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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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For Immediate Release

24 November 2014

Public Bank And Bank Central Asia To Collaborate

Public Bank Berhad and PT Bank Central Asia, Tbk, Indonesia took a step forward today to further strengthen the business collaboration between the two banks in various strategic areas of cooperation by entering into a non-exclusive Memorandum of Understanding on Business Collaboration (“MOU”).
 
The MOU between Public Bank and Bank Central Asia was officially inked by Dato’ Chang Kat Kiam, Senior Chief Operating Officer of Public Bank, and Mrs. Dhalia M. Ariotedjo, Director of Bank Central Asia. A delegation from Bank Central Asia, Jakarta together with selected Senior Management Staff of Public Bank witness this signing ceremony.
 
The primary objective of the business collaboration is to leverage upon the respective strengths expertise and networks of Public Bank and Bank Central Asia in order to enable the two banks and their respective affiliates to build deeper business relationship and promote to their respective customers appropriate banking products and services in Malaysia and Indonesia, particularly cross border banking transactions and services, which include amongst others, cross border trade settlements, remittance clearance services and referrals and offshore banking services.
 
With the advent of the ASEAN Economic Community (AEC), ASEAN countries are expected to experience greater mobility of goods, services, investments and people.  Banking services are envisaged to be pivotal in support of the ASEAN blueprint.  The business collaboration between Public Bank and Bank Central Asia will strengthen the banking services support to the existing and new customers of both banks, not just in Malaysia and Indonesia, but also in countries and locations where both banks have presence of operations.
 
About Public Bank


Public Bank Group is the third largest banking group in Malaysia by asset size with total assets of RM331.0 billion as at the end of September 2014. It is listed on the Main Board of the Bursa Malaysia Securities with a market capitalisation of over RM70 billion.  Public Bank Group provides comprehensive range of financial products and services covering, amongst others, personal and commercial banking; Islamic banking; investment banking; share broking; sales and management of unit trust funds; distribution of bancassurance, family takaful and general insurance products.  The Group’s primary business focus is retail consumer banking business and it has leading market shares in Malaysia in financing for residential properties, commercial properties and passenger vehicles, as well as in sales and management of unit trust funds. To-date, Public Bank Group has an extensive network of 259 banking branches across Malaysia, with more than 120 branches spanning Hong Kong / China, Cambodia, Vietnam, Laos and Sri Lanka.
 
About Bank Central Asia


Bank Central Asia, is an Indonesia-based financial institution. The Bank offers individual and business products and services. The Bank's individual products and services consist of savings accounts, electronic banking, credit cards, consumer credit products, bancassurance, investment products, remittance, collection and safe deposit facilities. The Bank's business products and services consist of savings accounts, BCA trade, working capital loans, investment loans and bank guarantees for small and medium-sized enterprises, as well as for corporate customers. For the past decades, BCA has built its strength as the leading transactional bank in Indonesia with 1074 branches serving more than 13 million customers.

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Earn More Interest / Profit with ‘PB FD Xtra’ Campaign

For Immediate Release

11 November 2014

Earn More Interest / Profit with ‘PB FD Xtra’ Campaign

Public Bank Berhad (PBB) and Public Islamic Bank Berhad (PIBB) have revised the promotional interest / profit rates for the PB FD Xtra Campaign to up to 4.28% p.a. effective 27 October 2014. The Campaign period has also been further extended to 28 February 2015 from 31 December 2014.
 
This Campaign is open to all new and existing individual and non-individual customers of PBB / PIBB. Customers are required to place 6-month fixed deposit placement into PLUS Fixed Deposit [PLUS FD] or Term Deposit-i [TD-i] during the Campaign period in order to enjoy higher interest / profit rates. PLUS FD is a Conventional Fixed Deposit account whilst TD-i is an Islamic Term Deposit which provide customers the flexibility to manage their funds for short or long-term placement.
 
Customers will enjoy a promotional interest / profit rate of 3.83% p.a. for the first 6 months. Should they rollover their placements for another 6 months, they will enjoy higher interest / profit rate of 4.28% p.a.
 
Individual customers only need to deposit a minimum of RM20,000 to participate in the Campaign, subject to a maximum placement of RM10 Million. A higher minimum and maximum placement amount of RM50,000 and RM20 Million respectively is applicable to the non-individual 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 PBB / PIBB website at www.pbebank.com / www.publicislamicbank.com.my or call free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.
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PB FD Rush Is Back With Higher Rate

For Immediate Release

27 October 2014

PB FD Rush Is Back With Higher Rate

Due to the overwhelming response from customers, PB FD Rush Campaign is back to reward our loyal customers with higher promotional rate. The Campaign was first launched by Public Bank Berhad (PBB) in March 2014. This Campaign is now relaunched jointly by PBB and Public Islamic Bank Berhad (PIBB) and will run for a period of 2 months from 1 October to 30 November 2014. It is open to all new and existing individual and non-individual customers of PBB and PIBB.
 
Campaign participation is hassle free. Customers will enjoy a promotional interest/profit rate of 3.68% p.a. by placing their monies with the Bank for a short period of 4 months.
 
PLUS Fixed Deposit (PLUS FD) and Term Deposit-i (TD-i) are offered as eligible products under this Campaign. PLUS FD is a Conventional Fixed Deposit account whilst TD-i is an Islamic Term Deposit which provides customers the flexibility to manage their funds for short or long-term placement.
 
Both individual and non-individual customers just need to place a minimum of RM50,000 to enjoy the promotional rate under this Campaign, subject to a maximum placement of RM5 Million for individual and RM20 Million for non-individual.
 
“PB FD Rush” Campaign is part of the Bank’s initiatives to encourage savings by rewarding customers when they increase their savings during the Campaign Period. We are constantly developing various campaigns to show our gratitude to customers for their continued trust and loyal patronage.
 
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 / PIBB website at www.pbebank.com / www.publicislamicbank.com.my or call free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.
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Public Bank Group Recorded A Favourable Third Quarter Performance, Leading To A Pre-Tax Profit of RM4.25 Billion For The First Nine Months of 2014

For Immediate Release

23 October 2014

Public Bank Group Recorded A Favourable Third Quarter Performance, Leading To A Pre-Tax Profit of RM4.25 Billion For The First Nine Months of 2014

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 registered a favourable performance in the third quarter of 2014, achieving a pre-tax profit of RM1.55 billion that translated to a 14.3% growth as compared to the corresponding quarter in 2013. Net profit attributable to shareholders also recorded an increase of 13.8% to RM1.19 billion over the same period.

On year-on-year basis, the Public Bank Group’s pre-tax profit grew by 7.0% to RM4.25 billion for the nine-month period ended September 2014. The Group’s net profit attributable to shareholders increased by 7.4% to RM3.26 billion over the same period.

The favourable achievements in the third quarter 2014 performance of the Public Bank Group were mainly due to the increase in operating revenue as a result of net interest income growth and steady non-interest income growth, coupled with stable credit costs. The increase in net interest income in the current quarter was attributable to the commendable loan and deposit growth as well as the positive impact arising from the hike in the overnight policy rate and the recently completed rights issue."

Tan Sri Teh commented that, “While the Malaysian economy was relatively stable and resilient for the first nine months of 2014, the growth sentiment has been moderating especially towards the third quarter of 2014. Despite facing the challenging operating environment, the Public Bank Group continued to perform well, particularly in its domestic commercial banking operations with a commendable double-digit annualised loan growth of 10.2%, outpacing the banking system’s annualised loan growth of 6.9%. The Group’s annualised customer deposits growth in respect of its domestic commercial banking operations was also strong at 11.0%, significantly surpassing the banking system’s annualised deposit growth of 4.0%. The positive results reinforce the Group’s steadfast commitment in its pursuit of organic growth strategy in the core retail banking business."

Tan Sri Teh further added that, “The Public Bank Group continues to deliver the best in return on equity, cost efficiency and asset quality when compared to its Malaysian banking peers. For the nine-month period ended September 2014, the Group recorded an efficient cost-to-income ratio of 30.7% and maintained its low gross impaired loans ratio of 0.7%. The Group also continued to record the highest net return on equity of 20.0%.”

Commendable Growth in Loans and Deposits
 
The Public Bank Group maintained commendable loan growth with an annualised growth rate of 9.8% in the first nine months of 2014 despite a subdued operating environment, supported by its commendable annualised domestic commercial banking loan growth of 10.2%.

The Public Bank Group’s loan growth was mainly attributed to the lending growth in its retail banking segment, comprising extension of financing for the purchase of residential properties, commercial properties and passenger vehicles. As at 30 September 2014, the Group’s retail loan portfolio collectively accounted for 87% of its total loans.

“Despite operating in a moderating business environment thus far this year, where competition for market share remained intense, the Public Bank Group has continued to sustain its market leadership position in the retail banking segment. Lending to small and medium enterprises had been particularly strong, recording an annualised growth of 21% in the first nine months of 2014,” remarked Tan Sri Teh.

Tan Sri Teh added that, “On the funding side, the Public Bank Group’s total customer deposits grew at an annualised rate of 9.3%, supported mainly from the Group’s strong growth in the domestic commercial banking customer deposits of 11.0%, which was more than 2.7 times of the domestic banking industry’s annualised growth of 4.0%.”

Steady Growth in Non-Interest Income

The Public Bank Group’s non-interest income increased steadily by 7.8% for the period ended September 2014 as compared to the corresponding period in 2013. This was mainly attributed to higher income from its unit trust business, investment income and fee income from banking operations.

The Public Bank Group will continue to focus on implementing various initiatives aimed at further improving the non-interest income contribution to the Group in order to sustain its high return on equity.

Tan Sri Teh commented that, “The Public Bank Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute favourably to the Group’s overall profit by registering a consistent double-digit pre-tax profit growth of 16.3% as compared to the corresponding period in 2013. As at the end of September 2014, Public Mutual manages 107 funds with a total net asset value of RM62.3 billion and remains as the market leader with an overall market share of 40% in the private unit trusts business. Public Mutual also commands market leader position in the equity and Islamic unit trust fund sectors with 58% and 52% market share respectively as at the end of August 2014.”

Sustainable Cost

The Public Bank Group’s operating expenses for the period ended September 2014 increased by 5.2%, 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 efficiently managed bank in Malaysia with a low cost-to-income ratio of 30.7% as compared to the banking industry’s average cost-to-income ratio of 45.6%.

The Group will continue to emphasise on high productivity and efficiency in ensuring cost sustainability without compromising on compliance and service quality.”

Strong Asset Quality

“Relative to the banking industry’s gross impaired loans ratio of 1.7%, the Public Bank Group recorded a significantly lower impaired loans ratio of 0.7% as at the end of September 2014. The Group also maintained a higher and more prudent loan loss coverage ratio of 117.1% as compared to the banking industry's coverage ratio of 104.8%.

To ensure its competitive edge is well preserved, the Public Bank Group will continue to adopt a prudent approach in its credit risk management. This will be achieved through 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 7.5% of the Group’s overall pre-tax profit for the nine-month period ended September 2014.

Tan Sri Teh commented that “Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, registered a strong double-digit pre-tax profit growth of 48.7% to USD40.0 million as compared to the corresponding period in 2013 and is amongst the top three largest banks in Cambodia.”

In July 2014, Public Bank has entered into a conditional agreement with its joint venture partner to acquire the remaining 50% equity interest in VID Public Bank (VPB) not held by the Group. Upon completion of the exercise, VPB will become a wholly-owned subsidiary of the Group.

Healthy Capital Position

The Bank has successfully completed the renounceable rights issue exercise in August 2014 which raised RM4.8 billion equity capital. The rights issue exercise is 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 prepare for the forthcoming regulatory requirements under the Basel III framework.

With the completion of the rights issue exercise, the Public Bank Group’s capital position has been further enhanced with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 10.4%, 11.9% and 15.8% respectively as at the end of September 2014, and became the second highest capitalised banking group in Malaysia in terms of Tier 1 capital ratio.

Group’s Prospect

“Our strategies for the Public Bank Group remain unchanged. 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 remain on a steady growth path, supported by moderating domestic demand but improving exports. 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 facing these challenges,  the Public Bank Group is expected to maintain its earnings momentum for the rest of 2014,” 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 More Interest / Profit With ‘PB FD Xtra’ Campaign

For Immediate Release

20 October 2014

Earn More Interest / Profit With ‘PB FD Xtra’ Campaign

Public Bank Berhad (PBB) and Public Islamic Bank Berhad (PIBB) are delighted to jointly launch a new campaign, ‘PB FD Xtra’ Campaign to better reward our customers. This Campaign offers higher promotional interest / profit rates of up to 4.08% p.a. and will run for 4 months from 1 September to 31 December 2014. It is open to all new and existing individual and non-individual customers of PBB / PIBB.
 
Customers are required to place 6-month fixed deposit placement into PLUS Fixed Deposit [PLUS FD] or Term Deposit-i [TD-i] during the Campaign period in order to enjoy higher interest / profit rates. PLUS FD is a Conventional Fixed Deposit account whilst TD-i is an Islamic Term Deposit which provide customers the flexibility to manage their funds for short or long-term placement.
 
Customers will enjoy a promotional interest / profit rate of 3.68% p.a. for the first 6 months. Should they rollover their placements for another 6 months, they will enjoy higher interest / profit rate of 4.08% p.a.
 
Individual customers only need to deposit a minimum of RM20,000 to participate in the Campaign, subject to a maximum placement of RM10 Million. A higher minimum and maximum placement amount of RM50,000 and RM20 Million respectively is applicable to the non-individual customers.
 
Due to customers’ overwhelming response to our FD campaigns, ‘PB FD Xtra’ Campaign is our continuous effort to show our gratitude to our valued customers for their trust in depositing with us. We will continue to launch more exciting campaigns as our way of thanking and rewarding 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 PBB / PIBB website at www.pbebank.com / www.publicislamicbank.com.my 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 2015

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

10 October 2014

Comments On The Budget 2015
 
Public Bank would like to applaud the Honourable Prime Minister and Minister of Finance for his basis of formulating the Budget 2015, balancing between the requirements of the capital economy and people’s economy.  Budget 2015 is pragmatic and all-encompassing as reflected by the various significant strategies and initiatives to further strengthen the fundamentals for sustaining longer-term economic growth, reinforcing a firm stance on fiscal reforms over time, optimising the allocation of Government’s resources, and further enhancing the various aspects of the well-being of the rakyat.
 
We support the various measures in the Budget 2015 to accelerate Malaysia’s economic growth through domestic and foreign investments, and in particular in enhancing the contribution of the services sector to the economy.  These comprehensive measures are well formulated to provide impetus and linkages within the economy ecosystem to achieve higher impact towards a sustainable economic growth path.  We further noted the favourable increase in the development expenditure of about 15% in the Budget 2015 as compared to the year before.  
 
We further welcome the refinements made to the implementation of the Goods and Services Tax (GST) in 2015, as well as the Government’s commitment to implement further subsidy rationalisation.  The refinements, which include the wider scope of items not to be subjected to GST, and the restructuring and the reduction in the individual income tax rates should reduce the impact of the GST implementation on the rakyat at large.    
 
We wish to congratulate the Honourable Prime Minister and Minister of Finance for having adopted a consistent approach with continuing theme in all his six budgets since assuming leadership of the administration, in transforming Malaysia towards achieving a high-income advanced economy by 2020.  
 
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