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A BMW 330e M-Sport and Other Exciting Prizes  Await Public Bank’s Mastercard Credit Cardholders
FOR IMMEDIATE RELEASE

5 December 2022

A BMW 330e M-Sport and Other Exciting Prizes Await Public Bank’s Mastercard Credit Cardholders
 
Fancy a nice long drive in a stylish BMW for a holiday after the long-awaited post-pandemic recovery? Public Bank (PB) and Mastercard have the answer with the launch of the ‘Driven to Win’ campaign which gives away a BMW 330e M-Sport, as well as other exciting prizes such as the Samsung Galaxy Z Flip 4, Samsung 65” UHD TV, Dyson V8 Slim Fluffy+ Vacuum and RM88 Cash Back to 321 lucky PB Mastercard Credit Cardholders.
 
To qualify for the ‘Driven to Win’ campaign, cardholders only need to spend using their Public Bank or Public Islamic Bank Mastercard Credit Card. Upsized entries are given to new cards and for usage on selected categories.
 
On top of that, New-to-Bank Public Bank or Public Islamic Bank Mastercard credit cards approved from 25 November 2022 until 31 March 2023 are eligible for a one-time RM300 Cash Back with a minimum of only RM500 accumulative retail spend within 60 days from the card approval date.
 
To support the post-pandemic tourism boom, the second campaign launched by Public Bank is the ‘Travel Further and More Campaign with PB Mastercard Credit Card’.
 
Great prizes ranging from travel vouchers by Holiday Tours, airasia points, 2-in-1 trolley bag sets and RM128 Cash Back are up for grabs until 28 February 2023.
 
Cardholders only need to make a minimum of RM2,000 accumulative travel-related spending in a month to stand a chance to win prizes. Not only that, cardholders are also able to convert RM3,000 of spending in a single-receipt into 0% instalment for 10 months.
 
“Mastercard is excited to collaborate with Public Bank on these two new campaigns as part of the organisation’s continued commitment to bring seamless and fulfilling experiences to consumers in Malaysia. While one campaign rewards cardholders for any spend and encourages the use of cashless payments, the other campaign awards them in the categories that they are highly likely to be spending in during this time of the year. With the reopening of borders and pent-up travel demand post-COVID, consumers are seeking priceless travel experiences. This campaign therefore ties in closely with their spending behaviour, enabling cardholders to be rewarded while they spend on their travel and indulge in memorable moments,” said Beena Pothen, Country Manager, Malaysia and Brunei, Mastercard.
 
To find out more on the promotions, log on to Public Bank’s website at www.publicbankgroup.com or call PB Customer Service at 03-2170 8000.
 
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From left to right: Mr. Devesh Kuwadekar, Vice President, Business Development, Mastercard; Mr. Tee Chui Chee, General Manager, PB Card Services & Support;
Ms. Beena Pothen, Country Manager, Malaysia and Brunei, Mastercard; and Ms. Felina Saw, Senior Manager, PB Card Services & Support.
 
Public Bank Offers Exquisite Limited Edition Gifts “PB Golden Fortune Usher in the Year of Rabbit with Auspicious Gifts”
FOR IMMEDIATE RELEASE
 
1 December 2022
 
Public Bank Offers Exquisite Limited Edition Gifts “PB Golden Fortune Usher in the Year of Rabbit with Auspicious Gifts”
 
In conjunction with the forthcoming Chinese New Year Celebration, Public Bank is pleased to launch the “PB Golden Fortune Campaign” which is open to all new and existing individual Public Bank customers. The Campaign offer period is from 1 December 2022 to 28 February 2023.

Two exquisite limited edition auspicious gifts consisting of “24K Gold-Plated Triple Abundances of Wealth” and “24K Gold-Foiled Double Blessing of Happiness” will be offered under the Campaign, each represents an excellent piece of gold craft that symbolises prosperity and success. Both gifts are only available on first-come, first-served basis, while stock lasts.

There are two plans i.e. PB Golden Plan and PB Fortune Plan for customers’ selection. Customers can participate in the Campaign with the purchase of Unit Trust Funds (UT) or insurance products and at the same time place deposit in selected Current / Savings Accounts in order to get the exclusive gift(s). PB Golden Plan offers one “24K Gold-Foiled Double Blessing of Happiness” and PB Fortune Plan comes with one “24K Gold-Plated Triple Abundances of Wealth”.

PB Golden Fortune 2023 Campaign is designed for customers who are looking for a diversified investment portfolio. Customers can choose from a vast selection of UT that cater to various investment strategies and risk tolerance levels in accordance with their risk appetite in order to achieve their financial goals.

Customers can also invest in Single Premium Investment-Linked Insurance Plan or Shariah-Compliant Single Contribution Investment-Linked Takaful Plan that provides insurance coverage / takaful protection upon death or Total and Permanent Disability (TPD) and investment returns.
 
Customers can select the PB Golden Plan or PB Fortune Plan to be rewarded with the limited edition auspicious gift or collect both designs by signing up for multiple plans.

To find out more about Public Bank campaigns, customers are welcomed to visit any of our PBB branches or log on to PBB website. Terms and conditions apply.
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Public Bank Group Posted Pre-Tax Profit of RM6.31 Billion for the First Nine Months Ended September 2022 and Declared 4.0 Sen Second Interim Dividend
FOR IMMEDIATE RELEASE
 
30 November 2022
 
Public Bank Group Posted Pre-Tax Profit of RM6.31 Billion for the First Nine Months Ended September 2022 and Declared 4.0 Sen Second Interim Dividend
 
Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank announced that the Public Bank Group posted a pre-tax profit of RM6.31 billion and net profit attributable to shareholders of RM4.41 billion for the first nine months of 2022.

Tan Sri Teh commented, “Despite the prolonged headwinds in the global economy, the Malaysian economy remained on the recovery trajectory, mainly supported by improving domestic demand. Tapping on the growing economy, the Public Bank Group’s pre-tax profit improved by 13.5% for the first nine months of 2022, compared with the corresponding period in 2021. Net profit attributable to shareholders grew by 3.0% after taking into account the one-off impact of prosperity tax.”

The 9-month profit growth was mainly due to higher net interest income growth by 7.7% and lower loan impairment allowances by 70.0%, but partially offset by lower non-interest income by 11.0%.

Tan Sri Teh said, “For the first nine months of 2022, the Public Bank Group’s loans and deposits continued to achieve healthy annualised growth of 5.8% and 4.5% respectively. Backed by its strong fundamentals and prudent management, the Group sustained a resilient net return of equity of 12.4% and efficient cost-to-income ratio of 32.6%. Gross impaired loans ratio remained strong at 0.3%, despite the expiry of PEMULIH repayment assistance programme.”

In view of the favourable performance, Tan Sri Teh is pleased to announce that, “The Board of Directors is declaring a second interim dividend of 4.0 sen per share, which will result in a total dividend payout of RM776.4 million. The second interim dividend will be paid on 23 December 2022 based on the dividend entitlement date of 15 December 2022.”
 
Loans and Deposits Businesses

As at the end of September 2022, the Public Bank Group’s total loans expanded at an annualised rate of 5.8% to RM373.6 billion. Domestic loans grew at an annualised rate of 5.2% to RM347.8 billion, mainly supported by residential properties and hire purchase financing which expanded at an annualised rate of 7.4% and 9.9% respectively.

Tan Sri Teh further commented, “Supported by the improving economic conditions, the Public Bank Group’s total domestic loans approval surged by 30.2% in the first nine months of 2022, reinforcing the Group’s leading market share in the residential properties and hire purchase financing, which stood at 20.6% and 30.4% respectively.”

On deposit-taking, the Group’s total customer deposits achieved an annualised growth of 4.5% to RM393.3 billion during the same period. Domestic deposits rose by an annualised rate of 4.5% to RM364.6 billion, mainly supported by current and fixed deposits which grew by an annualised rate of 7.5% and 7.3% respectively.

Tan Sri Teh said, “The Public Bank Group’s liquidity and funding structure remained healthy and supportive of its lending activities, with gross loan to fund and equity ratio of 81.3% as at 30 September 2022.”

Non-Interest Income

For the nine months ended September 2022, the Public Bank Group’s non-interest income was lower by 11.0%, largely due to the lower unit trust fees, stockbroking income as well as investment income amidst the unfavourable market conditions.

Tan Sri Teh highlighted, “Despite the weaker market performance, the Group’s unit trust business through its wholly-owned subsidiary, Public Mutual registered a        pre-tax profit of RM580.4 million in the first nine months of 2022, contributing 45% to the Group’s non-interest income. As at end-September 2022, Public Mutual continued to capture a large retail market share of 34.4%, with a total of 179 unit trust funds and total assets under management of RM88.7 billion.”

Cost Management

Overhead expenses increased by 6.3% in tandem with the resumption of economic activities. Notwithstanding this, the Public Bank Group continued to be the most cost efficient bank in the domestic banking industry, with the lowest cost-to-income ratio of 32.6% in the first nine months of 2022.

“Amid the high inflationary pressure, sustaining a high level of cost efficiency remains a competitive edge enabling the Group to continue implementing strategic plans to achieve business growth. The Group will continue its strategic investment in digital transformation and staff development to further strengthen long term productivity and business sustainability.” Tan Sri Teh said.

Asset Quality

As at end-September 2022, the Public Bank Group sustained a low gross impaired loans ratio of 0.3%, significantly lower than the domestic banking industry’s average gross impaired loan ratio of 1.8%.

Tan Sri Teh highlighted, “As the economy is gradually improving and with the expiry of the PEMULIH repayment assistance schemes, the Group has observed a stable repayment trend from customers. Despite the current challenges in the economy, the Group continued to maintain sound asset quality underpinned by its resilient loan portfolio and prudent lending practices.”

As at end-September 2022, the Group’s loan loss coverage ratio stood at 339.5%, significantly higher than the banking industry’s loan loss coverage ratio of 97.8%. Including regulatory reserves, the Group’s loan loss coverage ratio was higher at 359.6%.

Overseas Operations

For the first nine months ended September 2022, the Public Bank Group’s overseas operations contributed 7.6% to the Group’s profit, mainly attributed to its Hong Kong and Indochina operations.

Tan Sri Teh highlighted, “The Group continues to see good business opportunities in Indochina, particularly in Vietnam. In the first nine months of 2022, Public Bank Vietnam’s profit grew favourably by 13.4% as compared with the corresponding period last year.”

Capital and Liquidity Position

As at the end of September 2022, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at a healthy level of 14.0%, 14.0% and 17.1% respectively, after deducting the second interim dividend. The Group’s liquidity coverage ratio also remained stable at 123.2%.

Tan Sri Teh reiterated, “Underpinned by its prudent approach in managing its financial resources, the Group continues to maintain a healthy balance sheet. This enables the Group to continue driving business growth despite the uncertainties in the operating environment.”

Group’s Prospects

The Malaysian economic growth gains further momentum as the nation continues its post-pandemic recovery. While external trade is expected to moderate amidst a slower global economic growth, domestic demand continues to support economic expansion, with the job market and income prospects improving. 

However, downside risks remain stemming from inflationary pressure, lingering supply chain disruptions, global monetary policy tightening and geopolitical tensions which could further weigh on the global economy.

Tan Sri Teh commented, “The Public Bank Group will remain vigilant to the uncertainties and challenges. The Group will continue to build business resilience by maintaining healthy capital position, preserving asset quality, further strengthening its risk management capabilities and upholding sound corporate governance practices.”

“As the Group continues to leverage on its core banking business to grow its business, the Group will remain agile in strategy implementation to capture any business opportunities arising from the economic recovery and evolving business landscape.” Tan Sri Teh concluded.

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Tan Sri Dato’ Sri Dr. Teh Hong Piow
Founder, Chairman Emeritus, Director and Adviser
Public Bank Berhad

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Public Bank Among the First to Enable Google Wallet Payments in Malaysia
FOR IMMEDIATE RELEASE

15 November 2022
 
Public Bank Among the First to Enable Google Wallet Payments in Malaysia
 
Public Bank Visa Credit and Debit cardmembers can now enjoy a convenient and secure way to pay in-store, online and in-app with Google Wallet.
 
As one of the first Malaysian banks to enable Visa cards on Google Wallet, Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Tay Ah Lek said this rollout is part of Public Bank’s continuous effort to provide a seamless and secure banking experience for its customers through the digitalisation of banking services.
 
“Consumers’ shift to digital payments have accelerated over the past few years and Public Bank is confident that by enabling our cards on Google Wallet, we will add further value to our card members,” Tan Sri Tay said.
 
With Google Wallet, Public Bank Visa Credit and Debit cardmembers can pay by tapping their Android devices at any merchant that support contactless payment, eliminating the need to use the physical card. Apart from convenience, Google Wallet has multiple layers of security, including industry-standard tokenisation.
 
With the added convenience, Public Bank cardmembers will continue to enjoy all the benefits of their Visa debit and credit cards ranging from cashbacks and additional discounts from purchases that are only exclusive to Public Bank cardmembers.

To celebrate the launch, cardmembers who make four (4) Google Wallet retail transactions using their Public Bank Visa credit or debit cards will be rewarded with RM50 cashback. The promotion is valid until 14 March 2023. Terms and conditions apply. 
 
To find out more on the promotion, log on to Public Bank’s website at www.publicbankgroup.com or call PB Customer Service at 03-2176 8000.
 
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Public Bank and Public Islamic Bank To Increase Its Loan/ Financing Reference Rates By 0.25%
FOR IMMEDIATE RELEASE

3 November 2022
 
Public Bank and Public Islamic Bank To Increase Its Loan / Financing Reference Rates By 0.25%

Public Bank will increase its Standardised Base Rate (SBR), Base Rate (BR) and Base Lending Rate (BLR) / Base Financing Rate (BFR) by 0.25% effective 7 November 2022, in line with Bank Negara Malaysia’s Overnight Policy Rate (OPR) hike by 25 basis points from 2.50% to 2.75% on 3 November 2022. The Bank’s SBR will be 2.75% in tandem with the OPR while the BR will increase to 3.27% from 3.02% and the BLR/BFR will increase to 6.47% from 6.22%.
 
At the same time, Public Bank’s fixed deposit rates will also be adjusted upwards, effective on the same date.

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Comments On The Budget 2023
FOR IMMEDIATE RELEASE

7 October 2022
Comments On The Budget 2023
 
In the face of an increasingly volatile global economic landscape, we applaud the Government’s vision in setting out our nation’s near and medium-term course with a well-planned Budget 2023. It strikes the right balance between on-going prioritisation of the Rakyat’s well-being while guarding against potential challenges, and also sustaining Malaysia’s post-pandemic growth.

The Public Bank Group has played its role steadfastly in actively facilitating growth through the years. Our efforts will be intensified further as Malaysia continues to transition toward becoming a high-income nation. Budget 2023’s spirit of inclusiveness reflects the Government’s promise of leaving no one behind. The Government’s planned expenditure of a notably higher RM372.3 billion in 2023 with 37.2% allocated for programmes and projects under the social sector shows its resolve and commitment in reducing the income gap between the Rakyat and the development gap among the states. This will help ensure Malaysia progress successfully and sustainably as a nation.

Budget 2023 adequately addresses the current needs of the B40 and M40 groups through various cash assistance programs with widened eligibility criteria, tax incentives for home ownership and extension of employment-related initiatives, amongst others. Micro, Small and Medium-sized Enterprises (MSMEs) will also be supported through access to traditional and alternative financing options, tax incentives and extension of grants, amongst others. Issues like food security and preparedness for natural disasters were also addressed, in addition to infrastructure spending covering healthcare and education, and digital infrastructures to address development and digital gaps.

We read, on a daily basis, of the stark realities of an environment increasingly ravaged   by the negative and far-reaching effects of climate change. Much progress has been made, but more will still need to be done. We laud the Government’s renewed focus on sustainability-based initiatives in Budget 2023, with more emphasis given toward enhancing green investments for the development of low-carbon, resilient and healthy urban environments. To this end, the Government’s higher expenditure of RM95 billion for development in 2023 will see allocations channelled to programmes and projects with high socio-economic impacts in line with the United Nation’s Sustainable Development Goals (SDG). The Public Bank Group has already embarked on this journey and reaffirms its commitment in partnering the government and various stakeholders toward advancing these agendas.

We are fully supportive of Budget 2023 which is expansionary but necessary in current times to sustain the post-pandemic recovery of the nation. We are confident that the continued partnership of the public and private sectors will enhance the resilience of our economy and strengthen our recovery, while enhancing the well-being of the Rakyat.
 

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

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Dedicated and Responsive Assistance for 
Public Bank’s Customers Affected by Frauds and Scams
FOR IMMEDIATE RELEASE

29 September 2022
 
Dedicated and Responsive Assistance for Public Bank’s Customers Affected by Frauds and Scams
 
The five key measures to combat scams announced by the Governor of Bank Negara Malaysia, Tan Sri Nor Shamsiah binti Mohd Yunos at the Financial Crime Exhibition 2022 held on 26 September 2022 will effectively raise the level of online banking security, Public Bank said in a statement today.
 
Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Tay Ah Lek said Public Bank will continue to emphasise on banking security for customers to ensure that all customers can conduct their online banking transactions in a secure and safe environment.
 
Public Bank has taken further steps to address the rising trend of frauds and scams including providing 24 hours assistance to customers via its Case Management Unit. “The unit is staffed with specially trained and experienced staff to provide the necessary and timely assistance to affected customers. As time is of the essence, Public Bank’s staff will be available to assist you 24/7,” Tan Sri Tay said.
 
Upon receiving a fraud or scam report, access to the customer’s PBe Internet Banking and PB engage Mobile Banking will be terminated immediately. This will prevent further unauthorised transfers while the Bank expedite recovery of stolen funds.
 
To further empower customers, since March this year, customers can also self-deactivate their access to PBe Internet Banking and PB engage Mobile Banking under such circumstances via the PBe login page. Reactivation can only be done at the branch or by the staff at the Case Management Unit with the necessary verifications.
 
Staying vigilant is vital and Public Bank has also stepped up its efforts to protect customers’ accounts by introducing a series of counter measures in its fraud detection and prevention system based on the evolving modus operandi of frauds and scams. The system will flag out suspicious and abnormal transactions performed on customers’ account and they are constantly reviewed to determine the effectiveness. Customers transferring to any new beneficiary via PBe and PB engage will also be prompted with a warning message to alert customers to be extra cautious before proceeding with the transfer.
 
In addition, Public Bank has deployed a more secure authentication method via mobile app security token known as PB SecureSign (PBSS) on the PB engage Mobile Banking since August 2020 that can counter one of the fraud tactics by scammers using the Android Package Kit (APK).
 
The PBSS can only bind to one mobile device with a stringent activation process where customers who have registered PBSS on their PB engage are required to activate it via Branch, ATM or by contacting PBe Customer Support.
 
Public Bank will also enable transaction approval via PB SecureSign app (PBSS) for PBe Internet Banking by October 2022. Similar to PB engage, customers with PBSS activated can approve transactions in a more secure authentication method. This will replace the PBe Authentication Code (PAC) via SMS which will eventually be phased out.
 
Since 2017, Public Bank has maintained a record of about 100,000 reported mule accounts of the industry. Based on this mule database, for the first half of 2022, approximately 500,000 of our customers’ accounts were prevented and saved from the attempted fraudulent transfers of close to RM900 million to these mule accounts.
 
Public Bank is fully committed to work steadfastly with all parties to combat this security threat and has also embarked on intensive education efforts to keep customers updated of the latest trend and evolving modus operandi of frauds and scams happening.
 
These education efforts also include raising customer awareness on the importance of being vigilant at all times by NOT clicking on UNKNOWN links, safeguarding their privacy and banking information, being careful with suspicious apps before installing them to ensure that their devices remain secure at all times and other precautions needed to safeguard customers from frauds and scams.
 
Customers can visit Public Bank’s Online Security microsite at  https://www.pbebank.com/onlinesecurity/index.html and by staying informed, will help to keep scams and frauds at bay. Meanwhile, in the event a fraud took place or if customers noticed any irregularities in their bank accounts, they can contact the Case Management Hotline at 03-2177 3555 to seek assistance.
 
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Public Bank and Public Islamic Bank To Increase Its Loan / Financing Reference Rates By 0.25%
FOR IMMEDIATE RELEASE

9 September 2022
 
Public Bank and Public Islamic Bank To Increase Its Loan / Financing Reference Rates By 0.25%
 
Public Bank will increase its Standardised Base Rate (SBR), Base Rate (BR) and Base Lending Rate (BLR) / Base Financing Rate (BFR) by 0.25% effective 12 September 2022, in line with Bank Negara Malaysia’s Overnight Policy Rate (OPR) hike by 25 basis points from 2.25% to 2.50% on 8 September 2022. The Bank’s SBR will be 2.50% in tandem with the OPR while the BR will increase to 3.02% from 2.77% and the BLR/BFR will increase to 6.22% from 5.97%.
 
At the same time, Public Bank’s fixed deposit rates will also be adjusted upwards, effective on the same date.
 
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Public Bank and Sunway Property Signed MoU to Promote End-Financing for Green Development Projects
FOR IMMEDIATE RELEASE
 
5 September 2022

Public Bank and Sunway Property Signed MoU to Promote End-Financing for Green Development Projects
 
Public Bank Berhad (Public Bank) and Sunway Integrated Properties Sdn Bhd (Sunway Property) signed a Memorandum of Understanding (MoU) to collaborate on property financing for green and sustainable development projects.
 
Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said with this MoU, customers who purchase green-certified properties for both residential and non-residential properties developed by Sunway Property will get to enjoy Public Bank’s Special Sustainable Financing Package.
 
“Through this special package, customers will get to enjoy preferential pricing, fast lane approval and a financing option for customers who wish to purchase eco-friendly and energy efficient appliances, fixtures and fittings to further enhance the sustainability elements of their properties,” said Tan Sri Tay during the signing ceremony.
 
The MoU was signed with Sunway Property’s Managing Director, Ms. Sarena Cheah, in the presence of senior officers of both parties on 5 September 2022 at Menara Public Bank, Kuala Lumpur.

Tan Sri Tay said that this MoU is a momentous occasion aligned with Public Bank's sustainability mission to pursue Climate Action and contribute towards global climate solutions. "In line with Public Bank's commitment to be carbon neutral by the year 2030 and net-zero by 2050, the Bank will be mobilising RM40 billion in ESG-friendly financing by 2025, including making green building financing more accessible to customers", Tan Sri Tay added.
 
As the leading property financier in the country with a strong market share of 20.5% and 33.8% respectively in residential and non-residential properties financing as of June 2022, Tan Sri Tay said: “Public Bank is certainly well positioned to encourage green property ownership in the country.”
 
Expressing her support and enthusiasm of the MoU, Ms. Sarena Cheah in her speech said that the signing marks a milestone in both companies’ journey together towards a carbon-neutral Malaysia.
 
“We are confident that with this collaboration, we can synergise our strengths and deliver value to the larger community as well as drive the 2030 Agenda forward. We look forward to working with Public Bank to do well by doing good,” she concluded.
 
Sunway Property, in alignment with the Sunway Group, has set five ESG goals with 19 targets to fully support Malaysia’s transition to a low-carbon, climate-resilient economy by 2030, with sights set on net zero by 2050.
 
The first of these goals is to drive the transformation of Sunway Property’s developments into low-carbon, sustainable cities and aims to reduce emissions, achieve a set of resource efficiency targets, divert waste into landfills and certify industrial and construction sites amongst others, by 2030.
 
About Public Bank Berhad
 
Public Bank is the third largest banking group in Malaysia with total asset size of RM462.74 billion as at the end of 2021 and is the second largest company listed on Bursa Malaysia with total market capitalization of RM80.75 billion.
 
Public Bank has expanded its banking business in Malaysia and across the region, including Hong Kong, China, Cambodia, Vietnam, Laos and Sri Lanka. Today, the Public Bank Group has a wide network of 293 domestic branches and 150 overseas branches, with a combined staff force of over 19,000 people.
 
The Group has expanded the banking business to include a comprehensive suite of financial products and services, which comprises of personal banking, commercial banking, Islamic banking, investment banking, share broking, trustee services, nominee services, sale and management of unit trust funds as well as bancassurance and general insurance products.
 
Public Bank’s vision shapes its resilient business model of growth strategy within the retail banking space, which also steers Public Bank’s success story through the years, thus, giving rise to its outstanding performance among premier banks in Malaysia.
 
Public Bank Group is also a constituent of the FTSE4Good Index Series – FTSE4Good Bursa Malaysia Index, FTSE4Good ASEAN 5 and FTSE4Good Emerging Index, as assessed by global index provider FTSE Russell which measures the performance of companies demonstrating strong Environmental, Social, and Governance (ESG) practices.
 
About Sunway Property
 
Sunway Property is the property division of Sunway Group, Malaysia’s leading conglomerate with diversified interests that is listed on Bursa Malaysia and a constituent of the FTSE4Good Index Series. As a Master Community Developer, Sunway Property fulfils UNSDG 11 which is to make cities and human settlements inclusive, safe, resilient and sustainable. Sunway Property builds, owns, and operates integrated townships and developments of more than 5,000 acres across Malaysia, providing healthy, safe and well-connected ecosystems for communities to live, learn, work, play within. To date, it has an enviable portfolio with successful and internationally acclaimed properties in Malaysia and abroad, including China, Cambodia, Vietnam, and Singapore. For more information, visit www.sunwayproperty.com.
 
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From left, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer, Public Bank, Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer, Public Bank, Ms. Sarena Cheah, Managing Director, Sunway Property and Mr. Chong Sau Min, Senior Executive Director, Sunway Property during the MoU signing ceremony.
 
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Public Bank Group Posted Pre-Tax Profit Of RM4.02 Billion For The First Half of 2022 and Declared 8.0 Sen First Interim Dividend
FOR IMMEDIATE RELEASE
 
29 August 2022
 
Public Bank Group Posted Pre-Tax Profit Of RM4.02 Billion For The First Half of 2022 and Declared 8.0 Sen First Interim Dividend
 
For the first half of 2022, the Public Bank Group registered a pre-tax profit of RM4.02 billion, growing by 6.0% compared with the corresponding period in 2021. The profit growth was driven mainly by higher net interest income as well as lower loan impairment allowances. Net interest income grew 3.4% to RM4.32 billion, underpinned by healthy loan and deposit growth, as well as improved net interest margin.
 
Net profit attributable to shareholders was lower at RM2.82 billion for the first half year ended June 2022, compared with RM2.91 billion in the corresponding period in 2021 due to the impact of the one-off prosperity tax.
 
Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank said, “The transition to endemicity alongside the pick up in business activities and consumer sentiment have resulted in an improved business environment, further supporting the Group’s core banking business on loans and deposits.”
 
Tan Sri Teh added, “The Public Bank Group continues to manage its balance sheet and asset quality conscientiously to ensure adequate safeguards amid the ongoing economic challenges. For the first half of 2022, gross impaired loans ratio remained low at 0.3% despite the expiry of repayment assistance programmes under the PEMULIH scheme. The Group’s strong fundamentals and prudent management enabled the Group to continue sustain a resilient net return-on-equity of 12.0% and efficient cost-to-income ratio of 33.5%, which are well within the Group’s target for 2022.”
 
With that, Tan Sri Teh is pleased to announce that, “The Board of Directors is declaring a first interim dividend of 8.0 sen per share, which will result in a total dividend payout of RM1.55 billion, representing 55.2% of the Group’s net profit for the half year ended 30 June 2022. The first interim dividend will be paid on 23 September 2022 based on the dividend entitlement date of 14 September 2022.”
 
Loans and Deposits Businesses
 
During the first half of 2022, the Public Bank Group’s total loans recorded an annualised growth of 5.6% to RM368.0 billion, as compared with RM358.0 billion as at end-December 2021. Domestic loans grew at an annualised rate of 5.4% to RM343.6 billion, in line with the industry’s annualised growth rate of 5.4%. This was mainly attributed to the healthy growth of the Group’s key lending segments for residential properties and hire purchase financing.
 
“Despite the significant economic headwinds and intense competition in the market, the Group continued to sustain its domestic leading position in the residential properties, hire purchase financing and SME financing with market share of 20.5%, 30.5% and 20.5%  respectively,” Tan Sri Teh commented.
 
In terms of funding, the Group’s total customer deposits recorded an annualised growth of 4.1% to RM388.3 billion during the same period. Domestic deposits grew at an annualised rate of 3.6% to RM358.9 billion, as compared with the annualised industry growth of 4.0%. This was mainly attributed to the steady inflow of deposits, with the current and saving deposits growing by an annualised rate of 9.3%, and fixed deposits growing by an annualised rate of 6.0%.
 
Tan Sri Teh said, “The Public Bank Group’s liquidity and funding structure remained healthy with gross loan to fund and equity ratio of 81.0% as at 30 June 2022.”
 
 Non-Interest Income
 
For the first half of 2022, the Public Bank Group’s non-interest income was lower by 15.4% as compared with the previous corresponding period in 2021 due to the subdued market condition which affected the Group’s unit trust management and stockbroking businesses, as well as investment income. However, the Group’s unit trust business, undertaken by its wholly-owned subsidiary, Public Mutual remains the main contributor to the Group’s non-interest income.
 
Tan Sri Teh highlighted, “In the first half of 2022, Public Mutual recorded a pre-tax profit of RM392.2 million, contributing 9.7% to the Group’s profit. Despite the subdued market sentiment, Public Mutual continued to capture a large retail market share of 35.2%, with a total of 177 unit trust funds and total assets under management of RM92.1 billion.”
 
Cost Management
 
On the back of the resumption of more business activities, overhead expenses increased by 4.4% in the first half of 2022. The Group’s prudent cost management continued to sustain its cost-to-income ratio at an efficient level of 33.5%, significantly lower than the domestic banking industry’s cost-to-income ratio of 44.3%.
 
Tan Sri Teh highlighted, “Whilst the Public Bank Group continues to emphasise on effective cost management, the Group will continue to invest in digital transformation and staff development for long term productivity and cost efficiency.”
 
Asset Quality
 
As at the end of June 2022, the Public Bank Group’s gross impaired loans ratio remained low at 0.3%, well below the domestic banking industry’s average impaired loan ratio of 1.7%.
 
Tan Sri Teh further added, “Despite the resilient asset quality, the Group continued to maintain a prudent level of loan impairment allowance. As at the end of June 2022, the Group’s loan loss coverage ratio stood at 388.8%, significantly higher as compared with the banking industry’s loan loss coverage ratio of 108.5%. Including regulatory reserves, the Group’s loan loss coverage ratio was higher at 407.2%.”
 
Repayment Assistance Programme
 
Upon the expiry of PEMULIH repayment assistance programmes, about RM20.8 billion of the Public Bank Group’s domestic loans were still under the Group’s in-house repayment assistance as at the end of July 2022, accounting for 6% of the Group’s total domestic loans.
 
Tan Sri Teh said, “With the expiry of repayment assistance programmes under the PEMULIH scheme, the Group observed a stable repayment trend among its customers. Nevertheless, the Group is mindful of the ongoing challenges in the economy and will continue to provide assistance to customers who continue to face repayment difficulty.”
 
Overseas Operations
 
For the first half year ended June 2022, the Public Bank Group’s overseas operations contributed 6.5% to the Group’s profit. Public Financial Holdings Limited Group and Cambodian Public Bank (“Campu Bank”) continued to be the main contributors.
 
Tan Sri Teh said, “The Group’s Indochina operations grew at a faster pace, with Campu Bank and Public Bank Vietnam’s profit growing by 7.1% and 14.3% respectively as compared with the corresponding period last year. Moving forward, the Group will continue to step up its efforts to grow its Indochina business, riding on the good long term growth prospects and high potential of these emerging economies.”
 
Capital and Liquidity Position
 
As at the end of June 2022, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at a healthy level of 14.1%, 14.2% and 17.2% respectively, while liquidity coverage ratio remained healthy at 113.7%.
 
Tan Sri Teh reiterated, “Challenges facing the banking industry are intensifying. The Public Bank Group will remain focused on sustaining a healthy capital and liquidity position for its business to continue thriving even in times of challenges.”
 
Group’s Prospects
 
The Malaysian economy remains on a recovery path, supported by improving domestic demand and sustained export growth. The transition to endemic phase with almost fully relaxed COVID-19 restrictions have further strengthened the recovery.
 
However, significant headwinds remain, stemming from global geopolitical conflicts, resurgence of COVID-19 cases, rising inflationary pressure and global supply chain disruptions.
 
Tan Sri Teh commented, “As the headwinds remain visible, the Public Bank Group will continue to embrace the challenges with focus on prudent cost and risk management. The Group’s strong balance sheet, resilient asset quality and good corporate governance practices would continue to provide support in strengthening the Group’s business with greater cost efficiency and operational productivity.” 
 
“Against this backdrop, the Public Bank Group will continue to remain cautiously optimistic in striving its business growth and ensure its stakeholders’ interests are safeguarded at all times,” Tan Sri Teh concluded.
 
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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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