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For Immediate Release

6 June 2014

Public Bank ("PBB") Renounceable Rights Issue of New Ordinary Shares of RM1.00 Each in PBB ("PBB Share(s)") ("PBB Rights Issue")

PBB is pleased to announce that the shareholders of PBB had at the Extraordinary General Meeting (“EGM”) held this morning, 6 June 2014, approved the proposed PBB Rights Issue.

The Board of PBB had at a Board meeting held immediately after the EGM, resolved the following:

  • The issue price of the Rights Shares is fixed at RM13.80 per Rights Share, representing a discount of approximately 33% to the theoretical ex-rights price of RM20.64 per PBB Share, calculated based on the five (5)-day volume weighted average market price of PBB Shares up to and including 5 June 2014 of RM21.32 per PBB Share

  • The entitlement basis for the Rights Issue is one (1) Rights Share for every ten (10) existing PBB Shares held by shareholders of PBB at an entitlement date to be determined and announced later

  • The PBB Rights Issue will entail the issuance of 350,212,513 new PBB shares and raise gross proceeds of RM4,832,932,679

The Abridged Prospectus together with the Notice of Provisional Allotment and Rights Subscription Form (collectively referred to as the “Documents”) will be despatched to entitled shareholders of PBB whose addresses in the Record of Depositors maintained by Bursa Malaysia Depository Sdn Bhd is an address in Malaysia, or they have provided an address in Malaysia for purposes of receiving the Documents.

Tan Sri Dato’ Sri Dr. Teh Hong Piow and his related companies, who collectively hold 24.08% shareholdings in PBB, have provided irrevocable undertaking letters to subscribe in full for their respective entitlements for the Rights Shares.

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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 Additional 1% p.a. Bonus Interest Rate Via Public Bank's 'PB Foreign Currency FD Top Up Rates' Campaign

For Immediate Release

3 June 2014

Earn Additional 1% p.a. Bonus Interest Rate Via Public Bank's 'PB Foreign Currency FD Top Up Rates' Campaign

Public Bank is pleased to announce the launch of ‘PB FCY FD Top Up Rates’ Campaign to reward our loyal customers. This Campaign is open to all new and existing Public Bank customers, both individuals and non-individuals, who make new foreign currency fixed deposit (FCY FD) placements with funds converted from Ringgit Malaysia or other foreign currency funds.

This Campaign offers Additional Rate of 1.00% p.a. on top of the Bank’s prevailing FCY FD interest rates for the five (5) popular foreign currencies namely US Dollar (USD), Pound Sterling (GBP), Australian Dollar (AUD), New Zealand Dollar (NZD) and Chinese Renminbi (CNY).

To participate in this Campaign, customers need to make a minimum placement of RM10,000 equivalent of foreign currency amount per receipt for the respective participating foreign currency. Customers may make as many new placements as they wish as there is no cap on the maximum amount to be placed under this Campaign. There are various FCY FD placement tenures i.e. 1-month, 3-month and 6-month for customers to choose from.

The Additional Rate offered under this Campaign is for a limited period only i.e. from 1 June until 30 September 2014. Customers who intend to invest abroad or send their children for overseas education or wish to diversify their funds as another investment alternative for potentially higher returns should seize this golden opportunity to earn the bonus interest.

Public Bank will continue to launch more attractive deposit campaigns to enable customers to enjoy more benefits while saving with the Bank.

To find out more about this Campaign, customers are invited to meet our customer service representatives at any of our branches, log on to Public Bank’s website at www.pbebank.com or call free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.
 
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Public Bank Launched New 'PBe' Internet Banking Website

For Immediate Release

22 May 2014

Public Bank Launched New 'PBe' Internet Banking Website

Public Bank is pleased to announce the launch of Public Bank Berhad’s new internet banking website ‘PBe’ on 15 May 2014.

The totally new website was designed and developed with the objective of showcasing a bright, bold and contemporary website featuring responsive web design for optimal viewing where information displayed will automatically fit across a wide range of computers and mobile devices such as tablets and smartphones. Customers no longer need to pan, resize or scroll the webpages to perform their banking needs or obtain information on banking services, special products and promotions online. Together with the improved navigation and enhanced features, it will be a whole new rewarding experience for the Bank’s internet banking customers.

With the new website, the Bank is confident its customer base and the demand for electronic banking services would continue to see significant growth. This is also in line with Bank Negara Malaysia’s initiatives to promote e-payments and reduce the usage of cheques and cash for payments.

In conjunction with the introduction of the new PBe website, the Bank is pleased to launch the ‘Experience the New PBe and be Rewarded’ Campaign. New and existing customers who perform Interbank GIRO (IBG), Instant Transfer, Bill Payment and Prepaid Top-up with a minimum amount of RM30 will stand to win attractive weekly cash prizes. In addition, for the same type of transactions exceeding RM80, customers stand the chance to win one of the eight Grand Prize of the latest Samsung Galaxy S5 smartphones. The more transactions performed, the better the chances of winning any of the prizes. No SMS pre-registration is necessary nor the need for any catchy slogan. As long as the criteria are met, participation is automatic. The campaign will run from 19 May to 13 July 2014. All eligible winners will be duly notified and the list of winners published in our website.

To learn more about the new PBe website and campaign, please go to www.pbebank.com or call  PBe Customer Support at 03-21795000.

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Public Bank Launched PB Visa Signature Credit Card

For Immediate Release

8 May 2014

Public Bank Launched PB Visa Signature Credit Card

Public Bank Berhad today announced the launch of the Public Bank Visa Signature Credit Card, offering the market with a premium card tailored with a host of perks to fulfill the needs of customers that are pragmatic and status-oriented, aspiring at recognition and differentiation, and seeking higher rewards for their lifestyle.

The PB Visa Signature Credit Card is targeting the mid-affluent segment market with a minimum income level of RM100,000 per annum. This card offers 6% cash rebate on grocery, dining and online transactions while every Ringgit charged on other retail transactions will be rewarded with 1 VIP point which differentiate itself from other cards with only one reward system. Cardmembers can redeem VIP points for products from our Preferred Redemption Rewards Catalogue. As such, cardmembers enjoy both cash rebate and reward point through usage of this card.

Moreover, frequent travelers could have peace of mind while travelling as cardmembers are automatically insured by travel insurance of up to RM1.5 million and also able to enjoy unlimited complimentary access to Malaysia Plaza Premium Lounge with 5 overseas transactions within 30 days before and/or after each access. For frequent travelers, cardmembers can redeem VIP points for Air Miles which allow cardmembers to travel for free or other privileges. Meantime, RM50 Activation Cash Rewards will be credited upon one retail transaction charged within first two months once card approved.

To celebrate the launch, Public Bank Berhad will reward the first 300 qualified cardmembers with RM188 cash bonus added to his/her new Public Bank Visa Signature Credit Card account upon one retail transaction charged on the card within first two months from card approved date.

Present at the launch of PB Visa Signature Credit Card was Dato’ Chang Kat Kiam, Senior Chief Operating Officer of Public Bank Berhad and Mr. Tee Chui Chee, Director of PB Card Services, Public Bank Berhad, together with Mr. Ng Kong Boon, Country Manager, Malaysia, Visa at Menara Public Bank in Kuala Lumpur.

Commenting at the launch, Dato’ Chang, Senior Chief Operating Officer of Public Bank Berhad said, “Customers today are more savvy and sophisticated in their lifestyle choices. We are continually looking to provide our customers with greater rewards and privileges that complement their lifestyle needs.”

“An increasing number of Malaysian consumers are starting to look for exclusive services and lifestyle related offers. Visa understands the needs of this group of consumers and provides them access to the things that matter most to them. The Public Bank Visa Signature Credit card offers cardholders access to a wide range of services and lifestyle privileges with the convenience of Visa payWave contactless technology,” said Mr. Ng Kong Boon, Country Manager, Visa Malaysia.

“Visa payWave allows cardholders to make everyday purchases faster and easier by simply waving their Visa payWave enabled card in front of a Visa payWave reader,” added Mr. Ng.

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 call PB Visa Signature Help Desk at 03-2176 8118. Terms and conditions apply.

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(From left) Mr. Tee Chui Chee, Dato' Chang Kat Kiam and Mr. Ng Kong Boon at the launch of PB Visa Signature Credit Card
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Appointment of Ms. Cheah Kim Ling As An Independent Non-Executive Director of Public Bank

For Immediate Release

29 April 2014

Appointment of Ms. Cheah Kim Ling As An Independent Non-Executive Director of Public Bank

Public Bank has appointed Ms. Cheah Kim Ling as an Independent Non-Executive Director with effect from 29 April 2014. With her appointment, the Public Bank Board will comprise of 9 members of whom 2 are women.
 
Ms. Cheah holds a Bachelor of Accounting Honours from the University of Malaya and is also a Chartered Accountant of the Malaysian Institute of Accountants.
 
She had served Bank Negara Malaysia (BNM) for 32 years whereby she was involved in all aspects of banking regulation from formulation of policies/regulations/guidelines, administration of different legislations governing the commercial banks, merchant banks, finance companies and discount houses, resolution of problem institutions, crisis management in the mid-1980s and the Asian financial crisis in 1997, consumer protection to development of bond markets.
 
Ms. Cheah was also involved in formulating and executing strategies and policies for payment systems, administering the legislations, oversight of the payment systems and payment instruments, development of the payment infrastructure to support developments in the financial system and promoted the migration to electronic payments.
 
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Ms. Cheah Kim Ling
Independent Non-Executive Director of Public Bank

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Public Bank Group Achieved Pre-Tax Profit of RM1.33 Billion For The First Quarter of 2014

For Immediate Release

21 April 2014

Public Bank Group Achieved Pre-Tax Profit of RM1.33 Billion For The First Quarter 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 recorded a pre-tax profit of RM1.33 billion and net profit attributable to shareholders of RM1.02 billion for the first quarter of 2014. Against the profits for the corresponding quarter in the prior year, the Group’s pre-tax profit and net profit for the first quarter of 2014 grew by 4.5% and 5.0% respectively.”

Tan Sri Teh highlighted that, “Despite the protracted external uncertainties and challenging operating environment with expected moderation in the overall domestic demand, the Public Bank Group continued to demonstrate resilience in performance, particularly for its domestic operations which recorded a healthy annualised loan growth of 10.7% and an annualised deposit growth of 14.2%.”

Tan Sri Teh further added that, “We are certainly encouraged that the Public Bank Group continued to be at the forefront amongst its banking peers in Malaysia, achieving the highest net return on equity of 20.5% whilst maintaining the lowest gross impaired loan ratio of 0.7% and cost-to-income ratio of 31.8% in the first quarter of 2014.”

Sustaining Growth Momentum in Loans and Deposits

The Public Bank Group sustained a healthy loan growth momentum at an annualised rate of 9.8% in the first quarter of 2014. Domestic loans grew at a stronger annualised rate of 10.7% over the same period. The Group maintained its market leadership position in its domestic lending for residential mortgages, commercial property financing and passenger vehicles financing with market shares of 19.6%, 33.7% and 26.9% respectively.

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 March 2014, 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 25.2% in the first quarter of 2014.

Tan Sri Teh commented that, “The Public Bank Group’s funding and liquidity position remained supportive of its lending activities, backed by its strong retail deposit franchise with a large domestic 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 a stronger annualised rate of 14.2%.”

The strong domestic deposit growth was mainly backed by the steady inflows of fixed deposits, low cost savings and current accounts, which grew by an annualised rate of 20.5%, 17.1% and 5.0% respectively.

Maintaining Growth in Non-Interest Income

Non-interest income of the Public Bank Group grew by 7.5% in the first quarter of 2014 as compared to the corresponding quarter in 2013, mainly driven by income from higher unit trust business 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”), registered a strong double-digit performance during the quarter under review with a pre-tax profit growth of 17.1% as compared to the corresponding quarter in 2013. As at 31 March 2014, Public Mutual had 105 funds with total net asset value of RM62.6 billion under its management. It remained as the market leader in the private unit trust business, capturing 40.7% of the overall market share as at the end of February 2014, with 59.1% and 53.0% market share in the equity and Islamic unit trust fund sectors respectively. To further drive the Group’s unit trust business, Public Mutual will continue to place strong emphasis on building and nurturing unit trust consultants who are a highly effective distribution channel, to serve its unit trust customer base that has grown to over 3.0 million accounts as at the end of March 2014.” 

Observing 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 31.8% in the first quarter of 2014 as compared to the banking industry’s average ratio of 45.6%.”

“To ensure cost sustainability amid the challenging business landscape, the Public Bank Group will continue to practise prudent cost discipline, deploy adequate resources to review and improve its business processes, and ensure optimum utilization 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 strong growth in its loan portfolio year after year amid 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 0.7% as at the end of March 2014, significantly lower than the Malaysian banking industry’s gross impaired loan ratio of 1.8%,” said Tan Sri Teh.

The strong asset quality is a result of the Group’s consistent approach of carrying out a combination of both preventive and proactive measures in its lending activities, 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 119.1%, which was higher and more prudent than the banking industry's coverage ratio of 104.5%.”

Overseas Operations

For the first quarter of 2014, the Public Bank Group’s overseas operations contributed 6.9% of the Group’s overall pre-tax profit. Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, reported a commendable growth in pre-tax profit of 32.2% to USD9.6 million as compared to the corresponding quarter in 2013, amid the challenging business environment, and remains as one of the top three largest banks in Cambodia.

Ensuring a Healthy Capital Position

The Public Bank Group’s capital position remained stable, with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 8.5%, 10.1% and 13.3% respectively as at the end of March 2014.

Tan Sri Teh emphasised that, “We will continue to assess the Group’s capital requirements to ensure that it is well positioned to support 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

“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 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.

With the expectation that the Malaysian economy will remain on a steady growth path of 4.5% to 5.5% in 2014, backed by domestic demand, albeit at a more moderate pace, the Public Bank Group is expected to maintain its earnings momentum for the rest of 2014,” 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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Public Bank's 48th Annual General Meeting Held On 31 March 2014

For Immediate Release

31 March 2014

Public Bank's 48th Annual General Meeting Held On 31 March 2014

In conjunction with Public Bank’s 48th Annual General Meeting held on 31 March 2014, 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 2013.

Performance Review

Tan Sri Teh said, “The Public Bank Group recorded a pre-tax profit of RM5.31 billion in 2013, representing a growth of 5.2% as compared to 2012. The Group’s net profit attributable to shareholders exceeded the RM4 billion mark for the first time, increasing by 6.2% to RM4.06 billion.”

Tan Sri Teh commented that, “In 2013, the Public Bank Group recorded healthy double digit growth of 11.8% and 11.5% in gross loans and deposits. In particular, domestic loans and deposits grew at a faster rate of 12.0% and 11.6% respectively, leading to improved market shares in the domestic market.”

Tan Sri Teh highlighted, “As a result of the Group’s favourable performance in 2013, a second interim single-tier dividend of 30 sen was paid on 28 February 2014. Together with the first interim single-tier dividend of 22 sen which was paid in August 2013, the total dividend for 2013 was 52 sen.” The total dividend paid for 2013 amounted to RM1.82 billion and represented a total payout of 44.8% of the Group’s net profit for 2013.

Strong Double Digit Growth in Loans and Customer Deposits

The Group continued to focus its lending activities on the retail sector, with loans for the financing of residential properties, passenger vehicles and lending to small and medium enterprises. The Group’s retail loan portfolio collectively accounted for 86% of its total loans.

Tan Sri Teh said, “The Public Bank Group continued to command market leadership in domestic lending for residential mortgages, commercial property financing and passenger vehicle financing with market share of 19.6%, 33.8% and 26.5% respectively as at the end of 2013.”

“The Group’s funding position remained stable and healthy, supported by its strong retail deposit franchise of over five million customers. Domestic customer deposits grew by 11.6%, significantly higher than the domestic banking industry’s deposit growth of 8.5%.” commented Tan Sri Teh.The strong domestic deposit growth was mainly attributed to the steady inflow of fixed deposits and low cost savings and current accounts, which grew by 14.2%, 8.3% and 17.0% respectively.

Excellent Asset Quality

“The Public Bank Group’s gross impaired loans ratio remained low at 0.7% as at the end of 2013 which was significantly lower than the Malaysian banking industry’s gross impaired loans ratio of 1.9%.” commented Tan Sri Teh.

Tan Sri Teh further added, “The Group's loan loss coverage ratio stood at 118.5%, which was higher and more prudent than the banking industry's loan loss coverage ratio of 107.6%.”

International Operations

The Public Bank Group’s pre-tax profits from international operations registered a growth of 8.6% in 2013 and contributed 6.6% to the Group’s pre-tax profits in 2013. Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, reported an improvement in profit contribution by 8.0% to RM117.2 million in 2013.

The Public Bank Group remains committed to expand its presence in the region through organic growth. As at the end of 2013, the Group has 124 overseas branches, with 83 branches in Hong Kong, 3 branches in Shenzhen in the People’s Republic of China, 25 branches in Cambodia, 7 branches in Vietnam, 4 branches in Laos and 2 branches in Sri Lanka.

Sustaining Growth in Fee-based Income

The Public Bank Group continued to focus its efforts to increase fee income from unit trust, bancassurance, foreign-exchange related transactions and transactional banking services.

“The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual, recorded commendable performance with a 14.5% growth in pre-tax profit in 2013. Public Mutual remained the market leader in the private unit trust industry with 104 funds under its management. Total assets under management rose by 14.5% to RM62.5 billion, capturing 41.2% of the overall market share as at the end of 2013, with 59.5% and 53.2% market share in the equity and Islamic unit trust fund sectors respectively.” Tan Sri Teh commented.

The Public Bank Group’s strategic bancassurance partnership continued with AIA Group Ltd (“AIA”) following the acquisition by AIA of the ING’s insurance operations in Malaysia. The bancassurance partnership has proven to be successful as it enables the Group to provide life, health and investment-linked insurance products to its large customer pool in Malaysia and Hong Kong. In 2013, the Group achieved sales of bancassurance products, measured in terms of Annualised Premium Equivalent of RM121.1 million.

Healthy Capital Position

The Public Bank Group’s capital position remained healthy, with common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 8.8%, 10.5% and 13.8% respectively as at the end of 2013.

Tan Sri Teh emphasised that, “Public Bank will continue to proactively manage its capital to ensure an optimum level of capital to support the Group’s business growth whilst maximising its shareholder value and balancing the need for higher capital retention as required by the Basel III standards.”

Superior Returns to Shareholders

The Public Bank Group has consistently delivered superior returns to its shareholders, both over the medium term and long term.

Tan Sri Teh commented, “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 and had not sold any of the Public Bank shares, he would have 135,398 Public Bank shares worth RM2.6 million based on the current share price of Public Bank (Local) shares of RM19.16. In addition, he would have received total gross dividends of RM914,243. This translates into a total value of RM3.5 million representing remarkable compounded annual rate of return of 19.6% for each of the 46 years since 1967.

Over the medium-term of 5 years since the end of 2008, a Public Bank shareholder would have enjoyed a total return of 159.5% or a compounded annual return of 21.0% for each of the last 5 years.”

Outstanding KPIs

Tan Sri Teh added that, “The Group continued to be in the forefront amongst its banking peers in Malaysia, achieving the highest net return on equity of 22.4% while maintaining the lowest gross impaired loans ratio of 0.7% and lowest cost to income ratio of 30.7%.”

Corporate Responsibility

In support of environment sustainability, the Public Bank Group 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.

Other key corporate responsibilities initiatives undertaken include providing continued financial assistance to the IJN Foundation for the set up of a dormitory to house families of needy patients undergoing treatment at Institute Jantung Negara, the continued support of the Universiti Tunku Abdul Rahman in its research studies in the field of banking and finance and contributions focused in the area of healthcare, education, professional development and community activities.

Tan Sri Teh said, “The Public Bank Group will continue to channel funding to assist the development and growth of SMEs and micro enterprises. The Group also actively participated in BNM’s initiatives and financing schemes to promote SME activities. As a result of its strong profitability track record, the Group is a major contributor to the fiscal revenue of the country with tax payments totalling RM4.8 billion for the past 5 years.”

An Award Winning Bank

Tan Sri Teh highlighted that, “In 2013, the Public Bank Group was accorded numerous awards and recognition of excellence by reputable domestic and international publications and independent organisations.” The awards received include:

  • Best Bank in Malaysia by FinanceAsia (15th time)

  • Best Bank in Malaysia by Alpha Southeast Asia (7th time)

  • Domestic Retail Bank of the Year - Malaysia by Asian Banking and Finance (5th time)

  • Best Domestic Bank in Malaysia by The Asset (12th time)

Tan Sri Teh further added, “Public Mutual won 10 awards at The Edge-Lipper Malaysia Fund Awards 2014. This is the 11th consecutive year that Public Mutual has won the most awards at this prestigious annual event.”

Corporate Governance Awards

Tan Sri Teh said, “The Public Bank Group’s pursuit of excellence in good corporate governance continued to be validated by reputable domestic and international publications and independent organisations.”

Public Bank was awarded the Corporate Governance Asia’s 3rd Asian Excellence Recognition Awards 2013 for Best Corporate Social Responsibility and Best Investor Relations by a Malaysian company and the Corporate Governance Asia Recognition Award 2013. Public Bank was also awarded The Asset Platinum Corporate Award 2013 for All-Round Excellence in Financial Performance, Management, Corporate Governance, Social Responsibility, Environmental Responsibility and Investor Relations as well as Minority Shareholder Watchdog Group’s Malaysia-ASEAN Corporate Governance Index 2013 Awards for Top Five Overall Corporate Governance and Industry Excellence - Financials.

Outlook

On strategic directions for the Public Bank Group, Tan Sri Teh commented that, “The Public Bank Group will continue to focus on its core retail banking and financing business and uphold prudent credit policies as well as strong corporate governance to support long term sustainable growth. The Group is expected to maintain its earnings momentum and record satisfactory performance in 2014.”

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



The Public Bank's Board of Directors at the Bank's 48th Annual General Meeting
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'PB Super FD' Gets Even Better - Public Bank Launched 'PB Super FD Rates' Campaign

For Immediate Release

17 February 2014

'PB Super FD' Gets Even Better - Public Bank Launched 'PB Super FD Rates' Campaign

Due to overwhelming response by customers, ‘PB Super FD Rates’ campaign is back to reward our loyal customers. The campaign is open to all new and existing Public Bank individual customers from 28 January to 30 June 2014.

The campaign is suitable for customers who are looking for long-term FD placement with higher step-up interest and yet receive regular monthly interest payment.

The ‘PB Super FD Rates’ campaign offers step-up fixed deposit rates to as high as 8.88% p.a. to individual customers. To participate in the campaign, individual customers are required to place a minimum of RM30,000 fresh funds. From the total placement amount, 80% would be placed under 1-Month PLUS Fixed Deposit (PLUS FD) auto-renewable for 12 consecutive months at a step-up rate whilst 20% of the funds would be deposited into the PLUS Savings Account earning interest at the current prevailing rate. Each individual customer is allowed to place up to a maximum of RM3 million under the campaign.

This campaign also provides customers the flexibility to withdraw the fixed deposit at any time and customers are still entitled to the prevailing 1-month PLUS FD counter rate without any penalty. With this flexibility, customers will save with Public Bank to grow their monies while having a peace of mind in case they require the funds urgently before the end of the 12-month period.

The above campaign is a continuous effort by the Bank to enable customers to enjoy more benefits while saving with the Bank.

To find out more about this Campaign, customers are invited to meet our customer service representatives at any of our branches, log on to Public Bank’s website at www.pbebank.com or call toll-free line at 1-800-22-9999 during normal working hours. Terms and conditions apply.

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Public Bank Group Exceeded The RM4 Billion Mark In Net Profit Attributable To Shareholders For 2013 And Declares Second Interim Dividend Of 30 Sen

For Immediate Release

5 February 2014

Public Bank Group Exceeded The RM4 Billion Mark In Net Profit Attributable To Shareholders For 2013 And Declares Second Interim Dividend Of 30 Sen

Chairman’s Review

The performance of the Public Bank Group continued to strengthen following another favourable set of financial results in 2013. 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 pre-tax profit of RM5.31 billion in 2013, representing a growth of 5.2% as compared to 2012. The Group’s net profit attributable to shareholders grew by 6.2% to RM4.06 billion, exceeding the RM4 billion mark for the first time.”

Tan Sri Teh commented that “We are deeply encouraged that the Group continued to be in the forefront amongst its banking peers in Malaysia, achieving the highest return on equity of 22.4% while maintaining the lowest gross impaired loan ratio of 0.7% and cost to income ratio of 30.7% in 2013.”

Tan Sri Teh added that, “In view of the Group’s favourable performance in 2013, we are pleased to announce that the Board of Directors has declared a second interim single-tier dividend of 30 sen. Together with the first interim single-tier dividend of 22 sen which was paid in August 2013, the total dividend for 2013 is 52 sen.” The total dividend paid and payable for 2013 amounts to RM1.82 billion and represents a total payout of 44.8% of the Group’s net profit for 2013.

Sustaining Strong Double-Digit Growth in Loans and Customer Deposits

Tan Sri Teh commented that, “Despite experiencing prolong external uncertainties, the Malaysian economy remained largely resilient throughout 2013, supported by strong domestic demand that continued to drive growth in the economy. From the perspective of the banking industry, intense competition amongst banks for market share and changes in the regulatory requirements continued to put pressure on pricing of products amid operating in a more regulated business environment.

Against the backdrop, the Public Bank Group was not only able to record healthy double digit growth of 11.8% and 11.5% in loans and deposits respectively, but also sustaining its market share in its domestic core lending and deposit-taking business.”

In particular, the growth for domestic loans of 12.0% outpaced the domestic banking industry’s growth of 10.6%. Lending to the retail banking segment remained the main strategic focus of the Public Bank Group with extension of credit mainly to small and medium enterprises, purchasing of residential properties and passenger vehicles. As at the end of 2013, the Group’s retail loan portfolio collectively accounted for 86% of its total loans.

The Public Bank Group continued to sustain its market leadership position in domestic lending for residential mortgages, commercial property financing and passenger vehicles financing, with market shares for these key lending segments of 19.6%, 33.8% and 26.5% respectively. The Group’s lending to small and medium enterprises also recorded commendable growth of 19.2% in 2013.

The Public Bank Group’s funding position remained stable and healthy, supported by its strong retail deposit franchise of over five million customers. In tandem with its loan growth, domestic customer deposits grew by 11.6%, significantly higher than the domestic banking industry’s deposit growth of 8.5%, leading to an increased market share of 15.6% as at the end of 2013. The strong domestic deposit growth was mainly attributed to the steady inflow of fixed deposits and low cost savings and current accounts, which grew by 14.2%, 8.3% and 17.0% respectively.

Maintaining Growth in Fee-Based Income

In 2013, the net fee and commission income of the Public Bank Group grew by 9.4% as the Group focused its efforts to increase fee income from unit trust, bancassurance, foreign-exchange related transactions and transactional banking services.

 “The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual, recorded commendable performance with a 14.5% growth in pre-tax profit in 2013 as compared to 2012. As at the end of 2013, Public Mutual had 104 funds with total net asset value of RM62.5 billion under its management. Public Mutual remained as the market leader in the private unit trust business, capturing 41.2% of the overall market share as at the end of 2013, with 59.5% and 53.2% market share in the equity and Islamic unit trust fund sectors respectively.”  remarked Tan Sri Teh.

The strategic bancassurance partnership with AIA Group Ltd, following the acquisition by AIA of the ING’s insurance operations in Malaysia has also proven to be successful as it enables the Group to continue to provide life, health and investment-linked insurance products to its large customer pool in Malaysia and Hong Kong. In 2013, the Group achieved sales of bancassurance products, measured in terms of Annualised Premium Equivalent (“APE”) of RM121.1 million.

Observing Prudent Cost Discipline

Tan Sri Teh highlighted that, “The Public Bank Group remained as the most cost-efficient bank in Malaysia with its cost to income ratio of 30.7% in 2013 as compared to the banking industry’s average cost to income ratio of 46.6%.

To ensure cost sustainability amid the challenging operating business environment, the Public Bank Group will continue to observe prudent cost discipline, deploy adequate resources to review and improve its business processes, and ensure optimum utilisation of infrastructure to further enhance efficiency and productivity while ensuring strict compliance with internal operating standards and procedures.”

Preserving Asset Quality

“The Public Bank Group takes pride in being the Malaysian banking group with the lowest impaired loan ratio, despite recording consistent double-digit growth in its loan portfolio year after year and amid such challenging operating business environment. The strong asset quality in the Group’s loans portfolio is demonstrated with the Group recording a low gross impaired loan ratio of 0.7% as at the end of 2013, significantly lower as compared to the Malaysian banking industry’s gross impaired loan ratio of 1.9%. Net credit charges for 2013 also remained low at 0.17%.” commented Tan Sri Teh.

Tan Sri Teh added that, “The Public Bank Group's loan loss coverage ratio stood at 118.5%, which was higher and more prudent than the banking industry's average loan loss coverage ratio of 107.6%.”

The strong asset quality is a result of the Group’s consistency in adopting a combination of both preventive and proactive measures in its lending activities, such as setting strict and prudent credit policies, advocating strong discipline and “know your customer” culture in the credit assessment and approval process, and ensuring effective and efficient recovery processes.

Overseas Operations

For the year ended 2013, the Public Bank Group’s overseas operations contributed 6.6% of the Group’s overall pre-tax profit. Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, reported a commendable growth in pre-tax profit of 8.0% to RM117.2 million in 2013, amid the challenging business environment, and remains as one of the top three largest banks in Cambodia.

Ensuring Healthy Capital Position

The Public Bank Group’s capital position remained healthy, with its common equity Tier I capital ratio, Tier I capital ratio and total capital ratio standing at 8.8%, 10.5% and 13.8% respectively as at the end of 2013.

Tan Sri Teh emphasised that “Public Bank will continue to be proactive in its capital management in order to ensure an optimum level of capital is maintained in support of the Group’s business growth strategies and maximising its shareholder value while balancing the need for higher capital retention as required by the Basel III standards.

As part of its capital management plan, Public Bank, had in 2013, issued a total of RM1.95 billion of Basel III-compliant subordinated medium-term notes which qualify as Tier II capital in support of the Group’s continued business growth.

Outlook

The outlook of the Malaysian economy, in which the Public Bank Group largely operates, continues to be stable and supportive of growth despite uncertainties from the vulnerable external economic conditions, and signs of moderation from certain sectors domestically. Likewise, intense competition amongst financial institutions for market share as well as the need for higher capital conservation due to the requirements of Basel III capital framework, will continue to put pressure on pricing of products and return on equity.

However, the Public Bank Group is well positioned to weather any uncertainties in 2014 and beyond. Tan Sri Teh remarked that, “Our strategies remain unchanged. The Public Bank Group will continue to focus on its key strength in core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance to support long term sustainable growth. 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 deliver continuous revenue growth.

The Group is expected to maintain its earnings momentum and record satisfactory performance in 2014.”
 
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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 Launch BonusLink Campaign

For Immediate Release

17 December 2013

Public Bank Launch BonusLink Campaign

Public Bank is pleased to announce the launch of a BonusLink campaign namely ‘Public Bank Welcome Offer’ (Offer) to reward our loyal customers and encourage savings. This Offer is open to all new and existing customers who still do not have PB SaveLink (SALink) or PB CurrentLink (CALink) account. The Offer period is from 19 November 2013 to 17 February 2014.

This special offer allows customers to collect a guaranteed 200 BonusLink Points (BLP) for SALink or 300 BLP for CALink account open with Public Bank during the offer period. The minimum deposit required is only RM500 for SALink or RM3,000 for CALink respectively.

In addition to the guaranteed BLP from SALink and CALink, customers will be able to join the BonusLink ‘Race For Gold’ contest and be in the running to win a BonusLink Card made of Gold.

Both SALink and CALink are the only Savings and Current accounts in the country that offer BLP. Just save enough with Public Bank and you will be able to redeem exclusive gifts for yourself via BLP.

In addition to this, SALink rewards customers with both interest and BLP. Customers are entitled to value-added BLP on every ringgit they have in their accounts provided they keep a Monthly Average Credit Balance (MACB) of RM500 and above per month. Multi-tiered interests are calculated daily and credited monthly at month-end.

For CALink, customers will be rewarded with 0.06 BLP for every RM 1 of MACB when their MACB is maintained at RM500 and above every month. In addition, customers will be provided with a cheque book and a monthly statement to keep track of their expenditure. CALink is similar to any other current accounts whereby an introducer is required during account opening.

To find out more about the ‘Public Bank Welcome Offer’, customers are invited to meet our customer representatives at any of our branches, log on to Public Bank's website at www.pbebank.com or call at toll-free phone at 1-800-22-9999 during normal working hours. Customers can also log on to www.bonuslink.com.my for more information on BonusLink ‘Race For Gold’ contest. Terms and Conditions apply.

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