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

For Immediate Release

22 May 2013

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

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

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

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

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

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

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

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

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

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

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

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

For Immediate Release

20 May 2013

Public Bank And Resona Bank To Collaborate

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

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

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

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

Outline of Resona Bank, Ltd.

Name

Resona Bank, Ltd.

Head office address

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

Representative Director & President

Mr. Kazuhiro Higashi

Financial condition

(Resona Holdings, Inc.
Consolidated figures)

Financial Figures (as at March 2013)

 

JPY (mil)

MYR (mil)

Total Assets

43,110,629

1,435,155

Deposits

35,384,871

1,177,964

Loans

26,490,121

881,857

Shareholders’ Equity

2,189,304

72,882

Net Income

275,141

9,159

Capital Adequacy Ratio

14.67%

 

 

 

History

Founded in June 1918 as Osaka Nomura Bank Ltd.

Rating

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

Number of Branches

339 branches (As at 30 Sept 2012)

Network in Asia

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

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

Characteristics

  • Core business focus : Retail banking business

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

  • Resona Holdings Inc. listed on Tokyo Stock Exchange

(1 Malaysian Ringgit = 30.039 yen)

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

For Immediate Release

23 April 2013

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

Chairman’s Review

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to announce that, “The Public Bank Group remains resilient and recorded a pre-tax profit of RM1.3 billion and net profit of RM968.3 million for the first quarter of 2013. Against the profits for the corresponding quarter in the prior year, the Group’s pre-tax profit and net profit growth for the first quarter of 2013 were 3.1% and 4.1% respectively.”

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

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

Steady Growth Momentum in Loans and Deposits

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

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

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

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

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

The strong domestic deposit growth was mainly backed by the steady inflows of fixed deposits, low cost savings and current accounts, which grew by an annualised rate of 16.8%, 14.2% and 8.0% respectively.

Growth in Non-Interest Income

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

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

Prudent Cost Management

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

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

Uphold Asset Quality

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

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

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

Stable and Healthy Capital Position

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

Tan Sri Teh emphasised that, “We will continue to assess the Group’s capital requirements to ensure that it is well positioned to support the Group’s business growth strategies by balancing the need for higher capital retention in view of the requirements under the Basel III capital regime whilst maximising our shareholders’ return.”

Group’s Prospect

“Our strategies for the Public Bank Group remain unchanged. The Group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance. The Group will continue to leverage on its strong PB brand and its wide and efficient branch network as well as its excellent customer service to support long term sustainable growth.

Along with the expectation that the Malaysian economy will remain on a steady growth path of 5.0% to 6.0% in 2013, anchored by the continued resilience of domestic demand, and supported by gradual improvement externally, the Public Bank Group is expected to maintain its earnings momentum for the rest of 2013.” remarked Tan Sri Teh.
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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank
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Public Bank's 47th Annual General Meeting Held On 18 March 2013

For Immediate Release

18 March 2013

Public Bank's 47th Annual General Meeting Held On 18 March 2013

In conjunction with Public Bank’s 47th Annual General Meeting held on 18 March 2013, the Founder and Chairman of Public Bank, Tan Sri Dato’ Sri  Dr. Teh Hong Piow is pleased to present a review of the Public Bank Group’s performance in 2012.

Performance Review

Tan Sri Teh said, “The Public Bank Group achieved another new milestone in 2012 with a record pre-tax profit of RM5.10 billion, crossing the RM5 billion mark for the first time. The Group’s net profit for the full year amounted to RM3.87 billion.”

Tan Sri Teh highlighted that, “As a result of the retrospective application of MFRS 139, the comparative pre-tax profit and net profit for 2011 were restated upwards by  RM267 million and RM200 million respectively to RM4.88 billion and RM3.68 billion respectively. The Group’s pre-tax profit and net profit for 2012 were 4.6% and 5.0% higher than the restated corresponding profits in 2011. Excluding the effects of these restatements, the Group’s pre-tax profit and net profit for 2012 increased by 10.7% and 11.1% respectively.”  

Tan Sri Teh further added, “In 2012, the Public Bank Group’s gross loans grew by 11.3% to RM197.8 billion as at the end of 2012, with domestic loans growing at a faster pace of 12.5%. The loan growth was funded mainly by customer deposits which also reported a steady growth of 12.3%, with domestic customer deposits increasing by 13.0% in 2012.”

Tan Sri Teh highlighted, “As a result of the Group’s consistently strong performance, a second interim single-tier dividend of 30 sen was paid on 5 March 2013. Together with the first interim single-tier dividend of 20 sen which was paid in August 2012, the total dividend for 2012 was 50 sen.” The total dividend paid for 2012 amounted to RM1.75 billion and represented a total payout of 45.3% of the Group’s net profit for 2012.

Healthy Loan Growth

Lending to the retail banking segment remained the main strategic focus of the Public Bank Group with concentration in lending to small- and medium-sized enterprises (“SMEs”), financing of residential properties and purchase of passenger vehicles. As at the end of 2012, the Group’s retail loan portfolio collectively accounted for 85.9% of its total loans.

Tan Sri Teh said, “The Public Bank Group sustained its market leadership position in domestic lending for residential mortgages, commercial property financing and passenger vehicles financing with market shares of 19.1%, 33.7% and 26.4% respectively as at the end of 2012.”

Excellent Asset Quality

“The Public Bank Group continued to maintain its top ranking position in terms of asset quality amongst its domestic peers with gross impaired loan ratio of 0.7% as at the end of 2012, from 0.9% a year ago, which was approximately one-third that of the industry average of 2.0%.” commented Tan Sri Teh. The Group’s asset quality has consistently remained the best in the banking industry, a testimony to the Group’s prudent credit policies and effective credit assessment, approval, monitoring as well as prompt and timely recovery efforts.

“The Public Bank Group's loan loss coverage ratio stood at 126.0%, which was higher and more prudent than the banking industry's coverage ratio of 100.9% despite the write-back of excess collective assessment allowances due to the full adoption of MFRS 139.” Tan Sri Teh further added.

Steady Customer Deposit Growth

Tan Sri Teh said, “The Public Bank Group’s funding position remained robust, supported by its strong retail franchise and large domestic depositor base of over five million customers. Domestic customer deposits grew by 13.0%, higher than the domestic banking industry’s growth of 8.4%.” The strong domestic deposit growth was mainly due to healthy expansion of fixed deposits and low cost demand and savings deposits of 14.4%, 14.0% and 8.2% respectively, outperforming the banking industry’s growth rates of 8.8%, 12.1% and 7.0% respectively.

The Group’s net loan to deposit ratio remained stable and healthy at 87.1% as at the end of 2012.

International Operations

In 2012, the Public Bank Group’s overseas operations contributed 6.4% of the Group’s overall pre-tax profit. Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, reported a strong pre-tax profit growth of 22.2% from RM88.9 million in 2011 to RM108.5 million in 2012. Campu Bank achieved loans and deposit growth of 11.1% and 17.6% respectively in 2012 and continued to be one of the top three largest banks in Cambodia.

The Public Bank Group remains committed to expand its overseas business. As at the end of 2012, the Group has 122 overseas branches, with 83 branches in Hong Kong, 3 branches in Shenzhen in the People’s Republic of China, 24 branches in Cambodia, 7 branches in Vietnam, 4 branches in Laos, a branch in Sri Lanka and 3 representative offices in Shanghai, Shenyang and Taipei.

Sustaining Growth in Fee-based Income

The Public Bank Group continued to grow its fee-based income from unit trust, bancassurance and transactional banking services to further enhance the Group’s revenue stream.

“The Group’s unit trust management business, which is undertaken by its wholly-owned subsidiary, Public Mutual, achieved a pre-tax profit growth of 15.6% in 2012. Public Mutual remained the market leader in the private unit trust business with 100 funds under its management. Total net asset value of funds under management grew strongly by 22.0% from RM44.8 billion as at the end of 2011 to RM54.6 billion as at the end of 2012. Public Mutual captured 40.8% of the overall market share, with 60.1% and 53.2% market share in the equity and Islamic unit trust fund sectors respectively.” Tan Sri Teh commented.

On the bancassurance front, ING reached an agreement with AIA Group Ltd (“AIA”) for the sale of ING’s insurance operations in Malaysia to AIA on 11 October 2012. With the completion of the sale, the Public Bank Group’s strategic bancassurance tie-up with the enlarged AIA will continue and is expected to contribute positively to the Group’s long-term fee-based revenue.

Healthy Capital Position

The Public Bank Group’s capital position remained healthy, with its Tier 1 capital ratio and risk-weighted capital ratio standing at 10.8% and 14.1% respectively as at the end of 2012. The Group’s Common Equity Tier 1 capital ratio calculated based on Basel III requirements stood at 8.5% as at the end of 2012.

Tan Sri Teh further commented, “The Group is well positioned to meet the new regulatory requirements under Basel III. The Group will continue to assess its capital requirements to ensure that it is sufficient to support the Group’s business growth strategies by balancing the need for higher capital retention in view of the implementation of Basel III standards and maximising its shareholders’ return.”

Second Largest Listed Company by Market Capitalisation

Tan Sri Teh highlighted, “Since the end of 2008, Public Bank’s market capitalisation has increased by 85% to RM57.52 billion as at the end of 2012. Public Bank is currently the 2nd largest listed company on Bursa Malaysia and remains the largest non-government-linked company by market capitalisation.”

Superior Returns to Shareholders

The Public Bank Group continues to deliver superior returns to its shareholders, both over the medium-term and the long-term.

Tan Sri Teh commented, “If a shareholder of Public Bank had bought 1,000 shares in Public Bank when it was listed in 1967, and assuming the shareholder had subscribed for all rights issues to date and had not sold any of the Public Bank shares, he would have 135,398 Public Bank shares worth RM2.17 million based on the current share price of Public Bank (Local) shares of RM16.00. In addition, he would have received a total gross dividend of RM843,836. This translates into a total value of RM3.0 million representing remarkable compounded annual rate of return of 19.5% for each of the 45 years since 1967.”

“Over the medium-term of 5 years since the beginning 2008, an investor would have enjoyed a total return of 79.3% or an annual rate of return of 13.3% over the 5-year period."

Over the 12-month period from 1 March 2012 to 1 March 2013, a Public Bank shareholder would have enjoyed a total return of 21.3% taking into account the 50 sen dividend declared for 2012 and the share price appreciation during the period.” said Tan Sri Teh.

Outstanding KPIs

Tan Sri Teh commented, “Public Bank continued to be in the forefront amongst the 5 largest banking groups in Malaysia in terms of profitability, cost efficiency and asset quality with the highest net return on equity of 24.5% and lowest gross impaired loan ratio of 0.7% as well as lowest cost to income ratio of 30.5%.”

When benchmarked against leading banks in the Asia Pacific region, Public Bank also ranks amongst the top in terms of return on equity and cost efficiency.

Tan Sri Teh said, “For 2013, the Group targets to sustain net return on equity of more than 20% and cost to income ratio of below 32% whilst maintaining gross impaired loan ratio of below 1%.”

Corporate Responsibility

To further contribute to the environment’s sustainability, the Public Bank Group adopted the “green” concept in the construction of Public Mutual Berhad’s new head office building in Kuala Lumpur, which incorporates a host of green features in the design and layout of the building.

Other key corporate responsibilities initiatives undertaken included providing continued financial assistance for the setup of a dormitory to house families of needy patients undergoing treatment at Institute Jantung Negara, the continued support of the Universiti Tunku Abdul Rahman in its research studies in the field of banking and finance and the contribution of two mobile police stations to the Royal Malaysian Police.

Tan Sri Teh explained, “The Public Bank Group continued to support SMEs, which play a crucial role in the economic growth of the country by actively channelling low cost funds under various funds initiated by the Malaysian Government and Bank Negara Malaysia to assist SMEs and micro enterprises. With its strong and rising profitability, the Public Bank Group is also a major contributor to the fiscal revenue of the country with tax payments totalling RM4.22 billion for the past 5 years.”

An Award Winning Bank

Tan Sri Teh highlighted that, “In 2012, the Public Bank Group was recognised with a total of 36 awards and recognition of excellence from various international organisations and publications.” The awards received include:

  • Best Retail Bank in Malaysia by The Asian Banker (9th time)
  • Strongest Bank in Malaysia by The Asian Banker (1st time)
  • Best Bank in Malaysia by FinanceAsia (14th time)
  • Best Asian Bank by FinanceAsia (4th time)
  • Best Bank in Malaysia by Alpha Southeast Asia (6th time)
  • Domestic Retail Bank of the Year - Malaysia by Asian Banking and Finance (4th time)
  • Best Banking Group in Malaysia by World Finance (4th time)
  • Best Domestic Bank in Malaysia by The Asset (11th time)

Tan Sri Teh   further added, “For the tenth consecutive year, Public Mutual remained the most awarded fund manager in The Edge-Lipper Malaysia Fund Awards with a total of 14 awards won in 2013."

Some of the other awards, which Public Mutual received in 2012, are:

  • 2 awards at the Asia Asset Management Awards 2011
  • 2 awards at the 2012 Morningstar Malaysia Fund Awards
  • Best Asian Equity Fund in the 10-year category at the Failaka Islamic Fund Awards 2011
  • The Asset Triple A Islamic Finance Awards 2012 for the Best Islamic Retail Asset Management House in Malaysia
  • Reader’s Digest Trusted Brand 2012 Platinum Award for the Investment Fund Company category in Malaysia (3rd time)
  • The BrandLaureate Award 2011-2012 for Best Brands in the Financial Services - Unit Trusts Category (6th time)

Corporate Governance Awards

Tan Sri Teh said, “Public Bank Group’s pursuit of excellence in good corporate governance and its long entrenched culture of transparency and integrity continued to be recognised with the receipt of awards from respected international publications.”

Public Bank was awarded the Corporate Governance Asia’s 2nd Asian Excellence Recognition Awards 2012 for Best Corporate Social Responsibility, Best Investor Relations by a Malaysian company and the Corporate Governance Asia Recognition Award 2012.

Public Bank was also awarded the Alpha Southeast Asia’s Institutional Investor Corporate Awards 2012 for Strongest Adherence to Corporate Governance.

Outlook

On the outlook for 2013, Tan Sri Teh viewed, “We are optimistic that the domestic economy, in which the Group largely operates, will continue to be stable and supportive of growth that will mainly be spurred by domestic demands. However, intense competition for both loans and deposits market share is expected to continue to erode net interest margin.”

On the strategic directions for the Public Bank Group, Tan Sri Teh remarked that, “The Public Bank Group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance to support long term sustainable growth. The Group will continue to leverage on its strong PB brand and its wide and efficient branch network as well as its excellent customer service to deliver continuous revenue growth. The Group is expected to maintain its earnings momentum and record satisfactory performance in 2013.”

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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank
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Public Bank Launched 'PB FD Fortune' Campaign

For Immediate Release

19 February 2013

Public Bank Launched 'PB FD Fortune' Campaign

Public Bank has launched a new fixed deposit (FD) campaign dubbed as ‘PB FD Fortune’ Campaign on 1 January 2013 to further grow our customers’ fortune for the Chinese New Year.  This campaign which is available at all branches nationwide, offers higher fixed deposit interest rate.

 

This campaign is open to individual customers for both personal and joint accounts.  With a minimum placement amount of RM10,000, customers will be eligible to participate in the campaign and enjoy the campaign benefits.  Of the total placement amount, 80% will be deposited into a 6-Month PLUS Fixed Deposit to enjoy the special interest rates of up to 4.88% p.a. while placing the balance 20% into the PLUS Savings Account.

The special interest rates offered under this campaign is for a limited period only i.e. until 31 March 2013 or upon reaching the overall target limit, whichever is earlier.  The maximum amount of placement per customer is limited at RM500,000 so that more customers will be able to enjoy the special interest rates.

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

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Public Bank Group Surpassed RM5 Billion Mark In Pre-Tax Profit For 2012 And Declares 30% Second Interim Dividend

For Immediate Release

6 February 2013

Public Bank Group Surpassed RM5 Billion Mark In Pre-Tax Profit For 2012 And Declares 30% Second Interim Dividend

Chairman’s Review

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to announce that “The Public Bank Group achieved yet another milestone financial results in 2012 with a record pre-tax profit of RM5.10 billion, surpassing the RM5 billion mark for the first time; and net profit attributable to shareholders of RM3.87 billion.”

Tan Sri Teh highlighted that, “As a result of the retrospective application of MFRS 139, the comparative pre-tax profit and net profit for 2011 were restated upwards by RM267 million and RM200 million to RM4.88 billion and RM3.68 billion respectively. The Group’s pre-tax profit and net profit for 2012 were 4.6% and 5.0% higher than the restated corresponding profits in the prior year. However, excluding the effects of such restatement, the Group’s pre-tax profit and net profit for 2012 increased by 10.7% and 11.1% respectively.”

The Group’s balance sheet position remained strong and continued to be supportive of loans growth. Tan Sri Teh said that “Maintaining upward momentum, the Group’s gross loans grew by 11.3% during the year to RM198 billion as at the end of 2012, with domestic loans growing at a faster pace of 12.5% over the same period. The loan growth were funded mainly by customer deposits which also recorded a steady growth of 12.3%, with domestic customer deposits increasing by 13.0% in 2012, resulting in a stable and healthy loan-to-deposit ratio of 87.1% as at the end of 2012.

Despite the strong loan growth in 2012, the Group’s loan impairment allowance declined by 14.5% with an improved gross impaired loan ratio of 0.7%. The Group’s strong asset quality was attributed to its consistent adoption of stringent credit policies and effectiveness in credit assessment, approval, monitoring and recovery processes.”

Tan Sri Teh reiterated that, “The Public Bank Group continued to be in the forefront amongst its banking peers in Malaysia in terms of recording the highest net return on equity of 24.5% and maintaining the lowest gross impaired loan ratio of 0.7% as well as lowest cost-to-income ratio of 30.5%.”

Tan Sri Teh further added that “In view of the Group’s consistently strong performance in 2012, we are pleased to announce that the Board of Directors has declared a second interim single-tier dividend of 30 sen. Together with the first interim single-tier dividend of 20 sen which was paid in August 2012, the total dividend for 2012 is 50 sen.” The total dividend paid and payable for 2012 amounts to RM1.75 billion and represents a total payout of 45.3% of the Group’s net profit for 2012.

Sustaining Organic Growth in Loans and Customer Deposits

The Public Bank Group sustained its strong loan growth momentum of 11.3% in 2012. In particular, the domestic loans grew at a stronger pace of 12.5% compared to the domestic banking industry’s growth of 10.4%.

Lending to the retail banking segment remained the main strategic focus of the Public Bank Group with concentration in lending to small- and medium-sized enterprises, financing of residential properties and purchase of passenger vehicles. As at the end of 2012, the Group’s retail loan portfolio collectively accounted for 85.9% of its total loans.

Tan Sri Teh commented that, “With the continuous support of our valued customers, the Public Bank Group not only managed to sustain its market leadership position in domestic lending for residential mortgages, commercial property financing and passenger vehicles financing, but also recorded increase in market share for these key lending segments to 19.1%, 33.7% and 26.4% respectively. The Group’s lending to small- and medium-sized enterprises also recorded commendable growth of 22.2% in 2012.”

“The Public Bank Group’s funding position remained robust, supported by its strong retail franchise and large domestic depositor base of over five million customers. Domestic customer deposits grew by 13.0%, higher than the domestic banking industry’s growth of 8.4%.” said Tan Sri Teh. The strong domestic deposit growth was mainly attributed to steady inflows of fixed deposits and low cost savings and current accounts (“CASA”), which grew by 14.4% and 11.6% respectively, outperforming the Malaysian banking industry’s 8.8% growth in fixed deposits and 10.3% growth in CASA.

In order to create greater convenience for its large customer base as well as to tap on new business opportunities, the Group continued to expand its branch network at strategic locations. In 2012, the Group opened 3 new branches and increased its domestic branch network to 255 currently.

Maintaining Growth in Fee-based Income

The Public Bank Group continued to grow its fee-based income, targeting fee income from unit trust, bancassurance and transactional banking services to further enhance the Group’s revenue stream.

“The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to demonstrate resilient performance with a pre-tax profit growth of 15.6% in 2012. Public Mutual remained as the market leader in the private unit trust business with 100 funds and total net asset value of RM54.6 billion under its management. Public Mutual captured 40.8% of the overall market share as at the end of the year, with 60.1% and 53.2% market share in the equity and Islamic unit trust fund sectors respectively. In November 2012, Public Mutual launched six private retirement scheme (PRS) funds comprising three conventional series and three Shariah-based series as one of the approved pioneer providers for the first set of the PRS in Malaysia. This signified another milestone achievement for the Group to participate in an inaugural national initiative.Tan Sri Teh commented.

Practising cost discipline

Tan Sri Teh highlighted that, “The Public Bank Group remained as the most cost-efficient bank in Malaysia with its cost-to-income ratio of 30.5% in 2012 as compared to the banking industry’s average cost-to-income ratio of 46.0%.

The Public Bank Group places significant emphasis on cost discipline, particularly in this challenging and competitive operating environment. By embracing its belief that cost management can be achieved through efficiency, the Group will continuously review and upgrade the skills of its staff and improve its business processes to further enhance its productivity.”

Upholding Asset Quality

“The Public Bank Group continued to uphold its strong asset quality fortress with further improvement in its gross impaired loan ratio from 0.9% as at beginning of the year to 0.7% as at the end of 2012, significantly lower as compared to the Malaysian banking industry’s gross impaired loan ratio of 2.0%.

The Group takes pride in being the Malaysian banking group with the lowest impaired loan ratio, despite the consistent double-digit growth in its loan portfolio year after year.” commented Tan Sri Teh.

The strong asset quality is a result of the Group’s consistency in embracing a combination of both preventive and proactive measures in its lending activities, such as setting strict and prudent credit policies, advocating strong discipline and “know your customer” culture in the credit assessment and approval process, and ensuring timely collection, efficient restructuring and rescheduling processes, as well as rehabilitation of impaired loans.

New impaired loan formation against average total gross loans remained low at 0.35% in 2012 and the net credit charge improved from 0.20% in 2011 to 0.15% in 2012.

Tan Sri Teh added that, “The Public Bank Group's loan loss coverage ratio stood at 126.0%, which was higher and more prudent than the banking industry's coverage ratio of 100.9% despite the write-back of excess collective assessment allowances due to the full adoption of MFRS 139.”

Overseas Operations

For the year ended 2012, the Public Bank Group’s overseas operations contributed 6.4% of the Group’s overall pre-tax profit. Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, reported a strong growth in pre-tax profit of 22.2% from RM88.9 million in 2011 to RM108.5 million in 2012 and remains as one of the top three largest banks in Cambodia.

Ensuring Healthy Capital Position

The Public Bank Group’s capital position remained healthy, with its Tier 1 capital ratio and risk-weighted capital ratio standing at 10.8% and 14.1% respectively as at the end of 2012 despite the redemption of its USD400 million Subordinated Notes in the first half of 2012.

“We will continue to assess the Group’s capital requirements to ensure that it is well positioned to support the Group’s business growth strategies by balancing the need for higher capital retention in view of the implementation of Basel III standards and maximising its shareholders’ return.” Tan Sri Teh emphasised.

Group’s Prospects

“The recovery of the global economy remained slow with the major Asian economies also showing signs of growth moderations. While the Malaysian economy is not insulated from the impact of unfavourable external conditions, we are optimistic that the domestic economy, in which the Group largely operates, will continue to be stable and supportive of growth that will predominantly be spurred by domestic demands. On the Malaysian banking industry landscape, intense competition for both loans and deposits market share is expected to continue to erode net interest margin.”  viewed Tan Sri Teh.

On the strategic directions for the Public Bank Group, Tan Sri Teh remarked that, “Our strategies remain unchanged. The Public Bank Group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance to support long term sustainable growth. The Group will continue to leverage on its strong PB brand and its wide and efficient branch network as well as its excellent customer service to deliver continuous revenue growth.

The Group is expected to maintain its earnings momentum and record satisfactory performance in 2013.”

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

8 January 2013

"Start Your Year with PB Golden Fortune" - Public Bank Offers 3 Golden Plans

In conjunction with the forthcoming Chinese New Year Celebration, Public Bank is pleased to announce the launch of the "PB Golden Fortune" Campaign to reward our loyal customers.

The "PB Golden Fortune" Campaign is open to all new and existing Public Bank customers from 1 January 2013 to 30 April 2013. It offers 3 Golden Plans namely 'Unit Trust (UT) Golden Plan', 'Gold Investment Account (GIA) Golden Plan' and 'Foreign Currency Fixed Deposit (FCYFD) Golden Plan'.

This campaign offers 2 plans under each Golden Plan. Customer will get one unit or two units of complimentary 24K gold-plated gift(s) via Golden Plan 1 and Golden Plan 2 respectively.

There is a minimum investment amount for each Golden Plan purchased and customers are also required to place a minimum of RM1,000 new deposit into their existing or new Current Account or Savings Account in order to be entitled to the gold-plated gifts.

The complimentary gifts given away in this campaign consist of 2 exquisite limited edition 24K gold-plated gifts namely the 'Golden Fortune Fish' and 'Golden Fortune Tree'. These gifts are carefully selected where each gift represents a magnificent piece of gold craft that symbolizes longevity and prosperity. The gifts are limited and available while stock lasts.

This campaign is designed for customers who are looking for a wider range of investment products in achieving their financial goal especially for those who are preparing for their children's education or planning their retirement needs. Public Bank offers a wide range of UT funds to cater to various customers' risk appetite in order to achieve financial goals through proper financial planning. In addition, gold or GIA has remained a popular investment tool as a hedge against inflation and safeguard wealth. FCYFD assists customers who intend to invest abroad or intend to send their children for overseas education by minimizing the risk of currency fluctuations.

At Public Bank, we are committed to help our customers to stretch their ringgit by providing various investment choices to our customers. By participating in this campaign, customers are not just investing to grow their money, but are also being rewarded with the exquisite limited edition 24K gold-plated gifts.

Riding on the festive mood of the upcoming auspicious Chinese New Year 2013, just select the Golden Plan of your choice, get the 24K gold-plated gift(s) and reap the rewards as your money works for you!

To find out more about the 'PB Golden Fortune' Campaign, customers are invited to meet our customer representatives at any of our branches, log on to Public Bank's website at www.pbebank.com or call free phone at 1-800-22-9999 during working hours. Terms and conditions apply.

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Public Bank Group Recorded Pre-Tax Profit of RM3.80 Billion For the First Nine Months of 2012

For Immediate Release

18 October 2012

Public Bank Group Recorded Pre-Tax Profit of RM3.80 Billion For the First Nine Months of 2012

Chairman's Review

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “The Public Bank Group recorded another commendable set of results in the first nine months of 2012 with pre-tax profit of RM3.80 billion and net profit of RM2.88 billion respectively.”

Tan Sri Teh highlighted that, “As a result of the retrospective application of MFRS 139, the comparative pre-tax profit and net profit for the corresponding first nine months of 2011 were restated upwards by RM219 million and RM164 million to RM3.67 billion and RM2.77 billion respectively. Hence, the Group’s pre-tax profit and net profit for the first nine months of 2012 were 3.6% and 3.8% higher than the restated corresponding period in 2011. Excluding the effects of such restatement, the Group’s pre-tax profit and net profit for the same period increased by 10.2% and 10.4% respectively.

On quarter-to-quarter comparison, the Group’s pre-tax profit for the third quarter of 2012 represents a 5.8% growth over the preceding quarter ended 30 June 2012.”

The Group’s balance sheet position remained strong.Tan Sri Teh said that “The Group’s gross loans grew at an annualised rate of 11.3% in the first nine months of the year to RM193 billion as at the end of September 2012, with domestic loans growing at 12.8% on annualised basis. Over the same period, the Group also recorded a steady growth of customer deposits at an annualised rate of 13.2%, with domestic customer deposits increasing by 14.0%. As a result, the Group’s loan-to-deposit ratio remained stable and healthy at 86.8%.

Despite the strong loan growth in the first nine months of 2012, the Public Bank Group’s loan impairment allowance decreased by 11.6%, with low gross impaired loan ratio of 0.7%. This was directly attributed to the strong asset quality as a result of the Group’s prudency in setting credit policies and effectiveness in credit assessment, approval, monitoring and recovery processes.”

Tan Sri Teh added that, “The Public Bank Group continued to be in the forefront amongst its banking peers in Malaysia in terms of recording the highest net return on equity of 24.2% and maintaining the lowest gross impaired loan ratio of 0.7% and cost-to-income ratio of 30.8%.”

Continuous Stable Momentum in Loan and Deposit Growth

Lending to the retail sector remained the main focus of the Public Bank Group with concentration in lending to small and mid-market commercial enterprises and loans for the financing of residential properties and purchase of passenger vehicles. As at 30 September 2012, the Group’s retail loan portfolio made up 85.7% of its total loans.

Tan Sri Teh shared that, “With the continuous support of our valued customers, the Public Bank Group continued to command market leadership in domestic lending for residential mortgages, commercial property financing and passenger vehicles financing with market shares of 18.8%, 33.4% and 26.3% respectively.” The Group’s lending to small and medium-sized enterprises also recorded commendable growth with an annualised growth rate of 23.6% in the first nine months of 2012.

“The Public Bank Group’s funding position remained robust, supported by its strong retail franchise and large domestic depositor base of over 4.8 million customers. Domestic customer deposits grew at an annualised rate of 14.0% compared to the domestic banking industry’s annualised growth of 8.8%.” said Tan Sri Teh. The strong domestic deposit growth was mainly attributed to steady inflows of fixed deposits and low cost savings and current accounts (“CASA”), which grew at annualised growth rates of 15.1% and 10.2% respectively, outperforming the Malaysian banking industry’s annualised 7.7% growth in fixed deposits and annualised 6.5% growth in CASA.

Growth in Fee-based Income

The Public Bank Group continued to grow its fee-based income, targeting fee income from unit trust, bancasurrance and transactional banking services to further enhance the Group’s financial performance.

“The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual, continued to show commendable performance with a pre-tax profit growth of 13.0% in the first nine months of 2012. Public Mutual remained as market leader in the private unit trust business with 94 funds and total net asset value of RM50 billion under its management. Public Mutual captured 40.4% of the overall market share as at the end of August 2012, with 60.6% and 52.6% market share in the equity and Islamic unit trust fund sectors respectively.” Tan Sri Teh said.

Disciplined Cost Management to Ensure Sustainability

Tan Sri Teh said that, “The Public Bank Group continued to review and improve its business processes to further enhance efficiency and productivity. The discipline of cost management is even more pertinent to ensure cost sustainability in this challenging and competitive operating environment.

Compared to the banking industry’s average cost-to-income ratio of 46.0%, the Group remained as the most cost-efficient bank in Malaysia with its significantly lower cost-to-income ratio of 30.8%.”

Strong Asset Quality

“The Public Bank Group continued to uphold its strong asset quality record with further improvement in its gross impaired loan ratio from 0.9% as at beginning of the year to 0.7% as at the end of September 2012. This is a commendable achievement as the Group’s ratio is substantially lower than the Malaysian banking industry’s gross impaired loan ratio of 2.2%.” said Tan Sri Teh. The strong asset quality is a result of the Group consistently embracing a combination of both preventive and proactive fundamental measures in its lending activities, such as setting strict and prudent credit policies, emphasising strong discipline and “know your customer” culture in the credit assessment and approval process, and ensuring timely collection, efficient restructuring and rescheduling processes as well as rehabilitation of impaired loans.

Tan Sri Teh added that, “The Public Bank Group's loan loss coverage ratio stood at 124.5%, which was higher and more prudent than the banking industry's coverage ratio of 101.7% despite the write-back of excess collective assessment allowances due to the full adoption of MFRS 139.”

Overseas Operations

For the first nine months of 2012, the Public Bank Group’s overseas operations contributed 6.2% of the Group’s overall pre-tax profit. Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank reported a strong growth in pre-tax profit of 35.7% to USD28.0 million for the first nine months ended September 2012 as compared to USD20.6 million in the last corresponding period. Campu Bank retains its position as one of the top three largest banks in Cambodia.

Capital Position Remains Healthy

“Despite the redemption of its USD400 million Subordinated Notes in the first half of 2012, the Public Bank Group’s capital position remained healthy, with its Tier 1 capital ratio and risk-weighted capital ratio standing at 10.2% and 13.5% respectively as at the end of September 2012.

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

Group’s Prospects

“The outlook of the Malaysian economy, in which the Group largely operates, continues to be stable and supportive of growth despite headwinds from the vulnerable external economic conditions, and the rapidly changing regulatory landscape for banks. Intense competition for both loans and deposits market share will continue to erode net interest margin.”  viewed Tan Sri Teh.

Tan Sri Teh remarked that, “Our strategies remain unchanged. The Public Bank Group will continue to focus on its core retail banking and financing business as well as upholding strong corporate governance to support long term sustainable growth. The Group will continue to leverage on its strong PB branding and its wide and efficient branch network; and our excellent customer service to deliver continuous revenue growth.

For the fourth quarter of 2012, the Group is expected to maintain its earnings momentum and record satisfactory performance.”

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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank
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Public Bank Donates Two Mobile Police Stations Worth RM328,000

For Immediate Release

12 October 2012

Public Bank Donates Two Mobile Police Stations Worth RM328,000

Public Bank donates two mobile police stations to the Royal Malaysian Police worth RM328,000 to assist in increasing police presence in identified areas under its Crime Awareness Programme.

According to Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow, “Public Bank has been most supportive of the various crime prevention initiatives undertaken by Royal Malaysian Police. I hope that our contribution of the two units of the mobile police stations will facilitate the Royal Malaysian Police’s efforts in enhancing the safety of our communities and promote a better living environment.”

These two mobile police stations which are Toyota Hiace Window Vans fully-equipped with the required accessories were handed over to the Deputy Commissioner of Police, Dato’ Wira Ayub bin Hj. Yaakob, Chairman of the National Key Reduction Area Secretariat  by En. A. Wahab bin A. Raman, Director of Security Division on behalf of Tan Sri Chairman at a ceremony held on Wednesday, 10 October 2012 at the Federal Police Headquarters, Bukit Aman, Kuala Lumpur.

In his speech, Dato’ Wira Ayub said, “The Royal Malaysian Police thank Tan Sri Teh Hong Piow and welcomes the initiatives by Public Bank to work together with the police force to provide security infrastructure for the country. The two mobile police stations will add to our current facilities thus helping us to beef up our effort in providing safety, peace and security to our society.

He added, “Royal Malaysian Police look forward to further collaboration with Public Bank in future police initiatives for the well-being of the rakyat.”

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En. A. Wahab A. Raman, Director of Security Division presenting the mock key to the Deputy Commissioner of Police, Dato’ Wira Ayub Bin Hj. Yaakob, Chairman of the National Key Reduction Area Secretariat.  In the background are the two mobile police stations donated by Public Bank.
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Budget 2013

For Immediate Release

28 September 2012

Budget 2013

Amidst the numerous headwinds from a weak external sector and the need to further fuel the domestic economic growth, the Honourable Prime Minister and Minister of Finance has unveiled a well-crafted 2013 Budget, balancing between providing various stimulus for economic growth and managing Federal Government finances with fiscal discipline.

We welcome the Government’s commitment in ensuring that the fiscal deficit continues to decline and the Federal Government debt to be managed at a sustainable level.  This is demonstrated from the gradual reduction in the fiscal deficit from 4.8% of GDP in 2011, to 4.5% in 2012 and the budgeted 4.0% in 2013, with the aim for further decline to 3.0% by 2015.  The effort of fiscal consolidation is also reflected in the higher revenue of the Federal Government in 2012, which is 11% higher than its original budget.  With the Government’s affirmation of measures in ensuring all Government’s procurement and purchases are based on value-for-money principle, transition from bulk subsidies to targeted subsidies and a review of the Malaysia’s taxation system to better reflect the household’s financial position, we are confident that the soundness of our country’s public finance will be further enhanced.

The 2013 Budget continues to support Malaysia’s transformation towards a high income nation. The Budget remains committed to promote a conducive environment for investment. The Government has provided measures to stimulate a broad-based economic growth, with incentives and assistance to be provided to various key economic sectors.  It is also laudable that the Government continues to emphasise on education and training, raising productivity and inculcating innovation which are key thrusts to achieving greater wealth for Malaysia.

With prudence in fiscal spending being embedded, the 2013 Budget also provides various measures and incentives to address the pressure of rising cost of living aiming at enhancing the well-being of the rakyat, in particular housing for rakyat.  The banking sector will continue to play its role in supporting the process of household formation and ownership of affordable housing by rakyat.

We would like to congratulate the Honourable Prime Minister and Minister of Finance for the comprehensive budget which will further strengthen the Malaysian economy, while ensuring that the well-being of the rakyat is not compromised. We are confident that the 2013 Budget will bring Malaysia closer towards transforming the country into a developed nation.

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