benchmark against. For example its 48 years of unbroken profit track record, above industry return on equity (averaging in the high twenty percent before the new Basel III capital norms) and very impressive cost to income efficiency, in the low 30%. All these made possible by the consistent management focus and strategy that he had established and put in place”, added Mr. Emmanuel Daniel.
 
Tan Sri Teh in his acknowledgement said, “Being the founder of Public Bank and seeing it grow all these years gives me great satisfaction. Looking back, what counted most was to promote excellence and build a strong corporate culture. A culture of discipline and integrity, thereby earning customers’ trust. Like all dreams, mine is only possible with the support of my Public Bank family and members of my board. I would also like to dedicate this award to our customers, shareholders and business associates. My thanks also goes to the Malaysian government for creating a business friendly climate”.
 
With this award, Tan Sri Teh who turned 85 this year has received a total of 43 personal to holder awards in recognition of his exemplary commitment to excellence and lifetime dedication to the banking industry.
 
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Tan Sri Teh Hong Piow being presented with the award by the Chairman and CEO of The Asian Banker, Mr. Emmanuel Daniel. Sharing the moment are (from left) Mr. Quah Poh Keat, Deputy CEO of Public Bank, Tan Sri Tay Ah Lek, Managing Director of Public Bank and Mr. Foo Boon Ping (far right), Managing Editor of The Asian Banker

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Tan Sri Teh Hong Piow receiving the William “Bill” Seidman Lifetime Achievement in Financial Service Industry award from the Chairman and CEO of The Asian Banker, Mr. Emmanuel Daniel in the presence of Tan Sri Tay Ah Lek, Managing Director of Public Bank
 
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Public Bank Group Achieved 14.2% Growth In Net Profit Attributable To Shareholders For The First Half Of 2015 And Declares 24 Sen First Interim Dividend

For Immediate Release

30 July 2015

Public Bank Group Achieved 14.2% Growth In Net Profit Attributable To Shareholders For The First Half Of 2015 And Declares 24 Sen First Interim Dividend

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to announce that, “The Public Bank Group recorded a commendable set of half year results with its net profit attributable to shareholders increasing by 14.2% year-on-year to RM2.37 billion for the half year ended 30 June 2015. The Group’s pre-tax profit grew by 12.1% to RM3.02 billion during the same period. The profit growth during the period was mainly attributed to the healthy growth in loans and deposits, and stable asset quality.  Gains arising from foreign exchange fluctuation in respect of the Group’s foreign operations have also partially contributed to the profit growth for the period. ”
 
Tan Sri Teh commented that, “The operating environment in the first half of 2015 has become more challenging with increasing concerns in growth sentiment, following the uncertainties in the global economic developments as well as domestic factors. Despite facing the challenging environment, the Public Bank Group has remained steadfast and continued to perform well in the first half of 2015, recording a healthy loan growth of 11.2% on an annualised basis to RM258.8 billion as at the end of June 2015.
 
In tandem with the Group’s healthy loan growth, its customer deposits recorded an annualised growth of 13.6% to RM295.3 billion as at the end of June 2015. As a result, the Group maintained a stable and healthy loan-to-deposit ratio of 87.0% as at 30 June 2015.”
 
Tan Sri Teh further added that, “The Public Bank Group continues to rank highly amongst its banking peers in Malaysia in term of profitability and cost efficiency with the highest net return on equity of 17.2%, while maintaining the lowest gross impaired loan ratio of 0.54% and cost-to-income ratio of 31.1%.”
 
“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 24 sen, which will result in a total dividend payout of RM926.8 million. The first interim dividend will be paid on 24 August 2015 based on the dividend entitlement date of 14 August 2015.” said Tan Sri Teh.
 
Healthy Growth Momentum in Loans and Deposits
 
For the first half year ended 30 June 2015, the Group recorded a healthy loan growth at an annualised rate of 11.2%, largely supported by its annualised domestic loan growth of 10.5%, which significantly outpaced the domestic banking industry’s annualised loan growth rate of 6.1%.
 
As at the end of June 2015, the Group’s retail lending portfolio collectively accounted for 86% of its total loan, comprising mainly loans to small and medium enterprises (“SMEs”), loans for the financing of residential properties and purchase of passenger vehicles. The Group’s SME lending continued to register strong growth momentum with an annualised growth rate of 16.1%.
 
In line with the healthy loan growth, the Group’s total customer deposits grew at an annualised rate of 13.6%. The Group’s domestic customer deposits grew at an annualised rate of 11.9%, which surpassed the domestic banking industry’s annualised growth rate of 5.3%.
 
The Group’s strong deposit growth was mainly attributed to the steady inflow of core deposit comprising fixed deposits, low-cost savings and current accounts, which grew by an annualised rate of 15.0%.
 
Tan Sri Teh highlighted that, “The Public Bank Group’s funding and liquidity position remained stable and healthy, supported by its strong retail deposit franchise with a large domestic depositor base of over 5 million customers that continue to place their trust and confidence in the Group in safeguarding their funds.
 
Steady Growth in Non-Interest Income
 
Arising from the Public Bank Group’s initiatives to drive the growth of its non-interest income in order to sustain better return for its shareholders, the Group’s non-interest income recorded a steady growth of 15.3% in the first half of 2015 as compared to the corresponding period in 2014. This was mainly attributed to higher income from its unit trust business, foreign-exchange related transactions and transactional banking services.
 
Tan Sri Teh said that, “The Public Bank Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the Group’s financial performance by registering a consistent double-digit growth of 16.5% in its pre-tax profit as compared to the corresponding period in 2014. To-date, Public Mutual manages 114 funds with a total net asset value of RM64.7 billion. It continues to be the market leader in the private unit trust business, capturing an overall market share of 38.4% with 57.1% and 50.6% market share in the equity and Islamic unit trust fund sectors respectively.”
 
Sustainable and efficient cost management
 
In the first half of 2015, the Public Bank Group continued to maintain an efficient cost-to-income ratio of 31.1% as compared to the banking industry’s average cost-to-income ratio of 45.5%. Tan Sri Teh commented that, “The Public Bank Group continues to remain as the most cost-efficient bank in Malaysia. The Group’s consistent pursuit of high productivity and cost efficiency in all aspects of its operations has enabled the Group’s operating costs to remain low and efficient. The ability of the Group to operate in such an efficient cost structure certainly puts the Group in a better financial position, especially in times of challenges.”
 
Superior Asset Quality
 
As at the end of June 2015, the Public Bank Group’s gross impaired loan ratio stood at 0.54%, which is significantly lower than the banking industry’s impaired loan ratio of 1.6%. The Group also maintained a higher and more prudent loan loss coverage ratio of 129.2% as compared to the banking industry's coverage ratio of 100.6%. Tan Sri Teh highlighted that, “The Public Bank Group continues to adopt a prudent approach in managing its credit risks. This is achieved by consistently carrying out a combination of both preventive and proactive measures in its lending activities, such as establishing strict and prudent credit policies, and putting in place efficient and effective approval and recovery processes. As a result, the Group is able to maintain its strong asset quality.”
 
Overseas Operations
 
For the half year ended June 2015, the Public Bank Group’s overseas operations contributed 9.1% of the Group’s overall pre-tax profit. Tan Sri Teh added, “Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, reported another set of strong pre-tax profit growth of 26.0% to USD28.8 million as compared to the corresponding period in 2014, amidst the challenging business environment. Campu Bank remains as one of the top three largest banks in Cambodia.”
 
Healthy Capital Position
 
The Public Bank Group is well-capitalised to support the Group’s organic business growth strategy. As at the end of June 2015, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at a healthy level of 10.7%, 11.9% and 15.4% respectively, after taking into account the provision for first interim dividend.
 
Tan Sri Teh reiterated that, “We will ensure that the Group continues to maintain a healthy level of capital to support the Group’s business growth, as well as to meet the more stringent requirements under the Basel III regime. In this respect, we will continue to balance the need of profit retention for capital growth and maximising return to our shareholders.”
 
Group’s Prospect
 
Tan Sri Teh concluded that, Looking ahead, amidst the challenges and moderating sentiment, the Malaysian economy is expected to still remain on a steady growth path although at a moderate pace.  Steady domestic demand will continue to be supportive of the banking sector and drives growth in the banking business. However, banks are expected to continue to face with net interest margins pressure due to the intense market competition.
 
The Group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance. The Group will also continue to leverage on its strong market position, recognised PB brand, wide and efficient branch network, as well as its excellent customer service to support its long term sustainable growth.
 
Leveraging on these strong fundamentals, the Public Bank Group will continue to enhance its strengths to maintain satisfactory performance for the remaining of 2015.”

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

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Public Bank Break Fast Treat For 150 Orphans

For Immediate Release

8 July 2015

Public Bank Break Fast Treat For 150 Orphans

A break fast treat for 150 orphans from four orphanages was held at the Renaissance Kuala Lumpur Hotel on Monday, 6 July 2015, hosted by Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow in conjunction with the holy month of Ramadan.
 
The children were from Kompleks Penyayang Bakti Sungai Buloh, Asrama Penyayang Nur Iman, Rumah Charis For Children, Good Samaritan Home, Klang.
 
The event was also attended by Public Bank Managing Director, Tan Sri Dato’ Sri Tay Ah Lek and Senior Management Staff who celebrated the joy of ‘buka puasa’ with the orphans. In line with the Bank’s ongoing Corporate Social Responsibility programme, the four homes were presented with a donation of RM5,000 each for their up-keeping by Tan Sri Dato’ Sri Dr. Teh Hong Piow. They were part of the proceeds from the sales of “Lessons of Success”, the book on the inner thoughts and business strategies of Tan Sri Teh.
 
It was more memorable for the children when they each received an angpow of RM100 and a goodie bag comprising of backpack, snacks, cookies and beverages. It is only natural for the Bank to give back to the community by carrying out initiatives which brings it closer to people particularly the underprivileged, a philosophy which is very close to Tan Sri Teh’s heart who firmly believes that good things must be shared.    
 
“The month of Ramadan is not only about fasting and prayer but also of sharing and giving, especially to the less fortunate.  Tonight, it is in keeping with the spirit of giving that we are celebrating the joy of “Berbuka puasa” with children from four selected orphanages. This is Public Bank’s own way of showing we care by ensuring that children like these are always remembered, especially during times of festivities,” said Tan Sri Teh.    
 
Tan Sri Tay Ah Lek in his speech said, “This “Berbuka puasa” session with orphans is especially meaningful to our Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow, who has always been passionate about supporting the youth and underprivileged.  Tan Sri Chairman’s belief that giving is just as important as receiving has positively shaped the Bank’s philosophy on corporate social responsibility.”
 
Indeed with Hari Raya closely approaching, Public Bank hopes that the children would be able to celebrate the festival with added joy and happiness.
 
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Tan Sri Dato’ Sri Dr. Teh Hong Piow (seated) accompanied by Tan
Sri Dato’ Sri Tay Ah Lek posing with the children from the four orphanages

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.Tan Sri Dato’ Sri Dr. Teh Hong Piow (seated) presenting the goodie bag
to one of the orphans accompanied by Tan Sri Dato’ Sri Tay Ah Lek

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Public Bank To Collaborate With Saitama Resona Bank And Kinki Osaka Bank

For Immediate Release

6 July 2015

Public Bank To Collaborate With Saitama Resona Bank And Kinki Osaka Bank

Public Bank Berhad today signed a Memorandum of Understanding (“MOU”) with Saitama Resona Bank, Ltd and Kinki Osaka Bank, Ltd respectively to establish a collaboration to promote and strengthen cooperation between the respective banks and jointly develop business opportunities on the basis of equality and mutual benefit.
 
Saitama Resona Bank and Kinki Osaka Bank are wholly-owned subsidiaries of Resona Holdings, Inc, which in turn also owns Resona Bank, Ltd, the fourth largest banking group in Japan that has strong business presence in the greater Tokyo metropolitan area and the Kansai region. 
 
The business collaborations with Saitama Resona Bank and Kinki Osaka Bank respectively will further facilitate Public Bank’s customers to benefit from the potential and established franchise in Saitama Resona Bank’s home market, Saitama Prefecture and Kinki Osaka Bank’s home market at the Osaka Prefecture.
 
The business collaborations will strengthen the banking services support to the customers of Saitama Resona Bank and Kinki Osaka Bank, particularly in the markets where Public Bank has strong network presence namely Malaysia, Cambodia, Vietnam, Laos, Hong Kong and Sri Lanka.
 
Public Bank and Resona Bank, another bank under Resona Holdings, Inc., had earlier established similar business collaboration through the Memorandum of Understanding signed in 2013.  The business cooperation between Public Bank and the Resona banking group is being strengthened through the further collaborations with Saitama Resona Bank and Kinki Osaka Bank.
 
Saitama Resona Bank has a strong regional bank franchise with 127 branches in total, and 126 of those in Saitama Prefecture, north of Tokyo, with population of over 7.2 million.
 
Kinki Osaka Bank is a top regional bank with 122 branches in Osaka Prefecture. The bank engages in retail banking activities, focusing on not only SME segments but individual segments like residential mortgages and investment trust fund.
 
Japan and ASEAN are major trade partners. Japanese corporations are having active business activities and operations in the ASEAN countries. The collaborations, to be established pursuant to the Memorandum of Understanding, would facilitate Public Bank, respectively with Saitama Resona Bank and Kinki Osaka Bank, to leverage upon their respective strengths and expertise and enable the banks as well as their respective affiliates to establish and promote to their respective customers appropriate banking products and services in Malaysia and Japan. In particular, these services relate to cross border banking transactions and services, which include amongst others, cross border trade settlements, remittance clearance services, credit verification and referrals, and offshore banking service.

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Outline of Saitama Resona Bank, Ltd.
Name Saitama Resona Bank, Ltd.
Head office address 4-1, Tokiwa 7-chome, Urawa-ku, Saitama 330-9088, Japan
President &
Representative Director
Mr Kazuyoshi Ikeda
 
Financial Condition
 
 
 
 
 
 
 
 
Financial Figures (as at March 2015)
 
                                           JPY(million)      USD (million)
Total Assets                        12,583,374              101,889
Deposits                              11,601,963                93,943
Loans                                    6,868,540                55,615
Shareholders’ Equity                 70,000                  566.8
Net Income Capital                                 8.98%
Adequacy Ratio                                     14.26%
Foundation Established in 2002 and started operation in 2003
Rating Moody’s : A2  (long-term)
Number of Branches 127 branches (As at end-June 2015)
Characteristics
 
 
 
 
 
 
 
 
 
 
 
  • Strong franchise in its home market, Saitama Prefecture, with a total population of over 7.2 million and a gross prefectural product of over JPY20 trillion for the financial year ended 31st March 2012 (FYE3/2012).
 
  • In Saitama prefecture, SRB maintains high market share of more than 41% in deposits and 45% in loans through solid relationships with its customers.
 
  • Well-diversified loan portfolio comprises residential mortgage loans at around 60% and loans to small-and-medium-sized enterprises (SMEs) at around 30%.
 
(1 USD = 123.5 JPY)
 
Outline of Kinki Osaka Bank, Ltd.
Name Kinki Osaka Bank, Ltd.
Head office address 4-27, Shiromi, 1-Chome, Chuo-ku, Osaka, 540-8560, Japan
President &
Representative Director
Mr Koji Nakamae
 
Financial Condition
 
 
 
 
 
 
 
 
Financial Figures (as at March 2015)
 
                                           JPY(million)      USD (million)
Total Assets                          3,557,218                28,803
Deposits                                3,257,652                26,377
Loans                                     2,474,100               20,033
Shareholders’ Equity                  38,971                 315.5
Net Income Capital                                  8.86%
Adequacy Ratio                                      10.93%
Foundation Established on 24 November 1950
Rating Moody’s : A2  (long-term)
Number of Branches 122 branches (As at end-March 2015)
Characteristics
 
 
 
 
 
 
 
 
  • Friendly relationship with customers, especially small sized enterprises and individuals.
 
  • Having the advantage over the other regional banks in terms of number of corporate customers in Osaka.
 
  • Well-diversified loan portfolio comprises residential mortgage loans at around 50% and loans to small-and-medium-sized enterprises (SMEs) at around 40%.
 
(1 USD = 123.5 JPY)
 
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(From left) Mr. Yasushi Nakao of Saitama Resona Bank exchanging the MOU with Dato’ Chang Kat Kiam at Menara Public Bank

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(From left) Dato’ Chang Kat Kiam and Mr. Tsuneshi Miyazaki of Kinki Osaka Bank at the Signing Ceremony at Menara Public Bank

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U $ave V Reward -

For Immediate Release

3 June 2015

U $ave V Reward - "Exclusive Gifts For PB Savers"

Public Bank Berhad (PBB) has launched ‘U $ave V Reward’ Campaign which offers exclusive gifts to customers who open or top up their PLUS Current Account (PLUS CA) or PLUS Savings Account (PLUS SA). It is open to all new and existing individual customers from 25 May 2015 to 31 August 2015.
 
Three attractive home appliances i.e. the Morgan Air Fryer, LEBENSSTIL Kollektion Breadmaker and LEBENSSTIL Kollektion Digital Coffee Maker are available for customers’ selection.
 
To participate in this Campaign, customers just need to deposit a minimum amount in either PLUS CA or PLUS SA and allow the amount to be earmarked for 4 months. The deposit must be fresh funds. The complimentary item offered will depend on the minimum deposit amount. Customers can collect all the 3 different items or multiples of the same item so long as they fulfill the minimum deposit requirement for each item. The items are limited and only available while stock lasts.
 
PLUS CA is a current account with cheque book facility and has the option to apply for overdraft facility while PLUS SA is an all-purpose savings account that is suitable for just about anybody.
 
U $ave V Reward Campaign is part of PBB’s initiatives to encourage savings by rewarding our customers when they increase their savings with PBB during the Campaign Period.
 
Hurry up! Just open or top up your PLUS CA or PLUS SA and be rewarded with the exclusive gifts. Collect them all while stock lasts.
 
To find out more about this Campaign, customers are invited to meet our customer service representatives at any of our branches, log on to PBB website at www.pbebank.com or call free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.

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