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Public Bank Group Achieved Pre-Tax Profit of RM7.10 Billion for 2018 and Declared Second Interim Dividend of 37 Sen
20 February 2019

Public Bank Group Achieved Pre-Tax Profit of RM7.10 Billion for 2018 and Declared Second Interim Dividend of 37 Sen

For Immediate Release

20 February 2019

Public Bank Group Achieved Pre-Tax Profit of RM7.10 Billion for 2018 and Declared Second Interim Dividend of 37 Sen
 
Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank, announced today, “In 2018, despite the challenging operating environment, the Public Bank Group continued to sustain stable profitability and a healthy balance sheet growth. The Group achieved a pre-tax profit of RM7.10 billion in 2018. Net profit attributable to shareholders increased by 2.2% to RM5.59 billion in 2018 from RM5.47 billion achieved in 2017.”
 
Tan Sri Teh said, “2018 was marked by a more moderate economic growth, with increased headwinds on both global and domestic front and banks were faced with a more challenging business climate. Against this backdrop, the Public Bank Group was able to sustain stable profitability due to its continuous efforts to drive its loans and deposits business, coupled with the Group’s strong asset quality and prudent cost management.”
 
“With that, the Group continued to sustain its leading position amongst domestic banks with lowest gross impaired loan ratio of 0.5% and most efficient cost-to-income ratio of 33.0%, leading to net return-on-equity ratio of 14.8% for 2018,” added Tan Sri Teh.
 
With the stable financial performance, Tan Sri Teh is pleased to announce that, “Public Bank’s Board of Directors is declaring a second interim dividend of 37 sen per share. The second interim dividend will be paid on 14 March 2019 based on the dividend entitlement date of 7 March 2019. Together with the first interim dividend of 32 sen per share, the full year dividend for 2018 amounts to 69 sen. This represents a total dividend payout of RM2.7 billion and 47.9% of the Group’s net profit for 2018.”
 
Healthy Growth in Loans and Deposits
 
For 2018, the Public Bank Group achieved a healthy loans growth of 4.2%. The Group’s lending strategy remained focused on consumer financing for the purchase of residential properties and passenger vehicles, as well as extension of credit to small and medium enterprises for purchase of commercial properties and working capital. The Group continued to retain leading market share of 19.8% for residential property financing and 35.2% for commercial property financing.
 
The Public Bank Group’s total customer deposits achieved a total growth of 6.2% to RM339.2 billion in 2018. This deposit growth contributed to the Group’s strong funding position, as reflected in its gross loan to fund and equity ratio of 79.0% as at the end of 2018.
 
Tan Sri Teh said, “The competition for loans and deposits in the banking sector was highly intense in 2018. However, the Public Bank Group continued to uphold prudent credit assessment, so as to preserve its asset quality and protect its returns, while sustaining its market position.”
 
Continued Profitability in Fee-Based Segments
 
Arising from heightened volatility in the global financial market and the more cautious sentiment in the macro environment, growing fee-based business had been a challenge in 2018. However, the Public Bank Group’s unit trust and banking transaction businesses continued to generate positive fee income growth for the Group.
 
Tan Sri Teh highlighted that, “Public Mutual, Public Bank’s wholly-owned subsidiary, remained a major contributor to the Public Bank Group’s non-interest revenue. In 2018, Public Mutual remained the market leader in the domestic private unit trust business, as it continued to capture largest retail market share of 37.2%, with a total of 147 unit trust funds which amounted to a net asset value of RM78.7 billion under its management.”
 
Leading Cost Efficiency
 
In 2018, the Public Bank Group maintained the most efficient cost-to-income ratio among peers at 33.0%, far outpacing the domestic banking system’s cost-to-income ratio of 44.8%.
 
Tan Sri Teh reiterated, “When most banks are encountering higher pressure on earnings and rising costs, the Public Bank Group’s long term commitment in prudent cost discipline has enabled the Group to maintain high productivity and preserve its profitability. The Group’s leading cost efficiency also allows more headroom for the Group to efficiently invest and deploy resources such as financial technology, human capital and banking infrastructure to upscale the Group’s products and services.”
 
Sustaining Superior Asset Quality
 
As at the end of 2018, the Public Bank Group continued to maintain a low gross impaired loans ratio of 0.5%, well below the domestic banking system’s gross impaired loans ratio of 1.5%.
 
Tan Sri Teh added, “Further, the Public Bank Group’s loan loss coverage ratio stood high at 126.0% as at the end of 2018. Including the RM1.8 billion regulatory reserves that the Group had set aside, the Group’s loan loss coverage ratio would be 237.5%. This has provided the Group a strong buffer to weather any uncertainties ahead.”
 
Overseas Operations
 
In 2018, the Public Bank Group’s overseas operations contributed 9.7% to the Group’s overall pre-tax profit, largely contributed by Public Financial Holdings Limited Group in Hong Kong (“PFHL”) and Cambodian Public Bank Plc (“Campu Bank”).
 
Tan Sri Teh added, “Both subsidiaries contributed close to 90% of the pre-tax profit of the Group’s overseas operations. In addition to PFHL and Campu Bank, the Group is also actively expanding its business in Vietnam. With the opening of 5 new branches in 2018, the Group has expanded its branch network to a total of 18 branches in Vietnam as at the end of 2018, with plans to open more branches in 2019. This will further expand the Group’s market reach in order to optimise business opportunities in Vietnam.”
 
Healthy Capital Position
 
As at the end of 2018, the Public Bank Group’s capital position remained at healthy levels. After payment of the second interim dividend, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio will stand at 13.1%, 13.7% and 16.3% respectively.
 
Tan Sri Teh commented, “The Public Bank Group monitors closely its capital position to ensure its capital level complies with regulatory requirement, while sufficient capital resources and buffers are available to support business growth and pursue strategic business opportunities.”
 
Group’s Prospect
 
In 2019, despite the challenging external headwinds posing downside risks to the domestic environment, the Malaysian economy is expected to remain on a steady growth path. Underpinned by the resilience in private sector activity, the overall outlook for the domestic banking sector is likely to remain stable. There will be continued growth opportunities for the domestic banking industry underscored by ongoing demand for affordable housing and the growing small and medium enterprises.
 
Tan Sri Teh concluded, “With the mass market being its key targeted segment, the Public Bank Group continues to expect growth arising from the growing private sector economy. As the Group continues to focus on organic growth strategy, the Group will continue to sharpen its competencies to strengthen its long term growth momentum. Notwithstanding this, in the face of an evolving environment, the Group will always remain vigilant to risks. Reinforcing the values of good governance and integrity will remain the priority of the Group in pursuit of business growth in the way forward.”
 
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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder, Chairman Emeritus, Director and Adviser of Public Bank
 
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Tan Sri Dato’ Sri Dr. Teh Hong Piow Conferred Honorary Doctorate of University by Sunway University
29 January 2019

Tan Sri Dato’ Sri Dr. Teh Hong Piow Conferred Honorary Doctorate of University by Sunway University

For Immediate Release

29 January 2019

Tan Sri Dato’ Sri Dr. Teh Hong Piow Conferred Honorary Doctorate of University by Sunway University
 
Public Bank’s Founder, Chairman Emeritus, Director and Adviser, Tan Sri Dato’ Sri Dr. Teh Hong Piow’s banking acumen continued to be recognised with the conferment of the degree of “Honorary Doctor of the University” by Sunway University.
 
The Honorary Doctorate is in recognition of the outstanding contribution of Tan Sri Dato’ Sri Dr. Teh Hong Piow for overseeing the evolution of Public Bank into a modern and integrated financial institution and for his outstanding contribution to the growth of the banking and finance industry in Malaysia.
 
The award was presented by Tan Sri Dato’ Sri Dr. Jeffrey Cheah, Chancellor of the Sunway University at a ceremony held at the Sunway Resort Hotel & Spa on 28 January 2019, attended by all Public Bank Group board members and 1,200 senior staff.
 
Tan Sri Jeffrey Cheah in his speech said, “Tan Sri Teh’s name was foremost in our mind when we were selecting an individual that personifies the ideals of the honorary doctorate. My hope is that Tan Sri Teh’s achievements, attributes and life journey will be an inspiration to our students”.
 
“Sunway University is very pleased to be associated with Tan Sri Teh, a man of great stature, who built Public Bank from ground up in 1966. Public Bank has not only become a household name, it has held the record of over 50 years of unbroken profitability,” he said.
 
“Tan Sri Teh and I share many similarities. Both of us built our companies from scratch. We both had a dream and a vision, and worked hard to make it a reality. Both of us came from backgrounds that shape our values and who we are today. And one of these values that he holds, of which I regard highly, is Integrity.” he further added.
 
Tan Sri Teh in acknowledging the award said, “I am deeply honoured and touched to be conferred such a high honour and because it is not always that a man of 89 years of age gets to receive awards, let alone be conferred an Honorary Doctorate.”
 
“In banking, I found my true vocation. For me, it was never just a job. It is therefore an uplifting experience for me to be recognised and rewarded for doing the things that I truly enjoy. I guess there may be some truth to the saying that “pleasure in the job puts perfection in the work”. Now as Chairman Emeritus of Public Bank, my passion for banking has not ebbed nor do I find its challenges any less exciting.”
 
“Public Bank has been my life’s work. When I founded it 53 years ago, I envisioned a Bank that would last generations. Indeed, Public Bank has everything it needs to do so - an excellent senior management team, motivated employees, shared values across the organisation and a strong desire to succeed,” he said.
 
Tan Sri Teh further added that his 53 years’ journey in bringing Public Bank to where it is today has been eased by the tireless contribution of a united team of committed, knowledgeable and dedicated employees and took the opportunity to extend his deepest appreciation to the board, management team and staff for their perseverance in upholding the image of the Bank.
 
With this latest award, Tan Sri Teh has amassed 43 personal-to-holder awards of lifetime excellence and achievements and exemplary leadership, which included an honorary PhD from University Malaya in 1989. 

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Tan Sri Jeffrey Cheah, Chancellor of the Sunway University presenting the Degree of “Honorary Doctorate of University” to Tan Sri Teh Hong Piow.

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Tan Sri Teh Hong Piow Accorded The Best of Best Brand Leadership Award 2018 – Overall Championship
20 December 2018

Tan Sri Teh Hong Piow Accorded The Best of Best Brand Leadership Award 2018 – Overall Championship

For Immediate Release

21 December 2018

Tan Sri Teh Hong Piow Accorded The Best of Best Brand Leadership Award 2018 – Overall Championship

Public Bank’s Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow has done it again with the latest award of the “The Best of Best In Brand Leadership Award 2018 – Overall Championship” by the Asia Pacific Brands Foundation.
 
The award was presented by Dr. KKJohan, President, The BrandLaureate at a ceremony held at the Majestic Hotel, Kuala Lumpur on 20 December 2018.
 
This latest personal-to-holder award is in acknowledgement of Tan Sri Teh’s leadership, one that not only brought success to Public Bank but also inspires and motivates many with his vision and wisdom.
 
Dr. KKJohan in his citation said, “As the key driving force of Public Bank, Tan Sri Teh has steered the Bank to become the largest private bank in Malaysia for the past 50 years with your leadership; a leadership that is well grounded on the foundation of strong vision, diligence, innovation, integrity, responsibility and concern.”
 
“In Corporate Malaysia, Tan Sri Teh’s leadership is hard to match and it has become the benchmark of excellence for the industry and for leaders who aspire to become a strong and dynamic Founder and Chairman like your goodself,” he said.
 
“It is amazing that at 88, many would have rested on their laurels. However, Tan Sri Teh, despite his age, still possesses the zest, passion and determination to see the love of his life, Public Bank, continue to grow and prosper. Having been through many stress tests in his 50 over years of banking including the various financial crisis, one can only be in awe of his business acumen,” he further added.
 
Tan Sri Teh in acknowledging the award said, “Being the Founder and Chairman is a coveted position which is more than simply ‘calling the shots’. It means earning respect and inspiring the entire organisation to pursue excellence for the good of the company.”
 
“Excellence requires discomfort. It cannot be an exception but has to be a prevailing attitude. To arrive at excellence, everyone must adopt the dream as a blueprint and consistently prescribe to a set of shared values.”
 
“In Public Bank, traditional values still hold true. When one is a custodian of public funds and is entrusted with the commodity called money, there is no substitute for integrity, trust and good governance. That is why I always subscribe to the principle that we ‘Do the right thing’ even when nobody is looking,” added Tan Sri Teh.
 
Tan Sri Teh dedicated the award to the Management team and all staff of the Public Bank Group for their unwavering commitment to excellence and loyal dedication for continuous success which have played a large part in him winning the award.
 
At the same night, Public Bank was also bestowed with The BrandLaureate CSR BrandLeadership Awards 2018 - Leadership in CSR.
 
With these latest awards, the Bank has received more than 580 corporate awards of excellence and distinction and Tan Sri Teh has amassed 42 personal-to-holder awards of lifetime excellence and achievements and exemplary leadership.

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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 Launches the Red Carpet Banking (RCB) Exclusives and PB RCB Mastercard Premier Debit Cards
07 December 2018

Public Bank Launches the Red Carpet Banking (RCB) Exclusives and PB RCB Mastercard Premier Debit Cards

For Immediate Release

7 December 2018

Public Bank Launches the Red Carpet Banking (RCB) Exclusives and PB RCB Mastercard Premier Debit Cards
 
Public Bank Berhad has on 7 December 2018 launched the Red Carpet Banking (RCB) Exclusives and PB RCB Mastercard Premier Debit Cards which marks an important milestone for the Bank in growing the Bank’s high networth customer base.
 
To-date there are seven (7) RCB Centres located at Wilayah Persekutuan, Johor and Melaka. Moving forward to 2019, Public Bank will expand its RCB services throughout the country to reach broader high networth market and enable more customers to enjoy the RCB benefits and privileges offered by the Bank.
 
The launches of RCB Exclusives and PB RCB Mastercard Premier Debit Cards took place at W Hotel Kuala Lumpur. Present at the launch were Tan Sri Dato’ Sri Tay Ah Lek, Managing Director of Public Bank Berhad, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank Berhad, together with Mr. Perry Ong, Country Manager, Malaysia and Brunei of Mastercard.
 
Tan Sri Dato’ Sri Tay Ah Lek highlighted “The RCB Exclusives offers RCB customers abundance of benefits such as PB RCB Premier Fixed Deposit / Term Deposit–i Campaign, PB RCB Current and Savings Account Campaign, RCB Membership Sign-Up Campaign and RCB Customer Referral Programme.
 
The PB RCB Premier Fixed Deposit / Term Deposit-i Campaign offers FD interest rates / profit rates of up to 4.4% p.a. for 12-month placement while PB RCB CASA Campaign offers 4 types of luxury gift items i.e. Breville Barista Express, Okamizu Food Detoxifier, Grubel Wine Chiller and Lushberry 20” Trolley case for RCB customers who place a prescribed fresh deposit amount into CASA.”
 
In addition, the RCB Membership Sign-Up Campaign offers a selection of sign-up gift exclusively for new RCB members such as Morgan Mini Bar, Panasonic Nanoe Air Purifier, Cuckoo Multi Cooker and Noritake Hampshire Gold Dinner Set. The RCB Customer Referral Programme offers generous rewards to our existing RCB members for every successful referral.
 
In conjunction with the launch of the RCB Exclusives, two (2) new PB RCB Mastercard Premier Debit Cards namely RCB Elite Debit Card and RCB Gold Debit Card, were specially designed and exclusively issued to premier RCB Elite and the RCB Gold members. Both of the PB RCB Mastercard Premium Debit Cards serve as the membership card for the RCB member and allow customers to earn VIP Points on their retail purchases. The VIP Points can be used to redeem items or AirMiles points through PB Redemption Catalogue.
 
Tan Sri Dato’ Sri Tay Ah Lek said, “To mark the occasion, Public Bank will be rewarding our RCB Elite and Gold Debit card holders with three (3) exclusive launch campaigns namely Bonus Activation Points of up to 10,000 VIPS Points, 5% Cash Back on Online and Overseas Transactions and Complimentary Access to Plaza Premium Lounge in Malaysia. These campaigns are aimed not only to reward RCB members, but also to complement their globetrotting lifestyle.”
 
Mr. Perry Ong, Country Manager, Malaysia and Brunei, Mastercard, said, “Mastercard is pleased to partner with Public Bank on the launch of PB RCB Mastercard Premier Debit Cards that will cater to the evolving needs of the country’s growing premium customer segment. These debit cards are better than cash and ATM cards, and will deliver exclusive experiences across dining, luxury accommodations, shopping and entertainment. The new debit cards are also great for travel as they will allow cardholders to make secure and convenient purchases overseas at merchant locations that accept Mastercard.”
 
Public Bank will continue to expand its RCB business throughout the country and focus in enhancing our RCB benefits and privileges to distinguish ourselves from our competitors by offering optimum banking and financial services to our premier customers.
 
To find out more about RCB Exclusive campaigns, customers are welcomed to visit any of our RCB Centres or contact the RCB Centres during normal working hours as follows:
 
  • Kuala Lumpur City Main Office
 03-2176 6717
  • Bukit Damansara
 03-2093 8318
  • SS2
 03-7877 6000
  • Jalan Raja Chulan
 03-2036 8999
  • Mont Kiara
 03-6205 2202
  • Taman Melaka Raya
 06-281 8822
  • Taman Johor Jaya
 07-353 2288

RCB-Launch_E.jpg
From Left: Ms. Chan Chiew Peng, Senior General Manager of Retail Financial Services of Public Bank, Tan Sri Dato’ Sri Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank, Ms. Carene Khoo Geok Kheng, Director, Wealth Management & Transaction Banking of Public Bank.

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From Left: Tan Sri Dato’ Sri Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank, Mr. Perry Ong, Country Manager, Malaysia and Brunei of Mastercard, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank, Ms. Chan Chiew Peng, Senior General Manager of Retail Financial Services of Public Bank.

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Public Bank Launches All-In-One Digital Payment Platform
08 November 2018

Public Bank Launches All-In-One Digital Payment Platform

For Immediate Release

8 November 2018

Public Bank Launches All-In-One Digital Payment Platform
 
Public Bank Berhad (“Public Bank”) is partnering with REVENUE Group Berhad (“REVENUE” or the “Company,” Bloomberg: REVENUE:MK, Reuters: REVE.KL) to launch the all-in-one digital payment terminals.
 
This all-in-one digital payment terminal has been successfully piloted at selected merchant outlets of Public Bank and will be made available beginning 9 November 2018.
 
The first all-in-one digital payment terminal in Malaysia, developed by REVENUE, will simplify the payment acceptance process as it will enable the physical retail merchants to accept both card payments and mobile wallet payments in a single digital payment terminal thus providing convenience to them.
 
The all-in-one digital payment terminal, a fashionable and compact payment device, is powered by the Android operating platform. It comes with a high definition colour touch screen display and a super fast thermal printer that is neatly hidden below so as to maximise the screen usage for customer performing the electronic transactions.
 
The digital payment terminal has a wide range of connectivity, including 3G, 4G, WiFi and Bluetooth networks, enabling the physical retail merchants to process electronic transactions wirelessly and offer their customers a fast and convenient service experience. It also generates electronic transaction reports every business day to enhance operational efficiency.
 
Public Bank’s Managing Director and Chief Executive Officer Tan Sri Dato’ Sri Tay Ah Lek said, “The digital payment terminal is another ongoing initiative in Public Bank’s digital journey. As at end September 2018, Public Bank has more than 60,000 Electronic Data Capture (“EDC”) terminals nationwide. The Bank will continue with its strategy of increasing its merchant base and adding on more new acceptance services. This is also in-line with Bank Negara’s vision to promote cashless society among consumers. The new all-in-one digital payment terminal will enable the Bank to provide added benefits to new and existing merchants.”
 
Public Bank has a diverse and wide range of merchants spanning across a variety of industry sectors, including food and beverages, retail, fashion, electronics, telecommunications and petrol stations.
 
Attending the launch of this all-in-one digital payment terminals are Public Bank’s valued merchant partners such as AA Pharmacy, Alpro Plus Pharmacy, Hong Kong Sasa, L’occitane and Popular Bookstore.
 
Mr. Eddie Ng Chee Siong, the Managing Director and Group Chief Executive Officer of REVENUE said, “With the rapid development of payment technologies in Malaysia, the all-in-one digital payment terminal will enable its customers to manage a diverse range of payment more efficiently.  As Malaysia is moving towards a cashless society, we are committed to develop innovative product and solution that will help our customers grow their businesses in a fast and evolving operating condition. The all-in-one digital payment terminal will help our customers to strengthen their payment and cash management capabilities.”
 
REVENUE’s all-in-one digital payment terminals can handle mobile Quick Response (“QR”) code payment services including Alipay, Boost, Touch ‘n Go, UnionPay QR and WeChat Pay, as well as card payments such as Visa, MasterCard, MyDebit, JCB and UnionPay, making payment management simpler and more efficient for physical retail merchants.
 
Through this digital payment terminal, physical retail merchants will be able to accept payment through multiple channel involving QR codes, near-field communications, chip cards and traditional magnetic stripe cards.
 
The milestone event was launched by Tan Sri Dato’ Sri Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank; Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank; Mr. Eddie Ng; Mr. Brian Ng Shih Chiow, Executive Director and Group Chief Operations Officer of REVENUE and Mr. Dino Ng Shih Fang, Executive Director and Group Chief Technology Officer of REVENUE.
 
About Public Bank Berhad
 
Founded in 1966 by Tan Sri Dato’ Sri Dr. Teh Hong Piow and listed on the Main Board of Bursa Securities Malaysia in 1967, Public Bank Berhad is today the leading financial services provider serving over six million customers in Malaysia. Known for its prudent management and strong corporate governance, Public Bank Berhad continues to be accorded international and domestic awards and accolades.
 
The Group continues to commit to deliver excellent customer service and to be more innovative in providing superior financial products and services to meet increasingly sophisticated customer demand. For more information, visit www.pbebank.com.
 
About REVENUE Group Berhad
 
Established in 2003, with 15 years of operating history in the electronic payments industry in Malaysia, REVENUE has been servicing different customers including banks, non-bank institutions, physical store merchants, online store merchants and e-money payment scheme.
 
REVENUE’s products and services are divided into three segments, namely deployment of EDC terminals, electronic transaction processing and solutions and services related to payments infrastructure.
 
REVENUE offers a wide range of technology-led multi-channel payment solutions to different customers through its flagship platform, revPAY that provides the connectivity between front-end to back-end solutions.
 
Through its revPAY platform, REVENUE offers a single platform which facilitates the acceptance of payment transactions across various payment channels from physical EDC terminals to virtual payments (via e-commerce and mobile commerce channels) to QR Payment, thereby providing cost effective solutions to its customers.
 

MAZ_6726.JPG

From Left: Ms. Chan Chiew Peng, Senior General Manager of Retail Financial Services of Public Bank, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank, Tan Sri Dato’ Sri Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank, Mr. Eddie Ng, Managing Director and Group Chief Executive Officer of REVENUE, Mr. Brian Ng, Executive Director and Group Chief Operating Officer of REVENUE, Mr. Dino Ng, Executive Director and Group Chief Technology Officer of REVENUE during the launching of All-In-One Digital Payment Terminal.


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Comments On The Budget 2019
02 November 2018

Comments On The Budget 2019
Note To Editors:
This press release is issued by
Tan Sri Dato’ Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

2 November 2018

Comments On The Budget 2019
 
We congratulate the Pakatan Harapan Government for its maiden Budget 2019 with the theme ‘A Resurgent Malaysia, A Dynamic Economy, A Prosperous Society’.  Despite the economic and fiscal challenges, Budget 2019 has been crafted with wholesome and inspiring approaches to enhance the well-being of the people as well as to promote the entrepreneurial culture among businesses for Malaysia to return to the status of “Asia Tiger”. Specifically, towards strengthening the fiscal management of the country, we applaud the unprecedented institutional reform initiatives proposed such as the Fiscal Responsibility Act, Government Procurement Act and zero-based budgeting.
 
In promoting housing for all, we welcome the various measure proposed in the Budget 2019.  These measures would benefit the low-income group, first time home buyers, government servants, and also addressing the current overhang situation of residential properties.  We note that the Government is exploring property crowdfunding under the peer-to-peer financing framework as an alternative source of financing for first time home buyers.  In this respect, Public Bank will explore its possible role in participating in this innovative mechanism to continue to support first time home buyers.
 
The Government proposes wide-ranging initiatives to further harness and unleash the potential of our key economic sectors, which include embracing the digital economy, accelerating the adoption of Industry 4.0, strengthening small and medium enterprises, further developing the logistics and transportation sector, boosting tourism and creating value-add on commodities. We commend on these forward-looking measures and the focus on these sectors, which are drivers of future growth of our country.
 
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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank
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Public Bank Group Achieved Pre-Tax Profit of RM5.31 Billion For The First Nine Months 0f 2018
25 October 2018

Public Bank Group Achieved Pre-Tax Profit of RM5.31 Billion For The First Nine Months 0f 2018

For Immediate Release

25 October 2018

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM5.31 BILLION FOR THE FIRST NINE MONTHS OF 2018
 
Chairman’s Review
 
For the first nine months of 2018, the Public Bank Group continued to make business progress despite the challenging operating environment and reported a pre-tax profit of RM5.31 billion, up 2.9% from the corresponding period in 2017. Net profit attributable to shareholders rose by 5.0% to RM4.19 billion from RM3.98 billion recorded in the previous corresponding period.
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “In the environment marked by rising uncertainties and persistent volatility, the Public Bank Group continued to uphold profitability growth, driven largely by its organic growth strategy in its loans and deposits businesses, coupled with its strong and stable asset quality and cost efficiency. These enabled the Group to continue delivering a leading set of financial performance indicators amongst its peers, with its net return on equity standing at 14.7%, cost-to-income ratio at 33.0% and gross impaired loans ratio at 0.5%.”  
 
For the 3rd quarter of 2018, the Group reported a net profit of RM1.38 billion. This reflects a growth of 1.6% from the operational net profit of RM1.36 billion achieved in the previous corresponding quarter, after excluding a one-off capital gain on investment of RM43 million.
 
Loans and Deposits Growth Remained Healthy
 
The Public Bank Group’s market leadership position in financing for the purchase of residential property, commercial property and passenger vehicles continued to drive the Group’s interest income. In the first nine months of 2018, total gross loans rose by an annualised rate of 4.4% to RM314.5 billion. Domestic loans grew at similar pace at an annualised rate of 4.4% to RM291.6 billion.
 
On the funding side, the Public Bank Group continued to uphold resilient growth in deposits. Total customer deposits grew at an annualised rate of 6.5% to RM334.9 billion, while domestic deposits rose by an annualised rate of 6.3% to RM307.0 billion.
 
Tan Sri Teh commented, “As a result of this performance, coupled with the Public Bank Group’s prudent liquidity management, the Group sustained a healthy gross loan to fund and equity ratio of 79.4% as at the end of September 2018.”
 
Contribution from Non-interest Income
 
In the first nine months of 2018, the Public Bank Group’s non-interest income was largely driven by the Group’s unit trust business, banking transactional income and foreign exchange related business.

Tan Sri Teh said, “Public Mutual, the Public Bank Group’s wholly-owned unit trust management subsidiary, remained the largest contributor to the Group’s non-interest income. For the first nine months of 2018, Public Mutual recorded a pre-tax profit of RM509 million, 5.3% higher as compared to the same period last year. As at the end of September 2018, with a total of 146 unit trust funds under management representing net asset value of RM83.4 billion, Public Mutual captured a significant retail market share of 40.6%, sustaining its top ranking in the domestic private unit trust industry.”

Continued Disciplined Cost Management
 
The Public Bank Group’s cost-to-income ratio continued to stand at an efficient level of 33.0% in the first nine months of 2018, as compared to the industry’s cost-to-income ratio of 44.8%.
 
Tan Sri Teh added, “Amid rising cost pressure, the Public Bank Group has been able to sustain the lowest cost-to-income ratio as compared to peers. This testifies to the Group’s ongoing effective measures in driving cost efficiency. This has also enabled greater capacity for the Group to pursue its growth strategy.”
 
Strength in Asset Quality Maintained
 
As at the end of September 2018, the Public Bank Group continued to sustain a low gross impaired loans ratio at 0.5%. Despite its strong asset quality, the Group maintained a high loan loss coverage of 110.2%. Including the regulatory reserves of RM2.0 billion, the loan loss coverage was at 235.8%.

Tan Sri Teh highlighted, “While the Public Bank Group is faced with intense competition in growing its financing portfolio and has always strived for sustained profitability growth, the Group has always emphasised on maintaining strength in its asset quality.”
 
Overseas Operations
 
For the first nine months of 2018, the Public Bank Group’s overseas operations contributed 9.5% of the Group’s overall pre-tax profit. Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc remained the largest contributors to overseas operations profit.
 
Tan Sri Teh added, “For the first nine months of 2018, excluding the effect of foreign exchange, the Group’s overseas operations achieved a pre-tax profit growth of 8.8%. In particular, Cambodian Public Bank achieved a commendable growth of 21.3% in pre-tax profit as compared to the same period last year.”
 
Healthy Capital Position
 
As at the end of September 2018, the Public Bank Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at 12.6%, 13.2% and 15.8% respectively.
 
Tan Sri Teh added, “Maintaining a healthy capital position will continue to be a strategic action for the Public Bank Group to support its pursuit of business growth strategy while meeting regulatory requirement.”
 
Group’s Prospects
 
The macro environment has been increasingly challenging in 2018, with the GDP growth for the first half of the year moderated to 4.9%. As uncertainties linger, economic growth is expected to moderate in the short term going forward. 
 
However, Tan Sri Teh said, “The Malaysian economy will continue to remain on steady growth trajectory. The domestic financial system, as the backbone of the economy, has remained resilient to support growth.”
 
Tan Sri Teh concluded, “Taking cognisance of the challenges in the operating environment, the Public Bank Group will reinforce its prudent and effective balance sheet management to sustain profitability. The Group’s long term practice of cost efficiency, prudent risk management and agility to capture opportunities will continue to lead the Group for sustainable business growth.”
 
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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

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Tan Sri Teh Hong Piow voted as the MAN OF THE YEAR by The BrandLaureate Hall Of Fame
17 October 2018

Tan Sri Teh Hong Piow voted as the MAN OF THE YEAR by The BrandLaureate Hall Of Fame

For Immediate Release

17 October 2018

Tan Sri Teh Hong Piow voted as the MAN OF THE YEAR by The BrandLaureate Hall Of Fame
 
Public Bank’s Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow has added another feather to his already illustrious cap with the latest award ‘The BrandLaureate Hall of Fame – Lifetime Achievement Award 2018 – MAN OF THE YEAR’ by the Asia Pacific Brands Foundation.
 
The award was presented by Dr. KKJohan, President, The Brand Laureate at a ceremony held in Singapore on 16 October 2018.
 
This latest personal-to-holder award is in recognition of Tan Sri Teh’s conviction, determination, passion and resilience in building the PB Brand to a coveted position.
 
Dr. KKJohan in his citation speech said, “As the Founder and Chairman of Public Bank, Tan Sri Teh sets forth his vision with much passion, and commitment.  With his distinctive and dynamic leadership, Tan Sri Teh has steered Public Bank and its portfolio of brands to a desired position as a financial conglomerate.
 
“Your milestones and achievements are a result of your conviction, determination, passion and resilience to build the brand. You have set new trends and best practices, left your footprint in the nation and impacted the lives of many with your leadership and entrepreneurial spirit.  You are truly a source of inspiration to many aspiring ‘Brandpreneurs’ and the pride of your country,” he said.
 
Tan Sri Teh in acknowledging the award said, “To be an entrepreneur is tough. But to be a Brandpreneur – that requires one to have a strong belief in the power of one’s own brand and to inject into it a healthy dose of entrepreneurial spirit to win the hearts, minds and wallets of customers.”
 
“For an organization to be a brand leader, it is not only about the way we think our business.  It is also about the way its people act and stay true to its core values and principles. Oprah Winfrey, once said, “Let excellence be your brand. When you are excellent, you become unforgettable.”
 
“One may say that I am of the ‘old school’ when it comes to how we conduct ourselves. However, I believe core values like integrity, hard work, commitment and a sense of professionalism bespoke one’s personal brand”, added Tan Sri Teh.
 
Tan Sri Teh dedicated this award to “all the people who have worked alongside with me, be it past or present. They are the unsung heroes who have helped me to build a successful bank. It is mentioned that ideas can be stolen but no one can steal execution and passion and that is the hallmark of Public Bank’s success.”
 
At the same ceremony, Public Bank was also the recipient of The BrandLaureate BRAND OF THE YEAR Award 2018 for having fulfilled the selection criterion of Brand Strategy, Brand Culture, Brand Innovation, Brand Loyalty, Brand Communication and Brand Leadership. It is an affirmation of the PB Brand supremacy and excellence.
 
With these two awards received, one for the Bank and one a personal-to-holder to the Founder and Chairman, Public Bank will continue to strive for wider trust from the public to meet the expectations of the stakeholders.
 
As at todate, Public Bank has amassed more than 580 corporate awards of excellence and distinction, while Tan Sri Teh has accumulated 40 personal-to-holder awards of lifetime achievements and exemplary leadership.
 
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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank
 
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Public Bank Group Achieved Pre-Tax Profit of RM3.55Billion For The First Half of 2018 and Declared 32 Sen First Interim Dividend
15 August 2018

Public Bank Group Achieved Pre-Tax Profit of RM3.55Billion For The First Half of 2018 and Declared 32 Sen First Interim Dividend

For Immediate Release

15 August 2018

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM3.55 BILLION FOR THE FIRST HALF OF 2018 AND DECLARED 32 SEN FIRST INTERIM DIVIDEND
 
Chairman’s Review
 
For the first half year ended 30 June 2018, the Public Bank Group recorded pre-tax profit of RM3.55 billion, a growth of 5.5% from the corresponding period in 2017. Net profit attributable to shareholders increased by 8.6% to RM2.80 billion.
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “The Group was able to sustain good business momentum in the first half of 2018. The higher profit for the period was largely driven by growth in its loan and deposit business, with further impetus from a 4.9% growth in non-interest income.”
 
Tan Sri Teh added, “Sustained business strength continued to place the Group in a strong competitive position, with its net return on equity standing at 15.0%. Similarly, the Group’s cost-to-income ratio of 33.1% and gross impaired loans ratio of 0.5% remained the best in the domestic banking industry.”
 
As the Group continued to deliver favourable performance, Tan Sri Teh is pleased to announce, “The Board of Directors has declared a first interim dividend of 32 sen per share, which will result in a total dividend payout of RM1.24 billion. The first interim dividend will be paid on 19 September 2018 based on the dividend entitlement date of 7 September 2018.”
 
Healthy Growth in Loans and Deposits
 
In the first half of 2018, the Public Bank Group’s total gross loans rose by an annualised rate of 4.1% to RM310.7 billion. On the domestic front, total loans grew at an annualised rate of 4.3% to RM288.3 billion. The Group has continued to sustain its leading position in the financing business focusing on residential properties and commercial lending to small and medium enterprises in the domestic banking industry. 
 
On deposit taking, the Public Bank Group’s total customer deposits grew at an annualised rate 6.7%, led by the resilient growth in domestic deposits which increased at an annualised rate of 7.4%.
 
Tan Sri Teh said, “The Group exercises prudent liquidity management and always ensures the stability of its funding sources. As at the end of June 2018, the Group’s gross loan to fund and equity ratio stood at a healthy level of 79.4%.”
 
Sustained Growth in Non-interest Income
 
The non-interest income segment has remained a main source of revenue to the Public Bank Group. In the first half of 2018, non-interest income increased by 4.9%, largely contributed by the Group’s unit trust business as well as stable growth in its banking transactional fee income.
 
Tan Sri Teh added, “In the first half of 2018, Public Mutual, the Public Bank Group’s wholly-owned unit trust management subsidiary, continued to deliver favourable result, with its pre-tax profit growing by 9.0% compared to the corresponding period in 2017. As at end-June 2018, Public Mutual managed a total of 144 unit trust funds, with a total net asset value of RM80.2 billion. Public Mutual’s market presence remained significant, with its market share standing strong at 40.3% in the domestic private unit trust industry.”
 
Prudent Cost Management
 
The Public Bank Group’s cost-to-income ratio remained stable at 33.1% in the first half of 2018, staying well below the banking industry’s average cost-to-income ratio of 44.8%. This reflects the Group’s unwavering strong commitment to high operational efficiency.
 
Tan Sri Teh highlighted, “High efficiency and productivity have long been a cornerstone of the Group’s competitive strength. The Group will remain steadfast in sustaining strong cost discipline, while proactively pursuing growth along its business strategy.”
 
Upholding Strong Asset Quality
 
Tan Sri Teh added, “The Public Bank Group continued to sustain its strong asset quality with its gross impaired loans ratio staying low and stable at 0.5%, which remained the best when compared to the Malaysian banking industry’s gross impaired loans ratio of 1.6%.”
 
Further, the Group’s loan loss coverage stood high at 117.3%. Including the regulatory reserves of RM2.0 billion, the loan loss coverage was at 247.9%.
 
Overseas Operations
 
For the first half of 2018, overseas operations contributed 8.4% to the Public Bank Group’s pre-tax profit, led by businesses in Public Financial Holdings Limited Group in Hong Kong and Cambodia Public Bank Plc.
 
Tan Sri Teh said, “Over the years, the Group has been actively growing and expanding its business in the region through diversifying and enhancing its banking products and services and expansion of branches, particularly in Indo-China. As at the end of June 2018, the Group has built an extensive network of 82 branches in Hong Kong and the People’s Republic of China, and 48 branches in Indo-China. This includes the set-up of 6 new branches in Vietnam in 2017 with another 5 more branches to be opened in 2018.”
 
Healthy Capital Position
 
As at the end of June 2018, the Public Bank Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at 12.7%, 13.4% and 16.3% respectively.
 
Tan Sri Teh added, “The Group has been proactively managing its capital position and will ensure a strong level of capital is maintained at all times to support the Group’s continued business growth.” 
 
Group’s Prospects
 
Global growth is expected to continue although there remain risks emanating from trade protectionism and policy changes in the advanced economies. For the Malaysian economy, fundamentals remain sound despite concerns on the elevated public debt level. Domestic demand has remained the anchor driving economic growth supported by stable labour market and ongoing Government measures. The Malaysian banking sector will stay as a strong support to the domestic economic growth.
 
Tan Sri Teh concluded, “The Public Bank Group will continue to ride on the growing economy to strengthen its banking business along its organic growth strategy. The Group’s resilient fundamentals, consistent financial performance, agility to market changes and strong customer service culture will continue to be the essential qualities in driving the sustainability of the Group’s business, for the interests of all its stakeholders.”
 
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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

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Public Bank Group Achieved 12.6% Net Profit Growth In The First Quarter of 2018
02 May 2018

Public Bank Group Achieved 12.6% Net Profit Growth In The First Quarter of 2018

For Immediate Release

2 May 2018

Public Bank Group Achieved 12.6% Net Profit Growth In The First Quarter of 2018
 
Chairman’s Review
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow announced today that, “The Public Bank Group has set a positive start for the year and achieved 12.6% growth in its net profit attributable to shareholders to RM1.41 billion for the first quarter of 2018, as compared to RM1.25 billion achieved in the previous corresponding period. Pre-tax profit grew by 10.0% to RM1.79 billion over the same period.”
 
The Public Bank Group’s profit growth for the first quarter of 2018 continued to be underpinned by the sustained growth of 4.0% in the Group’s net interest income, complemented by a strong growth of 15.6% in non-interest income. 
 
Tan Sri Teh added, “This resulted in a continued favourable set of financial performance indicators, as reflected in the Group’s net return on equity of 15.2%, gross impaired loans ratio of 0.5%, and cost-to-income ratio of 32.6%, which have remained the best in the domestic banking industry.”
 
Sustaining Momentum in Loans and Deposits
 
The Public Bank Group’s core revenue continued to be driven by its healthy growth in loans and deposits business. In the first quarter of 2018, total gross loans of the Group increased at an annualised rate of 3.0%, with domestic loans growing faster at an annualised rate of 5.0%. The Group continued to capture major domestic market share in the financing of residential properties and commercial lending to small and medium enterprises.
 
In the deposit-taking business, the Group achieved an annualised 8.3% growth in total customer deposits for the first quarter of 2018, while domestic deposits grew at an annualised rate of 10.2%.
 
Tan Sri Teh commented that, “Competition in the financing and deposit market had remained intense. However, the Public Bank Group was able to sustain a favourable market position, which continued to generate revenue contributing to the Group’s profit growth.”
 
“As reflected by its gross loan to fund and equity ratio of 79.9%, the Group’s financing growth has remained well supported by its healthy funding structure. Further, the Group has remained vigilant and placed great emphasis on maintaining a healthy liquidity position, in the face of the challenging operating environment and stringent liquidity regulatory requirement.” said Tan Sri Teh.
 
Sustaining strong momentum in Non-interest Income
 
The Public Bank Group continued to achieve good performance in growing its non-interest income, with a strong growth of 15.6% in the first quarter of 2018 compared to the corresponding period a year ago. This was mainly attributed to the commendable growth of income in the Group’s unit trust business and foreign exchange business, as well as higher investment income coupled with a healthy growth of banking transactional fee income.
 
Tan Sri Teh said, “In the first quarter of 2018, Public Mutual, the Public Bank Group’s wholly-owned unit trust management subsidiary, recorded an impressive pre-tax profit growth of 16.6%. The favourable performance was underpinned by its strong market position, supported by a total number of 142 unit trust funds under its management, with a total net asset value of RM81.9 billion, capturing 41.1% of retail market share in the domestic private unit trust industry.”
 
Prudent Cost Management
 
The Public Bank Group’s ongoing initiatives on enhancing productivity and prudent cost management continued to deliver efficient cost optimisation, with the cost-to-income ratio sustained at 32.6% in the first quarter of 2018. The Group’s cost-to-income ratio remained well below banking industry’s average cost-to-income ratio of 44.8%.
 
Tan Sri Teh highlighted that, “In the face of rising prices and cost of compliance, increasing expenses are inevitable. However, the Public Bank Group’s long-embedded prudent cost management has built buffers and strong foundation to meet the challenges, and enabled the Group to sustain a track record of efficiency and productivity.”
 
Upholding Strong Asset Quality
 
The Public Bank Group recorded a stable gross impaired loans ratio of 0.5% as at the end of March 2018. As compared to the Malaysian banking industry’s gross impaired loans ratio of 1.6%, the Group continued to achieve the best asset quality among domestic peers.
 
In 2018, the Public Bank Group will continue to emphasise on sustaining its superior asset quality. Tan Sri Teh highlighted, “Resilient asset quality has long formed the cornerstone of the Group’s robust fundamentals. Prudent credit risk management has provided stakeholders with long term confidence on the Group’s business sustainability.”
 
With effect from 1 January 2018, the Group has adopted the Malaysian Financial Reporting Standard 9 (“MFRS 9”) which is a more forward-looking based provisioning. Due to the strong asset quality, the Group’s credit cost remained low at 0.09% in the first quarter of 2018. As at the end of March 2018, the Group also continued to maintain a healthy loan loss coverage ratio of 125.2%. Including additional regulatory reserves set aside of RM2.0 billion, the Group’s loan loss coverage ratio would be 261.0%. 
 
Overseas Operations
 
The Public Bank Group’s overseas operations continued to contribute to the Group’s profits.
 
Tan Sri Teh said, “For the first quarter of 2018, overseas operations contributed 8.1% of the Public Bank Group’s pre-tax profit, with Public Financial Holdings Limited Group in Hong Kong and Cambodia Public Bank Plc being the main contributors to the Group’s overseas business profits.” 
 
Healthy Capital Position
 
The Public Bank Group’s capital position remained stable. The Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at 12.2%, 12.8% and 15.8% respectively as at the end of March 2018.
 
Further, the implementation of MFRS 9 on 1 January 2018 did not result in any adverse impact to the capital position of the Group due to the Group’s large regulatory reserves that has been set aside.
 
Tan Sri Teh reiterated, “Strong balance sheet and capital position have always been pillars of public confidence. The Public Bank Group’s capital position has remained healthy and well above regulatory requirement. The Group will continue to exercise prudent capital management to support its growth strategies, while maximising its long term shareholder value.”

Group’s Prospect
 
The Malaysian economy had achieved an impressive GDP growth of 5.9% in 2017. The favourable growth is expected to continue in 2018, given the prospects of better macroeconomic conditions on the global and domestic front. The positive operating environment will bode well for the domestic banking industry with continued growth opportunities.
 
Tan Sri Teh added, “The Malaysian banking sector has long benefited from the stable economic conditions and prudent regulatory environment over the years. Tapping on this stable and conducive environment, the Public Bank Group has been able to stay resilient to serve its customers.”

“In 2018, with domestic demand expected to remain favourable, the resilient growth in the domestic economy will continue to be a strong support to the Group’s banking business. The Group maintains a positive outlook for its core business focusing on financing of residential properties and commercial lending to small and medium enterprises. The Group will stay agile to the advancement in financial technology, and will continue to enhance its digital capability in response to the needs of the market. Further, the Group will continue to strengthen its banking infrastructure, product innovation and service quality as the strategic enablers to drive further business growth.” 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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