A+ A A-
Search From :
Between :
Public Bank Group Recorded Pre-Tax Profit Of RM3.97 Billion For The First Nine Months Of 2013

For Immediate Release

22 October 2013

Public Bank Group Recorded Pre-Tax Profit Of RM3.97 Billion For The First Nine Months Of 2013

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 delivered a favourable set of results in the first nine months of 2013 with pre-tax profit of RM3.97 billion, representing a growth of 5.7% as compared to the corresponding period in 2012. Net profit attributable to shareholders grew by 6.8% over the same period to RM3.04 billion.”

Tan Sri Teh commented that, “Despite the protracted external uncertainties, the Malaysian economy remained resilient in the first nine months of 2013, supported by strong domestic demand that continued to drive growth in the economy. The Public Bank Group recorded a healthy growth in both loans and deposits at an annualised rate of 12.0% and 13.2% respectively in the nine months ended September 2013.” 

Tan Sri Teh added that, “With the continued healthy growth in loans and deposits, coupled with stringent credit control and prudent cost management, the Public Bank Group continued to be in the forefront amongst its banking peers in Malaysia, achieving the highest net return on equity of 22.4%, lowest gross impaired loan ratio of 0.7% as well as lowest cost-to-income ratio of 30.7%.”

Stable Growth Momentum in Loan and Deposit

For the first nine months of 2013, the Public Bank Group recorded a strong annualised loan growth of 12.0%, with domestic loan growth of 12.1%, outpacing the domestic banking industry’s annualised loan growth rate of 9.8%.

Lending to the retail sector remained the main focus of the Public Bank Group with extension of credit mainly to small- and medium-sized enterprises (“SMEs”), financing of residential properties and purchase of passenger vehicles. As at 30 September 2013, the Group’s retail loan portfolio collectively accounted for 86% of its total loans.

Tan Sri Teh commented that, “With the continuous support of our valued customers, the Public Bank Group continued to command market leadership in domestic lending for residential mortgages, commercial property financing and passenger vehicles financing with market shares of 19.6%, 33.8% and 26.4% respectively.” The Group’s lending to SMEs also recorded commendable growth with an annualised growth rate of 19.8% in the first nine months of 2013.

Tan Sri Teh added that, “The Public Bank Group’s funding and liquidity position remained stable and healthy, supported by its strong retail deposit franchise with a large domestic depositor base of over 5 million customers.

In tandem with its loan growth, the Group’s total customer deposits grew at an annualised rate of 13.2% for the first nine months of 2013. The Group’s domestic customer deposits grew at a stronger annualised rate of 13.3%, higher than the domestic banking industry’s annualised growth rate of 8.1%, commanding a market share of 15.1% as at the end of August 2013.”

The strong domestic deposit growth was mainly attributed to the steady inflows of fixed deposits, low cost savings and current accounts, which grew by an annualised rate of 16.2%, 8.7% and 15.2% respectively.

Growth in Fee-based Income

The Public Bank Group continued to grow its fee-based income, targeting fee income from unit trust, bancasurrance, foreign-exchange related transactions and transactional banking services to further improve the Group’s return on equity.

Tan Sri Teh remarked that, “The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual, recorded commendable performance with a 13.7% growth in pre-tax profit in the first nine months of 2013 as compared to the corresponding period in 2012. As at the end of September 2013, Public Mutual had 104 funds with total net asset value of RM59.7 billion under its management. Public Mutual remained as the market leader in the private unit trust business, capturing 40.9% of the overall market share as at the end of September 2013, with 59.1% and 53.8% market share in the equity and Islamic unit trust fund sectors respectively.”

Prudent Cost Management

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

To ensure cost sustainability amid the challenging operating environment, the Public Bank Group will continue to practice prudent cost management and devote significant resources to improve its business processes and ensure optimum utilisation of infrastructure to further enhance efficiency and productivity without compromising on risk-mitigation controls.”

Strong Asset Quality

“The Public Bank Group continues to maintain its strong asset quality with low gross impaired loan ratio of 0.7% as at the end of September 2013, which was significantly lower as compared to the banking industry’s ratio of 2.0%. The Group also maintained a higher and more prudent loan loss coverage ratio of 117.3% as compared to the banking industry's coverage ratio of 98.2%,” said Tan Sri Teh.

The strong asset quality is a result of the Group’s strong emphasis on stringent and prudent credit policies, as well as putting in place efficient and effective credit approval and recovery processes.

Healthy Capital Position

The Public Bank Group remains well-capitalised with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 8.2%, 10.1% and 12.8% respectively as at the end of September 2013.

Tan Sri Teh emphasized that, “Public Bank will continue to assess the Group’s capital requirements to ensure its robustness in supporting the Group’s business growth strategies while maximising its shareholders’ returns.”

On 25 September 2013, the Public Bank Group made a landmark issuance of RM1.0 billion of Basel III-compliant subordinated medium-term notes which qualify as Tier 2 capital for the computation of the regulatory capital in accordance with the Capital Adequacy Framework (Capital Components) issued by Bank Negara Malaysia.

Outlook

“The business environment is expected to remain volatile for the rest of the year as external headwinds and vulnerabilities continue to be prevalent in various geographical parts of the world, including Malaysia.

The outlook of the Malaysian economy, in which the Public Bank Group largely operates, continues to be stable and supportive of growth, underpinned by sound fundamentals and strong domestic demand. The authorities have also introduced various pre-emptive measures to relieve the stresses in the domestic economy as well as to manage household leverage,”  viewed Tan Sri Teh.

Tan Sri Teh remarked that, “Our strategies remain unchanged. The Public Bank Group will continue to focus on its core retail banking and financing business, 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 sustainable revenue growth. With Public Bank’s strong foothold, we remain committed to our business strategies and are well-positioned to weather any uncertainties ahead.

For the remaining months of 2013, the Public Bank Group is expected to maintain its earnings momentum and record satisfactory performance.”

* * * * * * * *

Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank
* * * * * * * *
Public Bank Hands Over 12,000 Trees Worth RM1 Million

For Immediate Release

8 October 2013

Public Bank Hands Over 12,000 Trees Worth RM1 Million

Public Bank officially handed over more than 12,000 well-matured trees worth RM1 Million to the Department of Irrigation and Drainage Wilayah Persekutuan Kuala Lumpur in a ceremony held recently at the Flat Sri Johor Flood Retention Pond, Cheras, Kuala Lumpur.
                               
Public Bank Senior General Manager of Public Affairs Division, En. Razak Dali presented a plaque to symbolise the handing over of the trees to the Director of Department of Irrigation and Drainage Wilayah Persekutuan Kuala Lumpur, Tuan Haji Abu Bakar bin Mohd. Yusof witnessed by Datuk Ir. Zainor Rahim bin Ibrahim, Senior Director of Department of Irrigation and Drainage Malaysia.
                            
In his speech at the ceremony En. Razak Dali said, “As part of the commitment to the corporate philosophy which we have been upholding since 1980s, Public Bank has responded to the challenges and cooperated with the Government in addressing environment issues particularly on environmental changes and global warming.  As a long term partner of the Government in nation building and as a responsible corporate citizen, Public Bank agreed to translate this commitment in a more meaningful way.”

“Hence, in 2007 the management of Public Bank agreed to allocate RM 1 million ringgit to plant nearly 13,000 trees at the Sri Johor Flood Retention Pond in Cheras, Kuala Lumpur with the objective of assisting the city’s eco-system and to reduce the carbon footprint at the surrounding areas which form part of the flood management system in the City of Kuala Lumpur”, he said.

The project has an annual carbon absorption rate of 275,423 kilogram upon the maturity of the planted trees since each single mature tree would have a carbon absorption rate of 22.5 kilogram per annum.  Besides establishing a green lung in the midst of an urban landscape, the trees would also provide the local community with an amenity to enjoy nature with the flora and fauna of the site as the trees mature.

In his response speech Datuk Ir. Zainor Rahim said, “I felt deeply honoured that Public Bank was willing to contribute quite a sizeable amount of funds to beautify the surrounding area of this Flood Retention Pond at Sri Johor Flat. The efforts carried out under the CSR ought to be recognised and supported by the government and local community as it not only brings benefits to the government but it also promotes the love for the environment.”

According to him, “Today’s event is a token of appreciation by the government to Public Bank for their efforts in inculcating and reinforcing the awareness programme to enhance the environment-friendly practice among every individual.  This tree planting project is the best platform for us to strengthen ourselves, our families and society towards conserving the environment. I am confident that this project will become a catalyst towards environment-friendly practice so that the objective to promote the love for the environment in the heart of all individuals can be achieved.”

* * * * * * * *

En. Razak Dali (fourth from right) presenting the hand-over plaque to Datuk Ir. Zainor Rahim at the ceremony witnessed by the officials from the DID WP Kuala Lumpur, Kuala Lumpur City Hall, Ministry of NRE and officers from Public Bank
* * * * * * * *
Public Bank and AIA Bhd. Jointly Launch New Credit Card

For Immediate Release

21 August 2013

Public Bank and AIA Bhd. Jointly Launch New Credit Card

The Card that gives you more savings on your protection plan! 

Public Bank is pleased to announce a winning product as part of their strategic bancassurance partnership with one of Malaysia’s leading insurers, AIA Bhd. with the launch of the new PB-AIA Visa Gold Credit Card that offers a dynamic insurance protection and rewards scheme.

With a staggering 2.6 million AIA policyholders in Malaysia to date, holders of the PB-AIA Visa Gold Credit Card will enjoy exclusive offers including premium rebates on all AIA insurance policies purchased and FREE Automatic Travel Insurance of up to RM300,000, paving the way towards reliable financial security, solid protection and lasting peace of mind for its owner and loved ones.  There is also the appealing Unlimited Cash Rebates for other retail purchases where customers get to benefit throughout the year across various brands.

Those who hold the PB-AIA Visa Gold Credit Card will also enjoy Cash Activation Rewards, Free Guardian Pharmacy Voucher limited to the first 1,000 approved cardmembers and Cash Back on Balance Transfer and FlexiPay Plan, making the card a definite must-have for its rewards and privileges.

On credit protection, the PB-AIA Visa Gold Credit Cardmember is eligible to sign up for the PB Credit Sure Plan.  This policy is a non-participating yearly renewable credit insurance that offers insurance protection on the outstanding balance in respect of the Cardmember’s credit card facility.

To further add on the rewards galore, Public Bank is also running the PB Spend & Win campaign offering 50 Grand Prize and 150 Consolation Prize Winners a chance to go to 2 world-class attractions at Resorts World Sentosa.  In addition, PB Cardmembers also enjoy exclusive cash rebates, free gifts and special discount on dining, fashion apparel, gold and jewelry, spa and healthcare products and other retail purchases.

For full details and information on how to apply, visit your nearest Public Bank branch or log on www.pbebank.com.

********

Public Bank Contributes RM100,000 For the IJN Half-way House

For Immediate Release

30 July 2013

Public Bank Contributes RM100,000 For the IJN Half-way House

Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow presented a cheque of RM100,000 to the Chairperson of IJN Foundation, Toh Puan Dato’ Seri Dr. Hajjah Aishah Ong today at Menara Public Bank. 

The cheque is a donation from Public Bank, being part of its annual grant totaling RM500,000 which began in 2010 for the running and up-keep of the IJN Foundation-Public Bank Dormitory, a half-way house located at IJN Hospital, Kuala Lumpur.  The dormitory houses needy patients’ families who are required to stay over at the hospital temporarily while their children or relatives undergo cardiac surgery or treatment.

At the cheque presentation, Tan Sri Teh said “This donation is part of the CSR initiatives of Public Bank and I hope the financial assistance will further assist IJN Foundation with the operational and management cost in running the dormitory which has proven to be beneficial in providing the much needed accommodation to the families and relatives of the underprivileged and needy heart patients”.

In accepting the cheque, Toh Puan Aishah Ong said, “On behalf of the Board of Trustees of IJN Foundation, I would like to express our greatest appreciation and gratitude to Tan Sri Teh and Public Bank for the generosity and continuous support given to IJN patients.”

She continues, “The IJN Foundation-Public Bank Dormitory has effectively served its purpose in alleviating the stress and sufferings of the relatives of the needy and underprivileged heart patients undergoing surgery or treatment at IJN.

The initiatives taken by Tan Sri Teh and Public Bank to partner with IJN Foundation for the betterment and well-being of the patients especially amongst the underprivileged are lauded and should be exemplary to other corporate organisations in living up its CSR commitment to those who really matters.”

Currently the IJN Foundation-Public Bank Dormitory has 25 beds and users have found it to be very convenient, comfortable and affordable.  Its location within the Institut Jantung Negara Hospital enables family members to give full support and comfort to the heart patients which further promote faster recovery. On the average, the occupancy rate is about 76% and some beds are always kept on standby for emergency admission.

* * * * * * * *

Tan Sri Teh presenting the mock cheque to Toh Puan Aishah Ong, flanked by Public Bank and IJN Foundation Senior Officials
* * * * * * * *
Public Bank Group Achieved Pre-Tax Profit Of RM2.6 Billion For The First Half of 2013 and Declares 22% First Interim Dividend

For Immediate Release

23 July 2013

Public Bank Group Achieved Pre-Tax Profit Of RM2.6 Billion For The First Half of 2013 and Declares 22% First Interim Dividend

Chairman’s Review

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to announce that, “The Public Bank Group achieved yet another set of commendable financial performance in the first half of 2013 with pre-tax profit and net profit growing by 6.2% to RM2.6 billion and 6.4% to RM2.0 billion respectively, as compared to the corresponding period in 2012.

Against the profits for the first quarter of 2013, the Group’s pre-tax profit and net profit for the second quarter of 2013 grew by 5.6% and 5.7% respectively.”

Tan Sri Teh commented that “Despite the challenging external environment, the Malaysian economy demonstrated resilience in the first half of 2013, supported by strong domestic demand. This had in turn, enabled the Group to record a healthy loan growth of 11.8% on an annualised basis to RM209.4 billion as at the end of June 2013.

The Group’s customer deposits also recorded a strong annualised growth of 13.6% to RM240.4 billion as at the end of June 2013. As a result, the Group maintained a stable and healthy loan-to-deposit ratio of 86.4% as at 30 June 2013.”

Tan Sri Teh commented that “The Public Bank Group continues to be at the forefront amongst its Malaysian banking peers with the highest net return on equity of 22.6%. The Group also excels in sustaining its strong asset quality and cost efficiency with its low gross impaired loan ratio of 0.7% and cost-to-income ratio of 31.4% in the first half of 2013.”

“In view of the Public Bank Group’s commendable performance, I am pleased to announce that the Board of Directors has declared a first interim single-tier dividend of 22%, which will result in a total dividend payout of RM770.5 million” said Tan Sri Teh.

Healthy Growth in Loans and Deposits

In the first half of 2013, the Group recorded an annualised loan growth of 11.8%, driven by its strong annualised domestic loan growth of 12.1%, which outpaced the domestic banking industry’s annualised loan growth rate of 9.0%.

The Group’s loan growth was mainly spurred by the lending activities to the retail banking segment, comprising loans to small- and medium-sized enterprises (“SMEs”), loans for the financing of residential properties and purchase of passenger vehicles. As at 30 June 2013, the Group’s retail loan portfolio collectively accounted for 86% of its total loans.

“The Public Bank Group continues to maintain its market leadership position in domestic lending for residential mortgages, commercial property financing and passenger vehicles financing with market shares of 19.4%, 33.8% and 26.3% respectively. This achievement will not be possible without the continuous strong support of our valued customers” said Tan Sri Teh.

Tan Sri Teh added that, “The Public Bank Group’s funding and liquidity position remained stable and healthy, supported by its strong retail deposit franchise with a large domestic depositor base of over 5 million customers.

In line with the healthy loan growth, the Group’s total customer deposits grew at an annualised rate of 13.6%. The Group’s domestic customer deposits grew at an annualised rate of 14.2%, higher than the domestic banking industry’s annualised growth rate of 10.1%, resulting in an improved market share of 15.4% as at the end of May 2013.”

The strong domestic deposit growth was mainly attributed to the steady inflows of fixed deposits, low cost savings and current accounts, which grew by an annualised rate of 20.3%, 10.7% and 15.1% respectively.

Steady Growth in Non-Interest Income

Arising from the Public Bank Group’s initiatives to drive the growth of its non-interest income in order to sustain its high return on equity, the Group’s non-interest income recorded a steady growth of 9.3% in the first half of 2013 as compared to the corresponding period in 2012. This was mainly attributed to higher income from its unit trust business, foreign-exchange related transactions and transactional banking services.

Tan Sri Teh remarked that, “The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the Group’s overall profit with a commendable pre-tax profit growth of 12.7% as compared to the corresponding period in 2012. To date, Public Mutual manages 102 funds with a total net asset value of RM58.9 billion and remains as the market leader in the private unit trust business, capturing 41.0% of the overall market share, with 59.3% and 53.8% 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 its large force of unit trust consultants which is a highly effective distribution channel, to serve its unit trust customer base that has grown to over 2.85 million accounts as at the end of June 2013.”

Effective Cost Management

The Group’s operating expenses in the first half of 2013 increased by 3.7%, mainly attributable to the increase in personnel costs which were in line with the increased headcounts to support business expansion and nurturing of human capital.

Tan Sri Teh commented that, “The Public Bank Group continues to be the most efficiently managed bank in Malaysia with a cost-to-income ratio of 31.4% in the first half of 2013 as compared to the banking industry’s average cost-to-income ratio of 46.6%. This achievement is due to the prudent cost management discipline adopted by the Group that encourages high productivity performance amongst its staff force; and continuous enhancement and review in processes to ensure high efficiency and optimum utilisation of innovative infrastructure. The Group will continue to place strong emphasis in prudent cost management to ensure cost sustainability, particularly in this challenging and competitive operating environment.”

Sustained Strong Asset Quality

“The Public Bank Group continues to sustain its strong asset quality with gross impaired loan ratio of 0.7% as at the end of June 2013, a significantly stronger benchmark as compared to the banking industry’s ratio of 2.0%. Net credit charge remained low and stable at 0.15% in the first half of 2013. The Group also maintained a higher and more prudent loan loss coverage ratio of 123.2% as compared to the banking industry's coverage ratio of 99.2%.” said Tan Sri Teh.

The strong asset quality is a result of the Group consistently carrying out a combination of both preventive and proactive measures in its lending activities, such as establishing strict and prudent credit policies, and putting in place efficient and effective approval and recovery processes.

Stable and Healthy Capital Position

The Public Bank Group’s capital position remained healthy and supportive of its business growth strategies despite the redemption of its RM1.4 billion subordinated notes in May 2013. As at the end of June 2013, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at 8.5%, 10.4% and 12.8% respectively, after provision for first interim dividend.

Tan Sri Teh reiterated 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 more stringent requirements under the Basel III capital regime whilst maximising our shareholders’ return.”

Group’s Prospect

Tan Sri Teh viewed that “The Malaysian economy is expected to remain resilient backed by strong domestic demand despite headwinds from external vulnerabilities. On the banking industry front, we expect the net interest margin compression to persist as competition for both loans and deposits market share remain intense.

In the second half of 2013, the Public Bank Group is expected to maintain its earnings momentum by continuing to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance.”

* * * * * * * *

Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank
* * * * * * * *
Tan Sri Teh Is The BrandLaureate Banker Of The Year 2013

For Immediate Release

9 July 2013

Tan Sri Teh Is The BrandLaureate Banker Of The Year 2013

Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow has been awarded ‘The BrandLaureate Banker of the Year Award 2013’ by The Asia Pacific Brands Foundation (APBF), a world leading branding foundation.

Dr. KK Johan, President of The Asia Pacific Brands Foundation presented the award to Tan Sri Teh at the Bank’s Anniversary held at the MINES International Exhibition & Convention Centre on 6 July 2013.

In his citation Dr. KK Johan said, “Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder and Chairman of Public Bank is indeed most deserving of the title and accolade, The BrandLaureate Banker of the Year Award 2013. Recognised for his foresight, dexterity and business acumen, Tan Sri Teh stands tall as a man in control of his destiny. 

He continued, “In 1966, Tan Sri Teh set his aims up high – to start his own bank.  Since its founding on that historic day, Public Bank has seen many decades of remarkable achievements which were made possible by its Founder’s strategic leadership and his ability to inspire and motivate his staff”.

According to him, the success of Public Bank lies in its brand champion and brand leader, Tan Sri Teh, who lives and breathes the brand. He said, “Tan Sri Teh’s leadership has been notable, not just because he embodied the highest standards of professional expertise, but also because he never shied away from making difficult decisions and taking good cognizance of economic realities. He implemented best banking practices in Public Bank that would enable it to overcome one financial crisis after another. Even in the worst of the global financial downturn, Public Bank continues to stand tall and strong, much to the envy of many local and foreign banks”.

Tan Sri Teh had received four personal awards from Asia Pacific Brands Foundation which include The BrandLaureate Brand Personality Award 2007, The BrandLaureate Premier Icon Leadership Award 2011 and The BrandLaureate Tun Dr. Mahathir Mohamad Man of the Year Award 2011.  Tan Sri Teh was also the recipient of many accolades from various international publications, amongst them were Asia’s Best CEO, Asia’s Banking Grandmaster, Asian Banker Par Excellence and ASEAN Most Astute Banker.

At the same event, Public Bank was also awarded ‘The BrandLaureate Signature Brand Awards 2013’ by the APBF. Managing Director, Tan Sri Dato’ Sri Tay Ah Lek, in his acknowledgement speech said, “Winning these two prestigious awards is indeed an honour that doubles the joy of celebrating the Bank’s 47th Anniversary tonight.  Although Public Bank has been bestowed countless awards over the years, every award continues to fill us with a sense of achievement and pride.  In fact we are inspired to further raise the bar of excellence as each milestone is accomplished.”

He added, “The BrandLaureate Signature Brand Award is a recognition and reaffirmation of Public Bank’s solid stature in Malaysia’s banking industry.”

The BrandLaureate Signature Brand Awards 2012 -2013 are for selected brands that are established and have successfully stamped their mark in their field of expertise and are market leaders. It is higher than the Corporate and Product Branding Awards categories.

Public Bank has been selected as the inaugural recipient of The BrandLaureate Signature Brand Awards 2012-2013 in the category of Finance - Banking. Prior to this award, Public Bank had in the past six consecutive years from 2007 to 2012, being crowned the BrandLaureate Awards for Best Brands in Financial Services – Banking Category. In addition, Public Bank was also the winner of The BrandLaureate – SME Best Brands Awards 2011.

* * * * * * * *

Tan Sri Dato' Sri Dr. Teh Hong Piow, Founder and Chairman, receiving The BrandLaureate Banker of the Year Award 2013 from Dr. KK Johan
* * * * * * * *
Public Bank Launched 'PB Super FD Rates' Campaign

For Immediate Release

17 June 2013

Public Bank Launched 'PB Super FD Rates' Campaign

Following the overwhelming response to the earlier “PB FD Fortune” campaign which ended on 31 March 2013, Public Bank has launched its second fixed deposit (FD) campaign for Year 2013 themed as “PB Super FD Rates”.

The campaign is to cater to individual 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” offer high fixed deposit rates step-up to 6.88% p.a. to individual customers. To participate in the campaign, individual customers are required to place a minimum of RM10,000 new 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.

In addition, customers will also be given the flexibility to withdraw the fixed deposit at any time and still be entitled to the prevailing 1-month PLUS FD counter rate without any penalty. This flexibility will give the customer peace of mind in case they require the funds urgently before the 12-month lock-in period.

The “PB Super FD Rates” campaign period is from 3 June 2013 to 30 September 2013.

Public Bank will continue to launch more attractive deposit campaigns and products to enable the 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 working hours. Terms and conditions apply.

* * * * * * * *

* * * * * * * *

 

Public Bank Provides Opportunities For Its Staff Through The Signing Of An MOU With IBBM

For Immediate Release

22 May 2013

Public Bank Provides Opportunities For Its Staff Through The Signing Of An MOU With IBBM

Public Bank’s signing of a Memorandum of Understanding with Institut Bank-Bank Malaysia (IBBM) to impart training and education through the Chartered Banker Education Pathway for its employees, constitutes a partnership in excellence.

Ms. Koay Seok Khim, General Manager, Knowledge and Learning signed the MOU on behalf of Public Bank, witnessed by En. Sulaiman Manap, Chief Operating Officer, while IBBM was represented by Mr. Tay Kay Luan, Chief Executive Officer.

With this launch, Public Bank once again demonstrates the value that it places on the needs of their human asset by ensuring that their knowledge and skills remain relevant and contemporary.  In her welcome address, Koay said “Our Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow has often said that banking is about people as it is a business for the people and by the people.  Investing in our people is therefore a necessity as they need to continuously enhance their skills to meet the evolving market requirements and increasingly sophisticated customer demands.”

She further added that Tan Sri Teh is a firm believer that learning is the foundation of progress and that good corporate governance and best practices are integral to the health of the financial services industry.

Meanwhile, IBBM’s CEO, Tay Kay Luan commented that it was heartening to note that Public Bank’s strong culture of learning also extends beyond Malaysia.  Sharing his experience on his recent visit to Phnom Penh, Tay indicated that “the Cambodian Public Bank or otherwise known as Campu Bank, did express an interest in IBBM’s qualifications too.  We are looking forward to working with them to see how best to fit their requirements to our suite of products”.

The Malaysian banking industry is fortunate that Bank Negara Malaysia, under the able stewardship of Yang Berbahagia Tan Sri Zeti, has always prioritized talent development as key driver in advancing national competitiveness.  Public Bank is confident that with the Governor's continued support, Malaysia will have a competitive and thriving financial workforce for the country’s transition to being a high income growth economy.

The Chartered Banker qualification, which is recognized as the gold standard for professionals working in the banking sector is aimed at embedding high ethical, professional and technical standards in the workplace. 

The dissemination of knowledge online will also benefit both the Bank and its potential candidates.  Not only is it cost effective but the methodology used is uniquely appropriate to the younger generation of employees who are tech savvy and who value flexibility.

Public Bank therefore lauds IBBM’s endeavour to instill a culture of professionalism and integrity within the banking industry in Malaysia.  Koay further indicated that Public Bank has always been supportive of the many accreditated and certified programmes offered under the umbrella of IBBM; not least the CCP qualification where they have currently a pool of about 900 CCP qualified personnel. 

The Bank is certain that their people will see opportunities in acquiring The Chartered Banker qualification which is backed by The Chartered Institute of Bankers, Scotland.   The Chartered Banker Programme which is relevant, up to date and of high quality will enable banking professionals to really get a good grip on the nuts and bolts of the industry.

* * * * * * * *

MOU signed: Tay (Left) exchanging the MOU documents with Koay (Right), witnessed by En. Sulaiman Manap, Public Bank Chief Operating Officer.
* * * * * * * *
Public Bank And Resona Bank To Collaborate

For Immediate Release

20 May 2013

Public Bank And Resona Bank To Collaborate

Public Bank Berhad and Resona Bank, Ltd. had recently entered into a Memorandum of Understanding (“MOU”) to further strengthen the business collaboration between the two banks in various strategic areas of cooperation on the basis of equality and mutual benefit.

The primary objective of the business collaboration is intended to leverage upon the respective strengths and expertise of Public Bank and Resona Bank and enable the two banks as well as their respective affiliates to establish and promote to their respective customers appropriate banking products and services in Malaysia and Japan, particularly cross border banking transactions and services, which include amongst others, cross border trade settlements, remittance clearance services, credit verification and referrals.

The number of Japanese corporations commencing operations in the ASEAN countries is increasing. The business collaboration between the two banks will strengthen the banking services support to the customers of Resona Bank, particularly in the markets where Public Bank has strong network presence namely Malaysia, Cambodia, Vietnam and Laos. The business relationship between Public Bank and Resona Bank (established through merger of former Asahi Bank and Daiwa Bank) has already commenced since 1967, this MOU further strengthen the business collaboration between both Public Bank and Resona Bank.

Resona Bank, is a wholly-owned subsidiary of Resona Holdings, the fourth-largest banking group in Japan and has strong business presence in the greater Tokyo metropolitan area and the Kansai region, where Japan’s economic activities and population are concentrated. Resona Bank is endeavoring to accomplish wide variety of banking service as a “Metropolitan Area-based Super Regional Bank” in Japan and is also reinforcing its alliances with financial institutions overseas namely Singapore, Thailand, Philippines, Vietnam, India, China, Hong Kong, Taiwan and Korea.  The business collaboration will facilitate Public Bank’s customers to benefit from the wide regional alliances of Resona Bank.  This business collaboration is set to bring about business synergies and value-added service propositions to customers of both Banking Groups.  

Outline of Resona Bank, Ltd.

Name

Resona Bank, Ltd.

Head office address

2-1, Bingomachi 2-chome, Chuo-ku, Osaka 540-8610, Osaka, Japan

Representative Director & President

Mr. Kazuhiro Higashi

Financial condition

(Resona Holdings, Inc.
Consolidated figures)

Financial Figures (as at March 2013)

 

JPY (mil)

MYR (mil)

Total Assets

43,110,629

1,435,155

Deposits

35,384,871

1,177,964

Loans

26,490,121

881,857

Shareholders’ Equity

2,189,304

72,882

Net Income

275,141

9,159

Capital Adequacy Ratio

14.67%

 

 

 

History

Founded in June 1918 as Osaka Nomura Bank Ltd.

Rating

S&P         : A   (long-term)
Moody’s  : A2 (long term)

Number of Branches

339 branches (As at 30 Sept 2012)

Network in Asia

  • Representative office in Singapore, Bangkok, Hong Kong and Shanghai

  • PT Bank Resona Perdania, Indonesia (43.42%). Joint venture bank established in Indonesia for more than 50 years

Characteristics

  • Core business focus : Retail banking business

  • Solid base in Tokyo and Kansai metropolitan areas where economic activities/population are concentrated

  • Resona Holdings Inc. listed on Tokyo Stock Exchange

(1 Malaysian Ringgit = 30.039 yen)

********

Public Bank Group Achieved Pre-Tax Profit Of RM1.3 Billion For The First Quarter Of 2013

For Immediate Release

23 April 2013

Public Bank Group Achieved Pre-Tax Profit Of RM1.3 Billion For The First Quarter Of 2013

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 remains resilient and recorded a pre-tax profit of RM1.3 billion and net profit of RM968.3 million for the first quarter of 2013. Against the profits for the corresponding quarter in the prior year, the Group’s pre-tax profit and net profit growth for the first quarter of 2013 were 3.1% and 4.1% respectively.”

Tan Sri Teh highlighted that “Having started the year with a positive momentum, the Public Bank Group recorded a healthy loan growth in the first quarter of 2013, with gross loans increasing by 11.8% on an annualised basis to RM203.6 billion. The loan growth was largely funded by customer deposits, which also recorded a steady growth of 12.9% on an annualised basis. This resulted in the Group sustaining a stable and healthy loan-to-deposit ratio of 86.9% as at the end of March 2013.”

Tan Sri Teh said that “The Public Bank Group continues to be at the forefront amongst the Malaysian banking groups with the highest net return on equity of 22.2%. The Group is also leading in terms of asset quality and cost efficiency in the banking industry with notably low gross impaired loan ratio of 0.7% and cost-to-income ratio of 31.9% in the first quarter of 2013.”

Steady Growth Momentum in Loans and Deposits

The Public Bank Group sustained its steady loan growth momentum at an annualised rate of 11.8%, with domestic loans growing at a stronger pace of 12.5% over the same period.

The lending activities to the retail banking segment remained the main strategic focus of the Public Bank Group, driven mainly by loans to small- and medium-sized enterprises (“SMEs”), as well as loans for the financing of residential properties and purchase of passenger vehicles. As at the end of March 2013, the Group’s retail loan portfolio collectively accounted for 86% of its total loans.

“I am deeply encouraged by the unwavering support given by our valued customers which had enabled the Public Bank Group to maintain its market leadership position in domestic lending for residential mortgages, commercial property financing and passenger vehicles financing with market shares of 19.2%, 33.8% and 26.4% respectively.”  Tan Sri Teh shared.

For the first quarter of 2013, the Public Bank Group’s domestic loan approvals continued to record stable trend with an increase of 12% compared to the corresponding period in 2012. A total of RM4.9 billion of loans were approved to domestic SMEs, accounting for 33% of the Group’s total domestic loans approved in the first quarter of 2013.

Tan Sri Teh added that, “The Public Bank Group’s funding and liquidity position remained healthy and robust, supported by its strong retail deposit franchise with a large domestic depositor base of over 5 million customers. In tandem with the overall loan growth, the Group’s total customer deposits grew at an annualised rate of 12.9%, with domestic customer deposits growing at a stronger annualised rate of 13.3%.”

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 16.8%, 14.2% and 8.0% respectively.

Growth in Non-Interest Income

Non-interest income of the Public Bank Group grew by 8.7% in the first quarter of 2013 as compared to the corresponding quarter in 2012, mainly driven by income from higher transactional banking services and unit trust business.

Tan Sri Teh said that, “The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to register commendable performance during the quarter under review with a pre-tax profit growth of 9.8% compared to the corresponding quarter in 2012. With a total net asset value of RM55.5 billion and 101 funds under its management, Public Mutual remained as the market leader in the private unit trust business, capturing 40.5% of the overall market share as at the end of February 2013, with 59.7% and 53.5% 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 its large force of unit trust consultants which is a highly effective distribution channel, to serve its unit trust customer base that has grown to over 2.8 million accounts as at the end of March 2013.” 

Prudent Cost Management

The increase in operating expenses in the first quarter of 2013 was mainly attributed to the increase in personnel costs which were in line with the investment in human resources and larger headcount to support business expansion.

Tan Sri Teh commented that, “Being appreciative of the importance of ensuring cost efficiency in enhancing shareholders’ return, the Public Bank Group adopted prudent cost management discipline by actively promoting higher levels of productivity in its resources, enhancing efficiency in processes and ensuring optimum utilisation of infrastructures. This has resulted in the Group being able to maintain an efficient cost-to-income ratio of 31.9% as compared to the banking industry’s average cost-to-income ratio of 46.6%.”

Uphold Asset Quality

“Despite the consistent double-digit growth in its loan portfolio year after year, the Public Bank Group continued to sustain its strong asset quality with gross impaired loan ratio of 0.7% as at the end of March 2013, significantly lower than the Malaysian banking industry’s gross impaired loan ratio of 2.0%.” said Tan Sri Teh.

The strong asset quality is a result of the Group consistently carrying out a combination of both preventive and proactive measures in its lending activities, such as establishing strict and prudent credit policies, and putting in place efficient and effective approval and recovery processes.

Tan Sri Teh added that, “The Public Bank Group's loan loss coverage ratio stood at 123.9%, which was higher and more prudent than the banking industry's coverage ratio of 98.5%.”

Stable and Healthy Capital Position

The Public Bank Group’s capital position remained healthy, with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 8.2%, 10.1% and 13.0% respectively as at the end of March 2013.

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.

Along with the expectation that the Malaysian economy will remain on a steady growth path of 5.0% to 6.0% in 2013, anchored by the continued resilience of domestic demand, and supported by gradual improvement externally, the Public Bank Group is expected to maintain its earnings momentum for the rest of 2013.” remarked Tan Sri Teh.
* * * * * * * *

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