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Tan Sri Datuk Seri Utama Thong Yaw Hong, 1930 - 2015

For Immediate Release

29 May 2015

Tan Sri Datuk Seri Utama Thong Yaw Hong, 1930 - 2015

The Members of the Board, Management and staff of Public Bank and its subsidiaries express their deepest condolences to the family of the late Tan Sri Datuk Seri Utama Thong Yaw Hong, the Co-Chairman of Public Bank, who passed away peacefully on 28 May 2015 following a period of illness.
 
Tan Sri Datuk Seri Utama Thong Yaw Hong was appointed as Chairman of Public Bank in 1986 and re-designated as Co-Chairman in 2002. He had also served as Co-Chairman of various companies in the Public Bank Group, which included Public Islamic Bank Berhad; Public Investment Bank Berhad; Public Mutual Berhad; Public Financial Holdings Ltd, Public Bank (Hong Kong) Ltd and Cambodian Public Bank Plc.
 
Tan Sri Datuk Seri Utama Thong Yaw Hong had an illustrious career with the Government of Malaysia, primarily in the fields of socio-economic development planning and finance. He had served in the Economic Planning Unit in the Prime Minister's Department since 1957 and became its Director-General from 1971 to 1978 and served as Secretary-General, Ministry of Finance from 1979 until his retirement in 1986.
 
The Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said today, “We are indeed greatly saddened by the loss. The Boards of Directors of the Public Bank Group acknowledge Tan Sri Datuk Seri Utama Thong Yaw Hong’s par excellence calibre and his invaluable contributions over his 29 years with the Public Bank Group.
 
Tan Sri Datuk Seri Utama Thong Yaw Hong will always be remembered for his stature in the Government service and corporate world. We will miss him.”

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Tan Sri Datuk Seri Utama Thong Yaw Hong
 
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For Immediate Release

18 May 2015

Public Bank Launched PB-Petron Visa Gold Credit Card And PB-Petron Visa Debit Card

Public Bank Berhad, in partnership with Petron Malaysia has launched the new PB-Petron Visa Gold Credit Card and PB-Petron Visa Debit Card that offer rewarding payment options to Petron customers with up to 5% cash rebate on fuel purchases at more than 560 Petron stations nationwide.
 
The new PB-Petron Visa Gold Credit Card extends unlimited 0.5% Cash MegaBonus on other retail purchases and complementary Personal Accident Insurance on top of the up to 5% cash rebates on fuel purchases at Petron stations. New-to-Bank card members are given an option to enjoy a one-time 0% interest Balance Transfer under a 12-month tenure plan.
 
PB-Petron Visa Debit Card card members will enjoy 1% savings on their fuel purchases at Petron stations and unlimited 0.5% Cash MegaBonus on other retail purchases. This card caters to the needs of card members to control expenses while enjoying savings on their purchases.
 
To celebrate this partnership and the launch of these new and innovative cards products, Public Bank Berhad is running a 3-month campaign from 1 April 2015. The first 900 lucky and qualified card members will get free fuel at Petron stations.
 
“It is our pleasure to have Petron, a leading oil and gas company as our co-brand cards partner. This partnership will generate loyal customers to Public Bank and Petron while customers enjoy great rewards and savings with the new co-brand cards. It is a win-win situation for every party,” said Dato’ Chang Kat Kiam, Senior Chief Operating Officer of Public Bank Berhad.
 
“We are pleased to partner with Public Bank to launch these innovative card products packed with rewards and benefits. Petron is committed to deliver more rewarding experiences to customers and motorists alike and these cards give us the opportunity to ‘FUEL HAPPY’ journeys. More importantly, this collaboration allows us to thank customers for their continued patronage,” Petron Retail Head Pn Faridah Ali said.
 
Customers can meet our customer service representatives at any Public Bank branch, log on to our website at www.pbebank.com or call our Help Desk at 03-2176 8000 to apply and find out more information about these cards. Terms and conditions apply.
 
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About Petron
Petron Malaysia is a leading company in Malaysia’s downstream oil market. Its 88,000 barrel-per-day Port Dickson Refinery produces a wide variety of world-class fuels which is distributed through 7 terminals strategically located across the country. Through 560 stations nationwide, it retails premium fuels namely Blaze 97, Blaze 95 and Diesel Max. Petron is committed to its vision to be the leading provider of total customer solutions in the oil sector and allied businesses. For more information please visit www.petron.com.my.
 
Public Bank Group Achieved 15.2% Growth In Net Profit Attributable To Shareholders To RM1.17 Billion For The First Quarter Of 2015

For Immediate Release

20 April 2015

Public Bank Group Achieved 15.2% Growth In Net Profit Attributable To Shareholders To RM1.17 Billion For The First Quarter Of 2015


Chairman’s Review
 
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 yet another commendable set of results with net profit attributable to shareholders increasing by 15.2% year-on-year to RM1.17 billion for the first quarter of 2015. Pre-tax profit grew by 12.2% to RM1.49 billion for the same period.”
 
Tan Sri Teh said that, “The Public Bank Group has a head start in achieving its 2015 targets, particularly in its lending and deposit-taking businesses despite operating in a more subdued operating environment. The Group registered a strong loan growth at an annualised rate of 13.1% and in tandem with that, the Group’s customer deposits also increased favourably at an annualised growth rate of 12.8%.
 
In the first quarter of 2015, the Public Bank Group recorded a net return on equity of 17.1%, gross impaired loan ratio of 0.6% and cost-to-income ratio of 31.0%. Its ability of continuously achieving the best in net return on equity while maintaining the lowest gross impaired loan ratio and cost-to-income ratio has enabled the Group to rank highly amongst its banking peers in Malaysia.”
 
Strong Growth in Loans and Deposits

The Public Bank Group maintained a strong loan growth momentum at an annualised rate of 13.1% in the first quarter of 2015, largely supported by the domestic loans which grew by an annualised rate of 12.1% over the period.
 
As at the end of March 2015, the Group’s retail loan portfolio collectively accounted for 86% of its total loans, comprising mainly financing for the purchase of residential properties and passenger vehicles, as well as lending to small and medium enterprises (“SMEs”). In the first quarter of 2015, the Group’s SME lending continued to register strong growth momentum with an annualised growth rate of 21.1%.
 
The Public Bank Group’s funding and liquidity position remained supportive of its lending activities, backed by its strong retail depositor base of over 5 million customers. The Group’s total customer deposits grew at an annualised rate of 12.8%, with domestic customer deposits growing at an annualised rate of 12.1%.
 
Tan Sri Teh commented that, “The favourable deposit growth was mainly contributed by the steady inflows of fixed deposits, low cost savings and current accounts, which increased by an annualised rate of 14.9%, 12.4% and 12.5% respectively.” He further added that, “For funding purposes, the Public Bank Group will continue to launch attractive campaigns to reward both new and existing retail customers in placing more funds with the Group, as well as be partially supplemented by wholesale deposits. As at the end of March 2015, the loan-to-deposit ratio remained healthy at 88.0%”
 
Commendable Growth in Non-Interest Income
 
In the first quarter of 2015, the Group achieved a commendable growth of 15.7% in its non-interest income as compared to the corresponding quarter in 2014. The strong growth was attributed to higher income from its unit trust business, bancassurance, banking services and investment income.
 
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. For the first quarter of 2015, Public Mutual recorded a strong year-on-year double-digit growth of 20.3% in its pre-tax profit. As at the end of March 2015, Public Mutual managed 114 funds with a total net asset value of RM65.8 billion. It continues to be the market leader in the private unit trust business, capturing an overall market share of 39.1% as at the end of February 2015. It also has the highest market share of 58.6% and 50.9% amongst the private unit trusts companies in Malaysia, in the equity and Islamic unit trust fund sectors respectively.”
 
The Public Bank Group will continue to strengthen its infrastructure and mobilise its resources to capture opportunities to further increase its non-interest income contribution.
 
Sustainable and Efficient Cost Structure
 
Tan Sri Teh further highlighted that, “The Public Bank Group continued to remain as the most cost-efficient bank in Malaysia, with its cost-to-income ratio of 31.0% in the first quarter of 2015 as compared to the banking industry’s average ratio of 45.5%. 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 uncertainty. ”
 
“To ensure cost sustainability amid the challenging business landscape, the Public Bank Group will continue to be prudent in its cost management by ensuring that its resources are aptly deployed to achieve the desired optimum results that can bring tangible values to the organisation and its stakeholders. The Group will continue to strive for higher productivity and operational efficiency while ensuring strict adherence to operation controls and regulatory compliances,” added Tan Sri Teh.
 
Superior Asset Quality
 
The asset quality of the Public Bank Group remained well-controlled and resilient with a low gross impaired loan ratio of 0.6% as at the end of March 2015, significantly lower than the Malaysian banking industry’s gross impaired loan ratio of 1.7%. The loan loss coverage ratio stood at 128.1%, which was higher and more prudent than the banking industry's coverage ratio of 97.9%. Inclusive of the regulatory reserves of RM1.5 billion that the Group has set aside for additional credit risks absorbent, the loan loss coverage of the Group is higher at 233.7%.
 
“While the Public Bank Group continues to extend credit facilities to its customers, the Group will ensure that its superior asset quality is safeguarded at all times by adopting a prudent approach in managing its credit risk. This includes consistent and effective implementation of both preventive and proactive measures in its lending activities, such as establishing strict and prudent credit practices as well as putting in place efficient and effective approval and recovery processes,” said Tan Sri Teh.
 
Overseas Operations
 
For the first quarter of 2015, the Public Bank Group’s overseas operations contributed 8.8% of the Group’s overall pre-tax profit.
 
Tan Sri Teh highlighted that, “Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, continued to report strong growth of 44.8% in pre-tax profit to USD13.9 million for the first quarter of 2015 as compared to the corresponding quarter in 2014, and remains as one of the top three largest banks in Cambodia.”
 
In July 2014, Public Bank entered into an agreement for the acquisition of the remaining 50% equity interest in VID Public Bank (“VPB”) not held by the Group. The State Bank of Vietnam had on 23 March 2015 granted its approval on the acquisition and for Public Bank to transform VPB, the existing joint venture bank, into a 100% foreign-owned bank of Public Bank in Vietnam. Upon completion of the exercise, VPB will become a wholly-owned subsidiary of the Group.
 
Healthy Capital Position
 
The Public Bank Group is well-capitalised to support the Group’s organic business growth strategy. As at the end of March 2015, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at a healthy level of 10.5%, 11.7% and 15.2% respectively.
 
As part of its proactive capital management strategy, the Public Bank Group will continue to monitor its capital position to ensure healthy capital level at all times to support its continuous business growth whilst meeting the more stringent Basel III capital requirements.

Group’s Prospect
 
“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 PB brand and its wide and efficient branch network as well as its excellent customer service to support long term sustainable growth.
 
The Malaysian economy is expected to remain resilient albeit at a more moderate growth pace of 4.5% to 5.5% in 2015, backed by domestic demand. On the banking landscape, we expect continued net interest margin compression due to external headwinds and intense market competition. Despite facing these challenges, the Public Bank Group is expected to maintain its satisfactory performance for the rest of 2015,” 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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Earn Higher Profit Rates Via 'PB TD-i Reward' Campaign

For Immediate Release

8 April 2015

Earn Higher Profit Rates Via 'PB TD-i Reward' Campaign

Public Islamic Bank Berhad (PIBB), a wholly-owned subsidiary of Public Bank, has launched a new campaign, ‘PB TD-i Reward’ which offers promotional profit rates of up to 4.38% p.a. This Campaign will run from 18 March to 30 June 2015.

Term Deposit-i is an Islamic Term Deposit which provides customers the flexibility to manage their funds for short or long-term placement. It is simple to participate. For individual customers, just place a minimum amount of RM10,000 in a 4-month Term Deposit-i subject to a maximum placement of RM10 Million. A minimum and maximum placement of RM30,000 and RM20 Million respectively is applicable to the non-individual customers.

Customers will enjoy a promotional profit rate of 3.98% p.a for the first 4 months. Should they rollover their placements for another 4 months, they will enjoy higher profit rate of 4.28% p.a. (first rollover) and 4.38% p.a. (second rollover).

PIBB launched “PB TD-i Reward” Campaign as a way to show our appreciation to our valued customers for their continuous support and loyal patronage. We will continue to launch more campaigns to reward our new and existing customers.

To find out more about this Campaign, customers are invited to meet our customer service representatives at any of our branches, log on to PIBB / PBB website at www.publicislamicbank.com.my / www.pbebank.com or call free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.

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Public Bank's 49th Annual General Meeting Held on 30 March 2015

For Immediate Release

30 March 2015

Public Bank's 49th Annual General Meeting Held on 30 March 2015

In conjunction with Public Bank’s 49th Annual General Meeting held on 30 March 2015, the Founder and Chairman of Public Bank, Tan Sri Dato’ Sri  Dr. Teh Hong Piow is pleased to present a review of the Public Bank Group’s performance in 2014.

Performance Review

Tan Sri Teh said, “The Public Bank Group registered another year of commendable results in 2014 with a record net profit attributable to shareholders of RM4.52 billion, representing 11.2% growth from 2013. Pre-tax profit grew by 9.5% to RM5.81 billion in 2014.

Tan Sri Teh highlighted that, “Despite a subdued operating environment towards the second half of 2014, the Public Bank Group achieved strong double-digit loans and deposits growth of 10.8% and 10.2% respectively. This was mainly supported by domestic loans and deposits which grew by 10.5% and 9.9% respectively, outpacing the banking industry’s growth rate of 8.7% and 7.6% respectively, hence leading to improved market shares in the domestic market.

Tan Sri Teh added, “In view of the Group’s commendable performance in 2014, a second interim dividend of 31 sen was paid on 5 March 2015. Together with the first interim dividend of 23 sen which was paid in August 2014, the total dividend paid for 2014 was 54 sen.” The total dividend paid for 2014 amounted to RM2.08 billion, an increase of 14% as compared to RM1.82 billion paid for 2013, and represented a total payout of 46.1% of the Group’s net profit for 2014.

Tan Sri Teh said, “The Public Bank Group continues to stand out among the Malaysian banking peers in terms of profitability, cost efficiency and asset quality, with the highest net return on equity of 19.9% and lowest cost to income ratio and gross impaired loans ratio of 30.0% and 0.6% respectively.”

Strong Growth in Loans and Customer Deposits

The Group remained focus on lending to the 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. As at the end of 2014, the Group’s retail consumer and commercial loans and financing portfolio collectively accounted for 86.2% of its total loans and financing.

Tan Sri Teh further added, “The Public Bank Group’s gross loans grew by 10.8% to RM245.0 billion as at the end of 2014. In particular, lending to small and medium enterprises grew at a strong rate of 19.5% in 2014. The Group continued to sustain its No. 1 position in domestic lending for residential mortgages, passenger vehicles and commercial property financing with market shares of 19.4%, 28.1% and 33.6% respectively.

“On the funding side, the Group’s customer deposits grew by 10.2% to RM276.5 billion, mainly supported by domestic deposits growth of 9.9%. The Group’s domestic deposits growth was mainly due to steady inflows of its core deposits comprising savings, demand and fixed deposits, which grew by 7.0% as compared to the Malaysian banking industry’s core deposits growth of only 0.8%.” remarked Tan Sri Teh.

Superior Asset Quality

Tan Sri Teh said, “The Public Bank Group’s gross impaired loans ratio further improved to 0.6%, significantly lower than the industry’s ratio of 1.7%.”

The Group's loan loss coverage ratio of 122.4% as at the end of 2014 was also higher and more prudent as compared to the Malaysian banking industry’s loan loss coverage ratio of 106.3%. Inclusive of regulatory reserves set aside, the Group’s loan loss coverage was significantly higher at 218.6%.

International Operations

The Public Bank Group’s overseas operations grew by 22.4% to RM431.9 million in 2014, contributing 7.4% to the Group’s pre-tax profit in 2014. Tan Sri Teh said, “Cambodian Public Bank Plc registered a strong double digit pre-tax profit growth of 36.5% to USD50.6 million in 2014 and remained one of the top three largest banks in Cambodia.”

Steady Growth in Non-Interest Income

Growing non-interest income remains the key strategic focus of the Public Bank Group. In 2014, the Group’s non-interest income increased steadily by 9.2%, mainly attributed to higher income from its unit trust business, investment income 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 be a key contributor to the Group’s fee-based income. In 2014, Public Mutual registered a double-digit pre-tax profit growth of 14.9% to RM489.9 million. Public Mutual launched nine new funds during the year bringing the total funds under management to 113 funds with a total net asset value of RM63.0 billion. Public Mutual retained its leading position in the private unit trusts business with an overall market share of 39.4% as at the end of 2014, with 58.8% and 50.4% market share in the equity and Islamic unit trust fund sectors,” added Tan Sri Teh.

Healthy Capital Position

Public Bank successfully completed a rights issue exercise in August 2014 which raised a total of RM4.8 billion in equity capital. With the completion of the rights issue, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were further strengthened to a strong level of 10.8%, 12.2% and 15.8% respectively as at the end of 2014, after deducting second interim dividend. The Group is now the second highest capitalised banking group in Malaysia in terms of Tier 1 capital ratio.

Superior Returns to Shareholders

The Public Bank Group continues to deliver consistent and excellent returns to its shareholders over the medium and long term.

Tan Sri Teh highlighted, “If a shareholder of Public Bank had bought 1,000 shares in Public Bank when it was listed in 1967, and assuming the shareholder had subscribed for all rights issues to date and had not sold any of the Public Bank shares, he would have 148,938 Public Bank shares worth RM2.7 million as at 31 December 2014. In addition, he would have received total gross dividends of RM994,669. This translates into a total value of RM3.7 million representing a remarkable compounded annual rate of return of 19.3% for each of the 47 years since 1967.

Over the medium-term of 5 years since the end of 2009, a Public Bank shareholder would have enjoyed an annual rate of return on investment of 14.0% for the five-year period.”

Corporate Responsibility

To promote environment sustainability, the Public Bank Group has adopted the “green” concept in the construction of Public Mutual’s new head office building in Kuala Lumpur, which incorporates a host of green features in the design and layout of the building.

In 2014, the key corporate responsibilities initiatives undertaken included providing continued financial assistance to IJN Foundation for the running of Dormitori Yayasan IJN-Public Bank and the continued support of the Universiti Tunku Abdul Rahman in its research studies in the field of banking and finance. The Group is also an active supporter of projects and events that promote healthcare, education, professional development and community activities.

“The Public Bank Group continues to build sustainable practises in every aspect of the Group’s business. Through the years, the Group serves retail consumers and small and medium enterprises via its core banking business. The Group also plays an active role in promoting domestic and regional trade activities through credit extension and deployment of customer deposits. As a result of its strong profitability track record, the Group continues to be a major contributor to the fiscal revenue of the country with tax payments totalling RM5.24 billion for the past five years,” said Tan Sri Teh.

Recognition of Banking Excellence

Tan Sri Teh commented that, “The Public Bank Group continued to receive external recognitions for banking excellence by reputable international publications and independent organisations.” The awards received include:
  • Best Bank in Malaysia 2014 by Global Finance
  • Best Bank in Malaysia 2014 by FinanceAsia
  • Best Domestic Bank in Malaysia 2014 by Asiamoney
  • Best Domestic Bank in Malaysia 2014 by The Asset
  • Best Managed Company in Malaysia – Large Cap 2014 by Asiamoney
  • Best Retail Bank Malaysia for 2014 by Global Financial Market Review
  • Domestic Retail Bank of the Year - Malaysia 2014 by Asian Banking and Finance
  • Best Bank in Malaysia 2014 and Best SME Bank in Malaysia 2014 by Alpha Southeast Asia
  • Malaysia Best Customer Experience in Banking Award 2014 by Frost & Sullivan
Corporate Governance Awards

Tan Sri Teh said, “The Public Bank Group’s record of excellence in good corporate governance continued to be validated by reputable international publications.” These include:
  • The 4th Asian Excellence Recognition Awards 2014 for Best Corporate Social Responsibility for Malaysia, Best Investor Relations for Malaysia and Best Corporate Communications Team for Malaysia by Corporate Governance Asia
  • Corporate Governance Asia Recognition Award 2014 for Malaysia (Icon on Corporate Governance) by Corporate Governance Asia
  • Asiamoney 25th Anniversary Corporate Governance Poll of Polls for Overall Best Company in Malaysia for Corporate Governance 2004-2013 (except for 2005) by Asiamoney
  • The Asset Platinum Corporate Award 2014 for All-Round Excellence in Financial Performance, Corporate Governance, Social Responsibility, Environmental Responsibility and Investor Relations by The Asset
Outlook

On the strategic directions and outlook for the Public Bank Group, Tan Sri Teh commented that, “The challenging and increasingly regulated business environment as well as intense competition for loans and deposits will continue to impact margins. Facing the challenges ahead, the Public Bank Group will accelerate business innovation and pursue operational efficiency whilst maintaining prudent risk and cost management.

The Group is expected to maintain its earnings momentum and record satisfactory performance in 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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The Public Bank Board of Directors at the Bank's 49th Annual General Meeting

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Public Bank Unveils First Multilingual Mobile Banking App

For Immediate Release

20 March 2015

Public Bank Unveils First Multilingual Mobile Banking App

Public Bank Berhad is pleased to announce the launch of PB engage, a multilingual mobile banking app. PB engage is the first mobile banking app in the banking industry to offer three languages-Bahasa Malaysia, English and Chinese.
                                                 
PB engage is a seamless extension of the bank’s existing PBe Internet Banking. The new app, designed to provide an engaging, secure and fuss free banking on the go, allows users to do their banking in their preferred language.
 
PBe customers can just log in to PB engage using their existing PBe User ID and Password to instantly enjoy the flexibility and convenience of accessing their financial accounts anytime, anywhere.
 
PB engage features a quick guide to help first time users familiarize with the app’s layout and functions.
 
Similar to the PBe website, PB engage has a user friendly interface which utilises colour coded transaction tiles for different functions. The app also allows users to select from a list of shortcuts for instant access to popular transactions.
 
It is designed to be simple and easy to use when viewed on mobile devices.
 
Customers are able to perform balance enquiries, fund transfers, mobile prepaid top ups and payments on the go. With PB engage, Public Bank is confident that we will be able to deliver the most efficient, secure and safe mobile banking experience to our customers.
 
Download of the app is free and is currently made available to smartphones and tablets running on the Apple iOS and Android operating system.
 
To learn more about the new PB engage app and the PBe website, please visit www.pbebank.com or call PBe Customer Support at 03-21795000. 
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Public Bank Chairman Honoured With Three Awards On Birthday

For Immediate Release

17 March 2015

Public Bank Chairman Honoured With Three Awards On Birthday

It was the best icing on the cake for Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow, when he was honoured with not one but three prestigious personal to holder awards last Saturday, 14 March 2015 on his Grand 85th Birthday.
 
Two international publications, Yazhou Zhoukan and The Asset and Malaysia’s branding foundation, the Asia Pacific Brands Foundation presented Tan Sri Teh with the ‘Yazhou Zhoukan Global Chinese Entrepreneur Lifetime Achievement Award 2015’, ‘The Asset Banker Extraordinaire 2015 Award’ and the ‘BrandLaureate ICON of ICONS - The King of Banking Award’ respectively in the presence of 4,000 guests comprising of Board of Directors and senior staff of Public Bank Group at the Mines International Exhibition and Convention Centre, Seri Kembangan, Selangor.
 
Mr. Yau Lop Poon, Editor-in-Chief of Yazhou Zhoukan in his citation speech described Tan Sri Teh as a legend in the global Chinese business community that opened up a new chapter of banking business, changing the power landscape in the banking community in the region that used to be dominated by the Westerners. 
 
Mr. Yau said, “Tan Sri Teh’s lifetime total dedication and devotion to banking is highly commendable. Tan Sri Teh’s whole-hearted commitment to make Public Bank extremely successful year after year in this part of Asia is certainly an inspiration to other bankers and a benchmark for the banking industry.”
 
In conferring ‘The Asset Banker Extraordinaire 2015 Award’ to Tan Sri Teh, its Editor-in-Chief, Mr. Daniel Yu praised Tan Sri Teh for his brilliance in his simplicity.
  
Mr. Yu said, “Fully aware of the responsibility to shareholders, to depositors and to the public at large, Tan Sri built a bank that focused on what he knows best; designed a thoughtful customer service infrastructure around it; constantly improving it to ensure it is able to deliver prompt and consistent service to meet the needs of the bank’s customers”.
 
“After nearly half a century of dedication and perseverance, Public Bank under the leadership of Tan Sri Teh has produced sustained profitability few can match, even among the world’s most powerful banks. It is a world class institution that embodies excellence in customer service, prudence in risk management and exceptional corporate governance,” added Mr. Yu.
 
Dr. KKJohan, President of the BrandLaureate in presenting the ‘BrandLaureate Icon of Icons - The King of Banking Award to Tan Sri Teh said, “Tan Sri Teh is highly regarded as the face and the force of Public Bank. He steers Public Bank to be the largest private commercial bank in the country, with an unprecedented and impressive growth, year after year for the past 49 years, making Public Bank, the pride of many and the envy of all.”
 
Dr. KKJohan continued, “I, as the president of The BrandLaureate is so proud to present to you, Tan Sri Teh, The BrandLaureate Brand ICON Leadership Award - ICON of ICONS - King of Banking Award.  This award is exclusively conferred to only one individual for the year and the recipient must possess extraordinary attributes, one who exudes dynamism, personifies wisdom and integrity and is admired and respected by his country and the world.”
 
“Tan Sri Teh, we hope that tonight is another most defining and memorable moment for you.  In this spirit, we hope that this Award marks another great milestone in the great odyssey of your life, one worthy of everlasting remembrance,” he said.
 
Tan Sri Teh in his acknowledgement speech said, “Recognition from such prestigious publications are always an honour.  This is all the more so when they are well acclaimed for their noble efforts in paying tribute to and celebrating entrepreneurial achievements which contribute towards the fostering of business excellence.  Indeed, I am elated by the triple whammy.  I would also like to thank our guests for their generous and inspiring messages.” 
 
“It is a proud moment for all Public Bank staff to share in my joy of receiving three prestigious personal to holder awards in one night. I would like to dedicate these awards to staff, Members of the Boards and all stakeholders.”
 
With these three additional awards, Tan Sri Teh has received a total of 42 personal to holder awards in recognition of his exemplary commitment to excellence and lifetime dedication to the banking industry.   

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 (From left) Tan Sri Dato’ Sri Tay Ah Lek, Managing Director Public Bank, Dr. KKJohan, Tan Sri Dato’ Sri Dr. Teh Hong Piow, Mr. Daniel Yu and Mr. Yau Lop Poon at the awards’ presentation ceremony 

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Public Bank Group Achieved 11.2% Growth With A Record Net Profit Attributable To Shareholders Of RM4.52 Billion And Declared Second Interim Dividend Of 31 Sen

For Immediate Release

5 February 2015

Public Bank Group Achieved 11.2% Growth With A Record Net Profit Attributable To Shareholders Of RM4.52 Billion And Declared Second Interim Dividend Of 31 Sen

Chairman’s Review

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to announce that, “The Public Bank Group achieved another year of commendable results in 2014 with a record net profit attributable to shareholders of RM4.52 billion, representing 11.2% growth as compared to 2013. Pre-tax profit increased by 9.5% to RM5.81 billion in 2014.”

The commendable 2014 financial results of the Public Bank Group were mainly contributed by the steady growth in net interest income and non-interest income, as well as stable credit costs. Despite facing net interest margin compression, the Group’s net interest income grew by 6.5% during the year, mainly contributed by continued strong loan and deposit growth as well as the positive impact arising from the hike in the overnight policy rate in July 2014 and the rights issue which was completed in August 2014.

“While the Malaysian economy remained resilient through 2014, the growth sentiment has been moderating especially towards the third quarter of 2014 amid the concerns over the volatility in the equity market, weak Ringgit and decrease in oil prices. Despite facing the headwinds, the Public Bank Group persevered and continued to perform well and recorded a strong annual loan growth of 10.8%, outpacing the banking system’s loan growth of 8.7%. In tandem with that, the Group also recorded similar double-digit growth of 10.2% in customer deposits, particularly contributed by its strong customer deposits in respect of its domestic commercial banking operations, which grew by 11.6%, and significantly surpassing the banking system’s deposit growth of 7.6%,” commented Tan Sri Teh.

Tan Sri Teh further added that, “The Public Bank Group continues to stand out among its Malaysian banking peers by delivering the best in return on equity, cost efficiency and asset quality. For the financial year ended 2014, the Group recorded an efficient cost-to-income ratio of 30.0% and maintained its low gross impaired loans ratio of 0.6%. The Group also recorded the highest net return on equity of 19.9% as compared to its peers. Once again, the positive results reinforce the Group’s strategy in pursuing organic growth in the core retail banking business.”

Tan Sri Teh said, “In view of the Public Bank Group’s commendable performance for the year, I am pleased to announce that the Board of Directors has declared a second interim dividend of 31 sen. Together with the first interim dividend of 23 sen which was paid in August 2014, the total dividend for 2014 is 54 sen.”The total dividend paid and payable for 2014 amounts to RM2.1 billion and represents a total payout of 46.1% of the Group’s net profit for 2014.

Strong Growth in Loans and Deposits
 
The balance sheet of the Public Bank Group remained strong and healthy.

“Although the operating environment was subdued towards the second half of 2014, the Public Bank Group was able to continuously keep pace with strong loan growth momentum, registering a growth of 10.8% to RM245.0 billion. The Group continued to sustain its market leadership position in the retail banking segment, comprising extension of financing for the purchase of residential properties, commercial properties and passenger vehicles. Lending to small and medium enterprises had been particularly strong with a growth of 20% in 2014,” remarked Tan Sri Teh.

As at the end of 2014, the Group’s retail loan portfolio collectively accounted for 86% of its total loans.

Tan Sri Teh added that, “On the funding side, the Public Bank Group’s customer deposits grew by 10.2% in 2014 to RM276.5 billion. The Group’s growth in customer deposits in respect of its domestic commercial banking operations was even stronger at 11.6%, mainly due to the strong growth in its savings, current accounts and fixed deposits, which grew by 4.3%, 7.1% and 9.5% respectively as compared to the industry’s savings and current accounts growth rate of 2.4% and 4.7%, and a 1.3% contraction in fixed deposits.”

With the steady inflow of customer deposits, the Public Bank Group remains well funded with a stable net loan to deposit ratio of 88.0% as at the end of 2014.

Steady Growth in Non-Interest Income

The Public Bank Group’s non-interest income improved steadily by 9.2% in 2014 as compared to 2013. This was mainly contributed by higher income from its unit trust business, investment income and fee income from banking operations.

Tan Sri Teh commented that, “The Public Bank Group’s unit trust management business undertaken by its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to be a key contributor to the Group’s overall profit by registering a consistent double-digit pre-tax profit growth of 14.9% in 2014 as compared to 2013. As at the end of 2014, Public Mutual manages 113 funds with a total net asset value of RM63.0 billion and remains as the market leader with an overall market share of 39.4% in the private unit trusts business. Public Mutual also commands market leader position in the equity and Islamic unit trust fund sectors with 58.8% and 50.4% market share respectively as at the end of 2014.”The Public Bank Group will continue to mobilise its resources to focus on enhancing its cross-selling initiatives to both existing and new customers, and strengthening its infrastructure to further increase non-interest income.

Sustained Low Cost-To-Income Ratio

The Public Bank Group’s operating expenses for 2014 increased by 4.1%, mainly attributable to the increase in personnel costs which were in tandem with the increased headcount to support business expansion.

Tan Sri Teh highlighted that, “The Public Bank Group continues to be the most efficient banking group in Malaysia with its low cost-to-income ratio of 30.0% as compared to the banking industry’s average cost-to-income ratio of 45.6%. The Group’s consistent pursuit of high productivity and cost efficiency in all aspects of its operations had enabled the Group’s operating costs to remain low and efficient.

 The Group will continue to prioritise the investment and deployment of resources and technology to where they are most effective in delivering high productivity and efficiency without compromising on compliance and service quality.”

Strong Asset Quality

As at the end of 2014, the Public Bank Group’s impaired loan ratio further improved to 0.6%, significantly lower than the industry ratio of 1.7%. The Group’s loan loss coverage ratio of 122.4% as at the end of 2014 was also higher as compared to the Malaysian banking industry’s ratio of 106.3%.

“To safeguard its strong asset quality while maintaining steady growth in its lending business, the Group will continue to adopt a prudent approach in managing credit risk. This includes consistent and effective implementation of both preventive and proactive measures in its lending activities, such as establishing strict and prudent credit policies as well as putting in place efficient and effective approval and recovery processes,” said Tan Sri Teh.

Overseas Operations

The Public Bank Group’s overseas operations contributed 7.4% of the Group’s overall pre-tax profit for 2014.

Tan Sri Teh commented that “Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, delivered yet another strong set of financial results, with a double-digit pre-tax profit growth of 36.5% to USD50.6 million as compared to 2013 and is amongst the top three largest banks in Cambodia.”

Healthy Capital Position

During the year, Public Bank successfully completed the renounceable rights issue exercise which raised RM4.8 billion equity capital. Its wholly-owned subsidiary, Public Islamic Bank Berhad, also made an issuance of RM500 million Basel III- compliant Subordinated Sukuk Murabahah. Both the exercises were part of the Group’s capital management strategy aimed to further strengthen the Group’s capital position to support its continuous business growth as well as to build an adequate level of capital buffer in preparation for the more stringent capital requirements under the Basel III capital framework.

As a result, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio increased to a strong level of 10.8%, 12.2% and 15.8% respectively as at the end of 2014, after taking into account the provision for second interim dividend. The Group is currently the second highest capitalised banking group in Malaysia in terms of Tier 1 capital ratio.

Group’s Prospect

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 leverage on its strong PB brand and its efficiently-run and wide-reach branch network as well as its delivery of excellent customer service to provide sustainable long term growth.

“The Malaysian economy is expected to be supportive of growth, supported by domestic demand albeit at a more moderate pace. On the banking industry front, we expect the net interest margin compression to persist as the competition for both loans and deposits market share remains intense. Despite the challenges ahead, the Public Bank Group strives to remain resilient by planning to face those challenges while working towards the best.

The Group is expected to maintain its earnings momentum and record satisfactory performance in 2015,” 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 Islamic Bank Launches The Visa Islamic Credit Cards-i

For Immediate Release

30 January 2015

Public Islamic Bank Launches The Visa Islamic Credit Cards-i

Public Islamic Bank Berhad has recently launched the Public Islamic Bank Visa Platinum Credit Card-i and Visa Gold Credit Card-i, offering the market with Shariah-compliant credit cards under Ujrah concept that are exclusively tailored to compliment lifestyle of today’s Malaysian consumers.

The Public Islamic Bank Visa Platinum Credit Card-i is targeting the mass-affluent segment market with a minimum income level of RM60,000 per annum while the Public Islamic Bank Visa Gold Credit Card-i is designed to appeal to income earners of RM24,000 and above. Both cards offer unlimited Hibah Performance Bonus of up to 0.9% and 0.7%, respectively, for retail transactions. As an added privilege, Platinum cardmembers gets 2X unlimited Hibah Performance Bonus for overseas transactions. There is no capping on Hibah Performance Bonus which sets the cards apart from other competitors in the market.
 
Frequent travelers are in for a treat as Platinum cardmembers will be able to enjoy unlimited complimentary access to Malaysia Plaza Premium Lounge with 5 overseas transactions of any amount within 30 days before and/or after each access. To provide peace of mind during travelling, all cardmembers are automatically insured by travel insurance of up to RM2 million.
 
To celebrate the launch, Public Islamic Bank Berhad will reward the first 200 qualified Visa Platinum cardmembers with Barry Smith Luggage and the first 200 qualified Visa Gold-i Cardmembers with Jean-Louis Scherrer watch upon one retail transaction charged on the card within first two months from card approval date.
 
Present at the launch of Public Islamic Bank Visa Platinum Credit Card-i and Public Islamic Bank Visa Gold Credit Card-i at Menara Public Bank in Kuala Lumpur were En. Abu Hassan Assari Ibrahim, CEO of Public Islamic Bank Berhad and Ms. Chan Chiew Peng, General Manager of Public Bank Retail Financial Services, together with Mr. Tolan Steele, Group Country Manager, Regional Southeast Asia for Visa and Mr. Ng Kong Boon, Visa Country Manager for Malaysia. 
 
Commenting at the launch, En. Abu Hassan Assari Ibrahim, CEO of Public Islamic Bank Berhad said, “The Visa Platinum and Gold Islamic Credit Cards-i are the latest products introduced by the Bank as part of our initiative to provide a wider range of Shariah-compliant banking products and services to meet the ever changing needs of our customers, both Muslim and non-Muslim.”
 
“We congratulate Public Islamic Bank on the launch of its new Visa Platinum and Visa Gold Shariah-compliant credit cards. Both cards feature Visa payWave contactless payment technology to provide Malaysian consumers with a faster and more convenient way to pay for everyday purchases. We believe contactless payments will continue to grow as more and more Malaysians experience the benefits of using their contactless payment cards, which is in line with the country’s goal to drive Malaysia into a cashless society,” said Ng Kong Boon, Visa Country Manager for Malaysia.
 
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 www.pbebank.com or  Public Islamic Bank’s website at www.publicislamicbank.com.my or call PB Customer Service at 03-2176 8000. Terms and conditions apply.
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(From left) Mr. Tolan Steele, En. Abu Hassan Assari, Mr. Ng Kong Boon and Ms. Chan Chiew Peng at the launch of Public Islamic Bank Visa Islamic Credit Cards-i

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“Greet The New Year With Golden Rewards” – Public Bank Offers 24K Gold-Plated Gifts

For Immediate Release

1 December 2014

“Greet The New Year With Golden Rewards” – Public Bank Offers 24K Gold-Plated Gifts

To celebrate the upcoming Chinese New Year, ‘PB Golden Fortune’ campaign is back again with golden rewards. It is open to all new and existing Public Bank customers from 1 December 2014 to 31 March 2015.
 
Two exquisite limited edition Golden Gifts of Prosperity named as “The Majestic Golden Goat” and “The Auspicious Koi Fish” are up for grabs. These gifts are exclusively designed where each gift represents a magnificent piece of gold craft that symbolizes good fortune and prosperity. The gifts are limited and only available while stock lasts.
 
There are 3 golden plans namely Unit Trust (UT) Golden Plan, Gold Investment Account (GIA) Golden Plan and PLUS Current/Savings Account (PLUS CASA) Golden Plan for customers’ selection. Customers can either deposit in PLUS CASA or combine investments (UT funds or GIA) with Current/Savings Account in order to get the exclusive gift(s). Depending on the minimum investment/deposit amount, each Golden Plan offers 1 or 2 gift(s).
 
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 vast selection of UT funds to cater to their various risk appetites in order to achieve their financial goals through proper financial planning. In addition, gold or GIA has remained a popular investment tool to hedge against inflation and safeguard wealth. Another option is also available for customers who simply want to save their monies by depositing in PLUS CASA.
 
Just select the Golden Plan 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 plans!
 
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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