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Public Bank Group Achieved Pre-Tax Profit Of RM5.31 Billion for the First Nine Months of 2019

For Immediate Release

7 November 2019

Public Bank Group Achieved Pre-Tax Profit of RM5.31 Billion for the First Nine Months of 2019

For the first nine months of 2019, the Public Bank Group’s profit performance remained stable, on the back of a 2.3% growth in total revenue to RM16.78 billion. For the 9-month reporting period, the Group recorded a pre-tax profit of RM5.31 billion and net profit attributable to shareholders of RM4.11 billion, compared to RM5.31 billion and RM4.19 billion respectively in the corresponding period in 2018.
 
On a quarter-to-quarter comparison, the Group’s net profit attributable to shareholders of RM1.36 billion recorded in the 3rd quarter of 2019, represented an increase of 2.2% as compared to the net profit attributable to shareholders of RM1.33 billion achieved in the 2nd quarter of 2019.
 
Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank said, “Recent developments in the operating environment posed further challenges to the banking industry. While macro headwinds remain, the reduction in Overnight Policy Rate (“OPR”) in May 2019 had also resulted in the decline in net interest margins for the banking sector, which affected the profit for the first nine months ended September 2019.”
 
Tan Sri Teh further added, “Despite these concerns, the Public Bank Group was able to sustain stable profit performance, mainly on account of the stable interest income from its growing financing and deposit business. The Group’s profitability was also complemented by its non-interest income which grew by 5.8% in the first nine months of the year. During the financial period, the Group also retained its competitive strength, as reflected in its efficient cost-to-income ratio of 34.3% and low gross impaired loans ratio of 0.5%. As a result, the Group sustained a resilient net return on equity of 13.3%.”
 
Sustained Growth in Loans and Deposits
 
In the first nine months of 2019, the Public Bank Group’s total loans rose by an annualised rate of 4.2% to RM327.2 billion. On the domestic front, the Group’s total loans grew by an annualised rate of 4.4%, higher than the banking system’s annualised loan growth of 3.3%. This loan growth is commendable when compared to the industry’s growth and continued to reinforce the Group’s strong market position in lending for residential properties, financing to the small and medium enterprises, as well as hire purchase financing.
 
On deposit-taking, the Public Bank Group achieved an annualised growth rate of 3.2% to RM347.2 billion in total deposits. Domestic deposits rose by an annualised rate of 3.4%, which was also higher as compared to the domestic banking system’s annualised deposit growth of 2.0%.
 
Tan Sri Teh added, “The Group has adopted a strategy to optimise its funding position and balance between deposit growth and cost of funding, whilst ensuring sufficient liquidity buffer. As at the end of September 2019, the Group’s funding position remained healthy with its gross loan to fund and equity ratio standing at 79.8%.”
 
Continued Growth in Non-interest Income
 
In the first nine months of 2019, the Public Bank Group achieved 5.8% growth in non-interest income, led by higher investment income and banking fee income.
 
Tan Sri Teh highlighted, “Public Mutual, the Public Bank Group’s wholly-owned unit trust management subsidiary, remained the main contributor to the Group’s total non-interest income. In the first nine months of 2019, Public Mutual managed a total of 152 unit trust funds representing net asset value of RM84.2 billion. Public Mutual also sustained its market leader position in the domestic private unit trust industry, with a retail market share of 35.3%.”
 
Prudent Cost Management
 
In the first nine months of 2019, the Public Bank Group’s cost-to-income ratio stood at 34.3%, significantly more efficient than the domestic banking industry’s average cost-to-income ratio of 44.6%.
 
Tan Sri Teh highlighted, “Effective cost management has long been a strong competitive edge for the Public Bank Group as it enables the Group to pursue continued business growth despite the rising cost pressure. With this strong buffer, the Group is able to continue investing in talent and technology to further enhance its productivity and strengthen its business sustainability.”
 
Upholding Strong Asset Quality
 
As at end-September 2019, the Public Bank Group’s gross impaired loan ratio remained stable at 0.5%, well below the domestic banking industry’s gross impaired loan ratio of 1.6%.
 
Notwithstanding this, the Group maintained a high impairment provision, as reflected in its loan loss coverage of 117.6%, which was well above the banking industry’s loan loss coverage of 88.8%. Including additional regulatory reserves set aside of RM1.9 billion, the Group’s loan loss coverage would be higher at 230.5%.
 
Tan Sri Teh highlighted, “As consumers face increased challenges from the macro environment, the banking industry is expected to experience higher impaired loans. The Public Bank Group is able to sustain a strong and stable asset quality despite its growing loan portfolio. This is supported by the Group’s consistent practices in prudent lending and proactive recoveries.”
 
Overseas Operations
 
For the first nine months of 2019, overseas operations contributed 11.0% to the Public Bank Group’s pre-tax profit, mainly attributed to the business of Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc (“Campu Bank”).
 
Tan Sri Teh added, “The Public Bank Group’s overseas operations have remained an important revenue source. For the first nine months of 2019, the Group’s total profits from its overseas business recorded a growth of 14.4%, mainly contributed by the growing profits from its Indo-China business, particularly Campu Bank and Public Bank Vietnam Limited.” 
 
Healthy Capital Position
 
As at the end of September 2019, the Public Bank Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at a healthy level of 13.1%, 13.5% and 16.5% respectively.
 
Tan Sri Teh said, “The Public Bank Group’s healthy capital base provides a strong buffer to cushion against any potential risk and enables the Group to continue pursuing business opportunities which bode well for future growth.”
 
Group’s Prospects
 
Amid the persistence of adverse developments in the macro environment largely stemming from the external front, the domestic banking sector is likely to continue facing headwinds weighing on revenue growth.
 
On this note, Tan Sri Teh said, “The Public Bank Group will maintain a cautious stance amid the growing downside risks. However, this does not hinder the Group from pursuing continued business expansion. Pockets of opportunities remain for banks to explore in the growing Malaysian and regional economies. These include sustained demand for affordable housing and new growth opportunities arising from the advancement of digital banking.”
 
Tan Sri Teh concluded, “The Public Bank Group’s fundamental strength will continue to position the Group for future growth and to develop new competitive strength centred on the Group’s strategy to continue delivering values to its stakeholders.”
 
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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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FOR IMMEDIATE PUBLICATION

31 October 2019

Cambodian Public Bank to Collaborate with China Construction Bank (Malaysia)
 
Cambodian Public Bank Plc (“Campu Bank”) signed a Memorandum of Understanding (“MOU”) with China Construction Bank (Malaysia) Berhad (“CCBM”) to establish a collaboration to jointly promote and develop business opportunities between both banks for their customers in the Kingdom of Cambodia, Malaysia, and the People’s Republic of China.
 
The MOU signing ceremony held on 24 October 2019 at Menara Public Bank was attended by Tan Sri Dato’ Sri Tay Ah Lek, Managing Director of Public Bank, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank, Datuk Phan Ying Tong, Regional Head of Indo-China Operations of Public Bank, Mr. JiZhi Hong, Executive Vice President of China Construction Bank Corporation, Mr. Felix Feng Qi, Chief Executive Officer of China Construction Bank (Malaysia) and senior management staff of both banks.
 
The signing of the MOU represents an extension of the successful business collaboration between Public Bank and China Construction Bank which commenced since 2016 for cross border financing, financial advisory, remittance, client credit assessment and referrals.
 
Campu Bank is a wholly-owned subsidiary of Public Bank which is the third largest bank in Malaysia with overseas operations in the Kingdom of Cambodia, Vietnam, Laos, Sri Lanka, Hong Kong and Mainland China. Campu Bank with a strong presence in the Kingdom of Cambodia since 1992 has grown into one of the leading foreign-owned banks with 31 branches and has contributed significantly to the development of the financial industry in the Kingdom of Cambodia.
 
Tan Sri Tay said, “The signing of today’s MOU is timely as Cambodia is experiencing rapid growth with consistent GDP of 7% for the past five years coupled with strong influx of investors from People’s Republic of China. Public Bank and China Construction Bank will be able to leverage on each other’s strength to propel our business to greater heights”.
 
CCBM is a tier 1 wholly-owned subsidiary of China Construction Bank Corporation which is the world second largest bank in terms of total assets. The signing of the MOU is also in conjunction with the opening of China Construction Bank Corporation Labuan Branch, a tier 1 branch of CCB which is established with the aspiration of becoming a regional ASEAN bank in facilitating close bilateral relationships between ASEAN countries and China.
 
Mr. Ji added, “We have established close co-operation with Public Bank since the beginning of our entry in Malaysian market in 2016. Today, we will further strengthen our co-operation with the signing of MOU between Campu Bank and CCBM.”
 

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(From left) Public Bank’s Senior General Manager of Wealth Management and Transaction Banking Division, Ms. Chan Chiew Peng, Deputy Chief Executive Officer, Y. Bhg. Dato’ Chang Kat Kiam, Managing Director, Y. Bhg. Tan Sri Dato' Sri Tay Ah Lek, Regional Head, Indo-China Operations, Y. Bhg. Datuk Phan Ying Tong, and China Construction Bank (Malaysia)'s Chief Executive Officer, Mr. Felix Feng Qi, China Construction Bank Corporation's Executive Vice President, Mr. Ji ZhiHong, General Manager of Fintech Department, Ms. Zhu YuHong, and General Manager of International Business Department, Ms. Sun JianBo at the MOU signing ceremony in Menara Public Bank.

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For Immediate Release

11 october 2019


Comments On The Budget 2020

We applaud the Government and the Minister of Finance for taking a holistic and comprehensive approach in crafting the Budget 2020.  We are delighted to note that Budget 2020 has outlined a wide range of initiatives, action plans, fiscal measures and incentives seeking to address the challenges that Malaysia is facing, which include setting the new growth direction, intensifying growth momentum, addressing high cost of living and increasing the income level of the Rakyat.
 
The Government is cognisant about driving growth in the new economy and digital era.  We welcome the measures to make Malaysia as a preferred destination for investment, accelerating the digital economy, enhancing access to financing for businesses as well as strengthening the diversity of the Malaysian economy.  In particular, we note that the Government is also developing the relevant infrastructures to enhance the ecosystem to drive growth, for example, economic zones, transportation, 5G connectivity and digital applications.
 
We will continue to play our role as a financial intermediary in support of the Government’s measures, to facilitate access of financing to businesses, particularly the small and medium enterprises.  In addition, we will continue to support financing for affordable housing, in line with the Government’s efforts to increase home ownership.  As a bank, we will strengthen our efforts to promote higher adoption of e-payments among our customers in support of Malaysia becoming a cashless society.
 

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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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Public Bank Group Achieved Pre-Tax Profit of RM3.55 Billion for the First Half of 2019 and Declared 33 sen First Interim Dividend

For Immediate Release

14 August 2019

Public Bank Group Achieved Pre-Tax Profit of RM3.55 Billion for the First Half of 2019 and Declared 33 sen First Interim Dividend
 
For the first half year ended 30 June 2019, the Public Bank Group recorded pre-tax profit of RM3.55 billion. Net profit attributable to shareholders stood at RM2.74 billion, as compared to RM2.80 billion recorded in the previous corresponding period.
 
Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank said, “The economic and banking environment was increasingly challenging. In addition to this, arising from the reduction of Overnight Policy Rate (“OPR”) in May 2019, domestic banks were faced with a decline in net interest margins which affected the profit for the half year ended 30 June 2019. However, excluding the negative effect of the OPR reduction, the Public Bank Group was able to sustain stable profitability underpinned by its healthy loans and deposits growth, stable asset quality and prudent cost management.”
 
Tan Sri Teh further added, “In the face of increasing challenges from the moderating growth of the domestic banking sector and continued interest margin compression, the Group is of the view that maintaining cost efficiency and preserving strong asset quality is key to long term business sustainability.”  With this strategic focus, the Group continued to sustain a stable gross impaired loans ratio of 0.5% and efficient cost-to-income ratio of 34.2%, leading to continued resilient net return on equity of 13.6% for the first half of 2019.
 
In view of the Public Bank Group’s stable performance, Tan Sri Teh announced that, “For 2019, the Board of Directors has declared a first interim dividend of 33 sen per share, translating into a total dividend payout of RM1.28 billion. The first interim dividend will be paid on 10 September 2019 based on the dividend entitlement date of 29 August 2019.”
 
Sustained Growth in Loans and Deposits
 
In the first half of 2019, the Public Bank Group’s total loans grew favourably by an annualised rate of 4.0% to RM323.7 billion. Domestic loans, which covered more than 90% of the Group’s loan portfolio, grew by an annualised rate of 4.3%, which was higher than the banking system’s annualised loan growth of 2.7%. The expansion in the Group’s loan portfolio was mainly attributed to the healthy growth in its core financing business in residential and commercial properties.
 
On funding side, the Public Bank Group achieved a healthy deposit growth, registering an annualised growth rate of 5.9% to RM349.1 billion. Domestic deposits grew favourably by an annualised rate of 5.7% in the first half of 2019, as compared to the banking system’s annualised deposit growth of 1.6%.
 
Tan Sri Teh said, “In expanding its deposit base, the Public Bank Group will continue to balance between deposit growth and funding cost. As at end of June 2019, the Group’s funding position remained stable with a healthy gross loan to fund and equity ratio of 78.9%.”
 
Continued Growth in Non-interest Income
 
In the first half of 2019, the Public Bank Group achieved 8.1% growth in non-interest income, mainly arising from higher investment income and higher banking fee income.
 
Tan Sri Teh added, “The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual, continued to be the largest contributor, making up 35% of the Group’s total non-interest income. In the first half of 2019, despite the volatility and uncertainties in the financial market, Public Mutual continued to lead the domestic private unit trust industry with a retail market share of 36.4%. As at the end of June 2019, Public Mutual managed a total of 151 funds, with its total net asset value increasing to RM84.4 billion from RM78.7 billion as at the end of 2018.”
 
Prudent Cost Management
 
In the first half of 2019, despite the challenges stemming from revenue growth pressure and margin compression, the Public Bank Group was able to sustain a low cost-to-income ratio of 34.2%, as compared to the banking industry’s average cost-to-income ratio of 44.6%.
 
Tan Sri Teh highlighted, “The Public Bank Group’s effective management of cost efficiency has helped to cushion the impact of interest margin pressure. The Group’s long term track record of prudent cost management will also continue to be its competitive advantage when rising cost pressure is expected to persist.”
 
Upholding Strong Asset Quality
 
As at end-June 2019, the Public Bank Group continued to achieve a low gross impaired loan ratio of 0.5%, well below the banking industry’s gross impaired loan ratio of 1.6%.   
 
Tan Sri Teh highlighted, “The Public Bank Group’s strong asset quality continued to retain public confidence amid the challenging economic environment. Notwithstanding this, the Group sustained a high loan loss coverage of 116.0%, which was well above the banking industry’s loan loss coverage of 91.1%. Including additional regulatory reserves set aside of RM1.9 billion, the Group’s loan loss coverage would be higher at 226.5%.”
 
Overseas Operations
 
For the first half of 2019, overseas operations contributed 10.5% to the Public Bank Group’s pre-tax profit, mainly contributed by Public Financial Holdings Limited Group in Hong Kong and Cambodia Public Bank Plc (“Campu Bank”).
 
Tan Sri Teh added, “For the overseas business, the Public Bank Group will continue to focus on growing its retail banking business particularly tapping on the growing opportunities in Indo-China. Besides Cambodia, the Group is actively expanding its branch network in Vietnam. For the past two years, the Group had opened 11 new branches in Vietnam, and the Group is targeting to further expand its foothold in the country to 40 branches in the next three years.”
 
Healthy Capital Position
 
As at the end of June 2019, the Public Bank Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at 13.2%, 13.6% and 16.0% respectively.
 
Tan Sri Teh said, “The Public Bank Group’s capital base stayed resilient. The Group has continued to place great emphasis on sustaining solid capital position and balance sheet strength, to support its continued business growth.”

Group’s Prospects
 
Going forward, while the Malaysian economy is expected to remain on a steady path supported by domestic demand, downside pressure including the moderating global economic growth and considerable headwinds, mainly from the external front, will continue to negatively impact business and financial market sentiment.

Tan Sri Teh concluded, “Against this backdrop, the Public Bank Group will remain on a cautious stance in growing its business. While the strong PB Brand will continue to place the Group in good stead to seize business opportunities, the Group will continue to closely monitor the changes in the operating environment, and undertake appropriate measure to fine-tune its operational strategies for continued business growth. In addition, as the Group continues to sustain its fundamental strength, it will proactively seek to develop new initiatives, such as banking digitalisation as well as innovative and distinctive financial products, for long term business growth.”

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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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Public Bank Garnered 4 Awards at the Malaysian e-Payments Excellence Awards 2019

For Immediate Release

5 August 2019

Public Bank Garnered 4 Awards at the Malaysian e-Payments Excellence Awards 2019
 
Public Bank Berhad (PBB) once again emerged as one of the top performers at the Malaysian e-Payments Excellence Awards (MEEA) 2019 held in Kuala Lumpur on 31 July 2019 securing 4 awards for its outstanding contribution towards the growth of Malaysia’s e-payment ecosystem.
 
The MEEA is organised annually by Payments Network System (M) Sdn Bhd (PayNet) to recognise the outstanding achievements of banks, businesses and government agencies that have contributed significantly towards excellence, innovation and growth in electronic payments in Malaysia.
 
The accolades awarded to PBB were: Top JomPAY Acquirer, Best MyDebit Bank, Top MyDebit Acquirer and Outstanding Contribution to MyDebit.
 
The awards were given out by the Assistant Governor of Bank Negara Malaysia, Encik Adnan Zaylani Mohd Zahid. On hand to receive the awards on behalf of PBB was its Managing Director, Tan Sri Dato’ Sri Tay Ah Lek.
 
For the third year running, PBB was recognised as the Best MyDebit Bank in Malaysia as well as retaining the Outstanding Contribution award for MyDebit and the Top MyDebit Acquirer Award.
 
The awards won by PBB are a direct result of the bank’s strong bundling of innovative e-Payment channels with stable infrastructure to provide the best support to e-Payments under a reliable, safe and secured environment.
 
PBB will continue to provide full support to boost the country’s migration to electronic payments by launching more e-Payment initiatives and continuously enhancing its digital banking platform to improve customer experience.
 
To further accelerate the growth of cashless payments in the country, PBB had on 17 July 2019 soft launched the Malaysia’s National QR Standard known as DuitNow QR with PayNet. PBB is the first Bank adopting the standard.
 
Through DuitNow QR, users can make payment from any participating Banks or e-Wallets mobile apps. Merchants would only need to display one QR Code, the DuitNow QR, to accept payments, as opposed to the current practice of displaying multiple proprietary QR codes at payment counters.
 
PBB will roll out the DuitNow QR to the public after the two months’ pilot. The commencement of DuitNow QR will expand the existing features of DuitNow to allow users to make payments to merchants using the merchant’s DuitNow QR code.
 
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(From left) PayNet's Chairman, Datuk Ahmad Hizzad, Public Bank's Chief Executive Officer/ Managing Director, Tan Sri Dato’ Sri Tay Ah Lek, Assistant Governor of Bank Negara Malaysia, Encik Adnan Zaylani Mohd Zahid and Mr. Peter Schiesser, Group CEO of PayNet at the Malaysian e-Payments Excellence Awards.

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For Immediate Release

15 July 2019

Public Bank Sponsors UCSI’s National English Essay Writing Competition on Nation Building
 
Public Bank in collaboration with UCSI University will co-organise the inaugural National English Essay Writing Competition for secondary school students.
 
The competition is held in conjunction with the 62nd Merdeka Day celebrations with the aim to encourage students to reflect and write on the role of youth in nation building. It is a step in the right direction for students to articulate their ideas and ideals on how a nation should move forward.
 
As the Main Sponsor of the competition, Managing Director of Public Bank Tan Sri Dato’ Sri Tay Ah Lek presented the Bank’s contribution of RM20,000 to UCSI University’s Vice-Chancellor and President Academician Senior Professor Dato’ Dr. Khalid Yusoff at Menara Public Bank on 12 July 2019.
 
From providing scholarships to sponsoring various literary awards since the early years of the Bank’s formation, Public Bank has been active in Corporate Social Responsibility projects that are beneficial to Malaysians in various areas, notably in the education sector.
 
According to Tan Sri Tay, “We are happy to be part of this noble endeavour to encourage youths, who will be our future leaders, to put their thoughts in writing as writing can help improve imagination as well as enhance clarity of thought.”
 
Tan Sri Tay also believes that this initiative would promote the use of the English language as it is the common language of business that is used worldwide.  “We believe this competition would also support the government’s call to improve the language proficiency among students,” he said.
 
And this was concurred readily by Professor Dato’ Dr. Khalid Yusoff who added, “This competition aims to inculcate the love for writing in English, encourage young people to take a keen interest in community and national affairs, reflect and write about them on a national platform.”
 
“Public Bank’s affirmative action to collaborate with UCSI University in this effort is laudable as it will definitely enhance the prestige and importance in promoting the use of English language amongst our youths. This would enhance our competitiveness in the long run which will benefit our country,” he said.
 
This UCSI University-Public Bank National English Language Essay Competition is open to students sitting for the SPM, STPM, O-Level, A-Level and UEC examinations. The topic of this year’s competition is “The Role of Youth in Creating a Peaceful and Harmonious Malaysia”.
 
In explaining about the competition, UCSI’s Centre for Languages (CFL) director, Ms. Margaret Soo said five winners will be selected and they will receive cash prizes of up to RM1,000, a trophy and UCSI University tuition fee waivers of up to RM10,000.
 
According to Ms. Margaret Soo, the competition is strongly supported by the Ministry of Education and other sponsors include Royal Selangor, Khind Starfish Foundation, MPH Bookstores, Le Quadri Hotel, Kuala Lumpur and Cambridge University Press.
 
Closing date for entries is 30 August 2019 and the presentation of awards will be held on 24 September 2019.
 
More information is available at https://apps.ucsiuniversity.edu.my/essay/.
 
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Public Bank’s Managing Director Tan Sri Dato’ Sri Tay Ah Lek (right) presented the Bank’s contribution of RM20,000 to UCSI University’s Vice-Chancellor and President Academician Senior Professor Dato’ Dr. Khalid Yusoff at Menara Public Bank on 12 July 2019.

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From left: Dato’ Razak Dali, Public Bank’s Public Affairs Division Senior General Manager, Daria Morozova, UCSI’s Centre for Languages English teacher,  UCSI University’s Vice-Chancellor and President Academician Senior Professor Dato’ Dr. Khalid Yusoff, Public Bank’s Managing Director Tan Sri Dato’ Sri Tay Ah Lek and Ms. Margaret Soo, UCSI’s Centre for Languages Director.
 
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Spreading Raya Cheer to Orphans Public Bank Organised 2 Charity Events for Orphans

For Immediate Release

3 June 2019

Spreading Raya Cheer to Orphans Public Bank Organised 2 Charity Events for Orphans
 
The ‘bank for the public’, Public Bank organised two events for orphans to bring happiness and joy to the less fortunate children during the holy month of Ramadhan. The orphanages that were selected are Persatuan Kebajikan An-Najjah Malaysia in Kuala Lumpur and Pusat Jagaan Rumah Kesayangan in Petaling Jaya.
 
Both orphanages have about 120 orphans aged from seven to 17 years old.
 
A continuation of the Bank’s corporate social responsibilities activities all year long, this is part of the Bank’s commitment as a caring corporate citizen.
 
This year, the Bank’s staff visited the orphanage Persatuan Kebajikan An-Najjah Malaysia on May 15 and ‘duit raya’ of RM180 was presented each to the orphans who were present, plus another RM5,000 outright donation for the orphanage to help them with their upkeep.
 
For orphans from the orphanage Pusat Jagaan Rumah Kesayangan, they were given the opportunity to go shopping for ‘baju raya’ at Mydin Hypermarket, Subang Jaya with Bank’s staff on May 16. The orphanage was also given RM5,000 outright donation.
 
Both events ended with the orphans breaking fast with Public Bank’s staff with everybody feeling happy and grateful for the eventful outings.
 

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Public Affairs Division Director Norida Mohamed (centre, in purple) presented the cheque to Persatuan Kebajikan An-Najjah Malaysia warden Junainah Junit, on behalf of the Bank.
 

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A group photo with the orphans from Pusat Jagaan Rumah Kesayangan. Public Affairs Division Director Norida Mohamed (centre, in pink) presented the cheque to Pusat Jagaan Rumah Kesayangan Shafiyah Azmi, on behalf of the Bank.

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Public Bank Group Achieved Pre-Tax Profit Of RM1.82 Billion In The First Quarter Of 2019

For Immediate Release

29 April 2019

Public Bank Group Achieved Pre-Tax Profit Of RM1.82 Billion In The First Quarter Of 2019
 
Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank, announced today, “For the first quarter of 2019, the Public Bank Group continued to sustain its financial performance, with the Group delivering pre-tax profit of RM1.82 billion, up 1.4% from the corresponding period in 2018. Net profit grew by 0.3% over the same period to RM1.41 billion.”
 
The Public Bank Group’s consistent profitability was mainly contributed by the Group’s healthy loan and deposit growth, coupled with its sustained strong asset quality. Despite the increasingly challenging banking landscape, the Group achieved 4.8% annualised growth in its total domestic loans and 4.9% annualised domestic deposit growth in the first quarter of 2019.
 
Tan Sri Teh added, “When the operating environment was still clouded by rising headwinds and persistent uncertainties, the Public Bank Group was able to sustain its performance. With the stable performance in the first quarter of 2019, the Group continued to sustain its leading position as the most cost efficient Malaysian bank with the best asset quality. This is clearly reflected in the Group’s high net return-on-equity of 14.0%, efficient cost-to-income ratio of 33.8% and lowest gross impaired loan ratio of 0.5%.”
 
Healthy Growth Momentum in Loans and Deposits
 
In the first quarter of 2019, despite challenges in the operating environment, the Public Bank Group’s total gross loans grew at an annualised rate of 3.9%, while domestic loans grew at a faster pace at 4.8% annualised rate. The expansion in the Group’s loan portfolio was mainly attributed to the healthy growth in its residential properties financing, lending to the small and medium enterprises (“SMEs”) and corporate customers for the purchase of commercial properties and working capital. The Group’s market position also continued to stand strong as it sustained its significant domestic market share of 19.8%, 35.2% and 28.7% in the financing for the purchase of residential properties, commercial properties and passenger vehicles respectively.
 
Tan Sri Teh added, “The Group’s strong position in the financing market reflects its proactive role in supporting the financing needs of consumers and businesses. To preserve financial stability and sustainability, the Group also places great emphasis on prudent and responsible lending practices. In the first quarter of 2019, the Group had approved RM13.4 billion loans in total, of which 57.0% was granted to retail consumers for the purchase of residential properties and passenger vehicles; whereas 20.3% represented lending to SMEs. This reflects the Group’s continuous support of homeownership and SMEs in the country.”
 
In tandem with the healthy loan growth, the Group’s total customer deposits grew at an annualised rate of 4.5% for the first quarter of 2019. The Group’s liquidity position remained healthy with its funding position being continuously supported by stable deposits.
 
Tan Sri Teh reiterated, “Amid the more moderate growth in the economy and rising competition in the domestic banking landscape, banks continued to face margin pressure in growing their financing and deposit portfolio. The Group has therefore increased its focus on its asset and liability management. This includes efforts in growing its low-cost current and savings deposits as well as tapping on its new PB Enterprise platform to enhance its cash management services.”
 
Stable Non-interest Income
 
Heightened uncertainties in the global economy and increased volatility in the financial market continued to pose challenges to banks in growing their non-interest income. Despite the challenging backdrop, the Public Bank Group continued to generate stable fee-based revenue, which were mainly driven by its unit trust business and banking transaction business.
 
Tan Sri Teh highlighted, “Public Mutual, the Public Bank Group’s wholly-owned unit trust management subsidiary, remained the largest contributor to the Group’s non-interest income. As at the end of the first quarter of 2019, Public Mutual had a total of 148 unit trust funds under its management, translating into a total net asset value of RM81.6 billion. This also resulted in Public Mutual sustaining its pole position in the domestic private unit trust industry, with a significant retail market share of 36.4%.”
 
Prudent Cost Management
 
In the first quarter of 2019, the Public Bank Group continued to record an efficient cost-to-income ratio of 33.8%, significantly better than the banking industry’s average cost-to-income ratio of 44.6%.
 
Tan Sri Teh said, “Amid rising cost pressure, the Group continued to practise efficient deployment of resources to further enhance productivity. Prudent cost management has always been part of the Group’s operating strategy in pursuing revenue growth whilst sustaining high return to its shareholders.”
 
Sustained Strong Asset Quality
 
The Public Bank Group continued to place strong emphasis on maintaining strong asset quality, with its gross impaired loan ratio remaining the lowest at 0.5% in the first quarter of 2019, as compared to the banking system’s gross impaired loan ratio of 1.5%.
 
Tan Sri Teh added, “As at the end of March 2019, the Group sustained a high loan loss coverage ratio of 124.7%, well above the banking industry’s loan loss coverage of 96.2%. Including additional regulatory reserves set aside of RM1.9 billion, the Group’s loan loss coverage ratio would be much higher at 244.0%.”
 
Overseas Operations
 
The Public Bank Group’s overseas operations continued to record stable profitability, contributing 10.3% to the Group’s total pre-tax profit in the first quarter of 2019. Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc (“Campu Bank”) remained the main contributors to the Group’s overseas business profits.
 
Tan Sri Teh highlighted, “In view of the growing potential of the Indo-China market, the Public Bank Group is actively pursuing opportunities in this area leveraging on its long-established footprint, particularly in Cambodia whereby Campu Bank continues to be the largest foreign bank in Cambodia.”
 
Tan Sri Teh further added, “The Public Bank Group’s operations in Vietnam, despite still being a small contributor to the Group’s profit currently, is also a key focus of the Group’s overseas business growth strategy. Since Public Bank Vietnam Limited (“PBVN”) became a wholly-owned foreign subsidiary of the Group in 2016, the Group has been strengthening its presence in Vietnam. From 7 branches in 2015, PBVN has today expanded to a network of 18 branches. This year, there will be further opening of 8 new branches, subject to regulatory approval. In the medium term, the Group is targeting to build a wide network of about 40 branches in Vietnam. This will further strengthen the Group’s foothold in the Indo-China market, particularly in Vietnam in addition to Cambodia.”
 
Healthy Capital Position
 
The Public Bank Group’s capital position remained stable, as reflected in its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio which stood at 12.9%, 13.4% and 16.0% respectively as at the end of March 2019.
 
Tan Sri Teh reiterated, “The Group has in place a robust capital management framework to guide its capital management strategy. The Group is always mindful that as it pursues business growth, it is important to ensure its capital position complies with regulatory requirement and is aligned with the Group’s risk appetite.”
 
Group’s Prospect
 
While the Malaysian economy is expected to remain on a sustained growth path in 2019, it is likely to be another year of challenges given the prevailing external headwinds. This is expected to continue to weigh on domestic sentiments, with increased downside risks to the domestic economic environment.
 
Tan Sri Teh said, “The increasingly challenging macro environment will continue to pose downside pressure on the Malaysian banking sector.  However, tapping on the expanding domestic economy and domestic demand, the ongoing demand for financing and banking products will continue to create opportunities for banks to pursue. The Public Bank Group will continue to grow its business while remaining cautious on downside risks. While the Group’s long term banking strength will continue to place the Group in good stead to embrace growth, the Group will further strengthen its core competencies, such as digital capabilities and superior customer service, to capture prospective opportunities and deliver sustained performance in this changing environment.”
 
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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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Public Bank's 53rd Annual General Meeting Held On 22 April 2019

For Immediate Release

22 April 2019

Public Bank’s 53rd Annual General Meeting Held On 22 April 2019
 
In conjunction with Public Bank’s 53rd Annual General Meeting held on 22 April 2019, the Founder, Chairman Emeritus, Director and Adviser of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to present a review of the Public Bank Group’s performance in 2018.
 
Performance Review
 
Tan Sri Teh said, “The Public Bank Group made good business progress and achieved pre-tax profit of RM7.10 billion in 2018. Net profit attributable to shareholders rose by 2.2% to RM5.59 billion in 2018 from RM5.47 billion in 2017. As a result, earnings per share increased by 1.9% to 144.4 sen in 2018.”
 
Tan Sri Teh added, “Despite facing a more challenging business climate, the Public Bank Group was able to sustain stable profitability in 2018 due to its continuous effort to drive revenue growth, coupled with the Group’s strong asset quality and prudent cost management. With that, the Group maintained its leading position amongst domestic banking groups in Malaysia with the highest net return on equity of 14.8%, most efficient cost to income ratio of 33.0% and lowest gross impaired loans ratio of 0.5%.”
 
Tan Sri Teh further added, “In view of the Group’s stable financial performance in 2018, a second interim dividend of 37 sen was paid on 14 March 2019. Together with the first interim dividend of 32 sen paid in September 2018, the shareholders would have received a total dividend of 69 sen per share for 2018.” The total dividends paid amounted to RM2.68 billion, representing a payout of 47.9% of the Group’s net profit in 2018.
 
Healthy Growth in Loans and Customer Deposits
 
The Public Bank Group’s lending activities continued to be driven by the financing of residential properties and passenger vehicles, as well as lending to small and medium enterprises for the purchase of commercial properties and working capital.
 
Tan Sri Teh highlighted that, “Despite intense market competition, the Public Bank Group achieved healthy loans growth of 4.2% in 2018, whilst the Group’s customer deposits expanded by 6.2%.”
 
Tan Sri Teh further added, “The Public Bank Group retained its pole position in the domestic financing for the purchase of residential properties and commercial properties with market shares of 19.8% and 35.2% respectively as at the end of 2018.”
 
Superior Asset Quality
 
Tan Sri Teh said, “The Public Bank Group’s gross impaired loans ratio of 0.5%, which is well below the banking industry’s gross impaired loans ratio of 1.5%, remained the best and ranked no. 1 amongst the Malaysian banking groups.”
 
With the adoption of MFRS 9 on 1 January 2018, the Group's loan loss coverage ratio further increased from 95.5% as at the end of 2017 to 126.0% as at the end of 2018, surpassing the banking industry’s loan loss coverage ratio of 97.9%. With the inclusion of regulatory reserves, the Group’s loan loss coverage ratio would be significantly higher at 237.5%.
 
International Operations
 
In 2018, the pre-tax profit of the Public Bank Group’s international operations increased marginally by 0.4% to RM690.7 million. The Group’s international operations contributed 9.7% to the Group’s total pre-tax profit in 2018, mainly from Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc.
 
Tan Sri Teh commented, “The Public Bank Group has been actively growing its business in Vietnam through the expansion of branches. The Group opened five new branches in 2018, bringing the total branches to 18. The Group plans to open 8 new branches in 2019, subject to regulatory approval, to further expand its market presence in Vietnam.”
 
Stable Contribution from Non-Interest Income
 
In view of the more cautious sentiment in the market place, growing fee-based business had been a challenge in 2018. During the year, the Public Bank Group’s fee income growth was mainly driven by its unit trust and banking transaction businesses.
 
Tan Sri Teh said, “The Group’s wholly-owned unit trust management company, Public Mutual, continued to be the major contributor to the Group’s non-interest income. As at the end of 2018, Public Mutual managed a total of 147 unit trust funds which amounted to a net asset value of RM78.75 billion, sustaining its top ranking in the domestic private unit trust business with a significant retail market share of 37.2%.”
 
Healthy Capital and Liquidity Position
 
The Public Bank Group’s capital position remained healthy with its common equity Tier I capital ratio, Tier I capital ratio and total capital ratio, after deducting second interim dividends, standing at 13.1%, 13.7% and 16.3% respectively as at the end of 2018. The Group’s liquidity position also remained healthy, as reflected in its gross loans to fund and equity ratio of 79.0% as at the end of 2018.
 
Tan Sri Teh commented that, “The Public Bank Group will always ensure that its capital and liquidity position comply with regulatory requirements with adequate buffers available to support long term growth as well as pursuit of the Group’s strategic business objectives.”
 
Superior Returns to Shareholders
 
The Public Bank Group continues to deliver consistent and superior returns to its shareholders, both over the medium term and long term.
 
Tan Sri Teh highlighted, “If a shareholder of Public Bank had bought 1,000 shares in Public Bank when it was listed in 1967, and assuming the shareholder had subscribed for all rights issues to date and had not sold any of the Public Bank shares, he would have 148,938 Public Bank shares worth RM3.3 million as at today. In addition, he would have received a total gross dividend of RM1.3 million. This translates into a total value of RM4.6 million, representing a remarkable compounded annual rate of return of 19% for each of the 51 years since 1967.”
 
Digital Initiatives
 
Tan Sri Teh said, “Accelerating digitalisation is one of the Public Bank Group’s key focus area. The Group takes a practical approach in its pursuit of digital initiatives, going along customers’ needs and their readiness to adopt digital-driven services, at the same time mindful of the associated risks such as cyber security threat, and the short life cycle of application as a result of rapid advancement in technology.”
 
As of today, Public Bank has implemented several initiatives for digital payment services in line with industry trend, such as AliPay, Samsung Pay, WeChat Pay and DuitNow. For onboarding of new customers, Public Bank has also implemented the eSignature at all branches, which has significantly reduced the time taken to onboard customers.
 
Public Bank’s internet and mobile banking, PBe and PB engage, continue to be enhanced with new functions and features. In terms of the number of users, Public Bank’s internet and mobile banking have achieved good growth. Between 2014 and 2018, PBe users grew by 25% compounded annual growth rate (“CAGR”) to a total of 2.4 million users. Similarly, PB engage users also grew by 85% CAGR to 1.1 million users.
 
Currently, Public Bank is working on several fintech initiatives such as Big Data Analytics, Open API, eKYC, and blockchain.
 
Tan Sri Teh highlighted, Over the last three years, Public Bank has invested about RM400 million on IT-related capital expenditure, which include spending on digital infrastructure. Of this amount, about RM90 million was spent specifically on fintech-related initiatives. Going forward, the Bank is planning to invest another RM600 million in the next three years to further enhance ICT infrastructure, digital capability and knowledge.
 
Corporate Responsibility
 
Tan Sri Teh said, “As the third largest banking group in Malaysia, the Public Bank Group is committed to promote sustainable and responsible banking practices, and continue to maintain a business model that creates value for its stakeholders and the wider community. The Group has played, and continues to play a key role in supporting the broad range of the community’s financial needs - both through the products and services that the Group provides as well as through the funding that the Group contributes to the community.”
 
Through the Public Bank Group’s business, charitable donations and staff volunteerism, the Group continues to create positive social impact which will benefit the communities in which the Group operates. With total tax payment of RM1.53 billion made by the Group in 2018, the Group is a major contributor to the nation’s well-being and development. In recognition of Public Bank’s contribution to the country’s fiscal revenue, Public Bank was one of the 11 recipients of the “Best Tax Payer Award 2018” by Inland Revenue Board of Malaysia.
 
Tan Sri Teh added, “One of the Public Bank Group's key focus area in sustainability is responsible lending, particularly in providing financing for first time home buyers and supporting the financing needs of the SME segment. With a lending portfolio for residential properties and SMEs amounting to RM110.5 billion and RM69.5 billion respectively as at the end of 2018, the Group is the largest domestic financier for these two key segments today, which is a testament to the Group's unwavering commitment in supporting home ownership and SMEs over the years. The Group has also continued to proactively participate in a broad range of government and Bank Negara Malaysia's initiated financing schemes for affordable homes and support of SMEs. For customers who are facing financial difficulties, the Group is committed to provide assistance which range from short term to longer term assistance such as rescheduling or restructuring of loans and granting of moratorium to customers who are affected by natural disaster. All these efforts reflect the integration of sustainability into the Group’s corporate culture, and the Group’s mission and strategies for its banking business.”
 
In 2018, the Public Bank Group has approved more than 42,000 housing loans amounting to RM16.18 billion in Malaysia, of which 62.3% were for the purchase of affordable properties. The Group has also supported the SME segment, the key engine of growth in the country, with easy access and hassle free financing to meet their business needs. In 2018, loans approved for SMEs amounted to RM11.05 billion and accounted for 20.7% of the Group's domestic loans portfolio. This year, the Group has also introduced the Skim Rumah Pertamaku - PB First Home Loan in support of the government's effort to assist low income earners to own a home. In 2018 alone, the Group has granted moratorium to more than 4,000 customers affected by flood which amounted to over RM600 million.
 
Tan Sri Teh further added, “Over the next three years, the Group is targeting to approve a total of RM50 billion of housing loans and RM40 billion of SME loans, demonstrating its continued strong support of the government efforts in promoting home ownership and SME business in the country”.
 
 Recognition of Banking Excellence
 
Over the years, Public Bank, under the astute leadership of its Founder, Chairman Emeritus, Director and Adviser, Tan Sri Dato’ Sri Dr. Teh Hong Piow, has won more than 500 awards in recognition of its banking excellence. These awards were conferred by reputable domestic and international publications as well as independent organisations. In 2018 alone, Public Bank garnered a total of 34 awards. Some of the notable awards received include:
  • Best Bank in Malaysia 2018 by Alpha Southeast Asia
  • Best Bank In Malaysia 2018 by Euromoney
  • Best Retail Bank by Alpha Southeast Asia
  • Best Domestic Bank in Malaysia 2018 by The Asset
  • The Strongest Bank by Balance Sheet in Malaysia 2018 by The Asian Banker
  • 8th Asian Excellence Recognition Awards 2018 for Best Investor Relations Company for Malaysia by Corporate Governance Asia
  • The Asset Platinum Award 2018 for Excellence in Environmental, Social and Corporate Governance by The Asset  
In the recent Lipper Fund Awards, Public Mutual broke the record for the most number of Lipper Fund awards won by a single company in a year with a total of 29 awards.

Outlook
 
On the strategic directions and outlook for the Public Bank Group, Tan Sri Teh commented that, “The operating environment is expected to be more challenging. As innovation and the use of technology and information gather pace, the banking landscape will continue to change. To achieve sustainable growth, the Public Bank Group will continue to drive business and digital innovation to support operational efficiency and improve responsiveness. With the Group’s resilient financial performance track record and having overcome all the challenges faced in its 52 years journey, the Group is positive that its sound business model focusing on organic growth strategy in the retail banking business and prudent credit practices will enable the Group to continuously deliver long term value to all its stakeholders.”
 
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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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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder, Chairman Emeritus, Director and Adviser of Public Bank

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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

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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