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Tan Sri Teh Hong Piow Declared As ‘The Greatest Malaysian Banker Of All Time’

For Immediate Release

13 March 2018

Tan Sri Teh Hong Piow Declared As ‘The Greatest Malaysian Banker Of All Time’
 

Public Bank’s Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow has been awarded the ‘The Greatest Malaysian Banker of All Time’ by the Asia Pacific Brands Foundation on 10 March 2018, during the Public Bank Management Seminar Dinner held at the Mines International Exhibition and Convention Centre.
 
Dr. KK Johan, President of the BrandLaureate, presented the award to Tan Sri Teh in the presence of more than 4,000 staff of the Public Bank Group.
 
Dr. KK Johan in his citation speech said, “For the past 50 years, there is no other banker extraordinaire that has steadfastly grown the bank to record breaking feats, positive growth year after year and for 2017, achieved a net profit to RM5.47 billion reached through organic growth and brilliant strategic moves”.
 
“The brilliant mind of Tan Sri Teh Hong Piow has no match and his astounding knowledge of the banking industry puts him ahead of the competition. Without Tan Sri Teh Hong Piow and Public Bank, I daresay that Malaysia’s banking industry and the country’s economy would not be what it is today. He defines banking leadership and with his principles and philosophy has set standards of good banking practices, which is emulated and respected by his peers”, added Dr. KK Johan.

Dr. KK Johan continued, “The APBF has specially crafted a trophy to present to you tonight – a trophy that symbolises your weight in the industry as a banking giant and a trophy that is very elaborate, specially crafted and designed like no other trophies designed before.  A masterpiece only meant for the Great Master Banker. No one has received it before and is worthy of it except the honourable Founder Chairman of Public Bank, Tan Sri Dato’ Sri Teh Hong Piow. This award is meant only for the greatest and the best!”.
 
In applauding Tan Sri Chairman’s latest award, Public Bank Managing Director Tan Sri Dato’ Sri Tay Ah Lek said, “On behalf of the Board of Directors, Management and staff of Public Bank Group, I wish to express our heartiest and heartfelt congratulations to Tan Sri Teh Hong Piow for being bestowed this BrandLaureate ‘The Greatest Malaysian Banker of All Time’ Award tonight”.
 
He said, “Tan Sri Chairman is the mark of an ideal leader whose hopes and dreams for Public Bank knows no bounds. The exemplary leadership of Tan Sri Chairman as ‘The Greatest Malaysian Banker of All Time’ has not only propelled Public Bank to the forefront of the Malaysian financial landscape but has also gained international respect and acclaim”.
 
“Tan Sri Chairman has contextual intelligence, a profound ability to understand the spirit of the times and harness the opportunities they present to create a successful organisation. These are the attributes that have enabled Public Bank to make stellar returns and create significant value for stakeholders over the years”.
 
According to Tan Sri Tay, “Tan Sri Chairman’s compassion towards his staff and excellence in all his endeavours, call immediately for our total respect and warmest love.  Tan Sri Chairman, you are an inspiration not only to your Public Bank family, but also to generations of bankers and a continuing source of enlightenment”.
 
With this latest award, Tan Sri Teh has received a total of 45 personal to holder awards in recognition of his exemplary commitment to excellence and lifetime dedication to the banking industry.

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 Dr. KK Johan presenting the award trophy to Tan Sri Dato' Sri Dr. Teh Hong Piow.

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Public Bank Group Achieved Record Pre-Tax Profit of RM7.12 Billion For 2017 And Declared Second Interim Dividend of 34 SEN

For Immediate Release

22 February 2018

PUBLIC BANK GROUP ACHIEVED RECORD PRE-TAX PROFIT OF RM7.12 BILLION FOR 2017 AND DECLARED SECOND INTERIM DIVIDEND OF 34 SEN
 
Chairman’s Review
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow announced today that, “The Public Bank Group recorded yet another milestone financial results in 2017 with pre-tax profit of RM7.12 billion, surpassing the RM7.0 billion mark for the first time. This represents 8.6% growth from the pre-tax profit of RM6.55 billion achieved a year ago. Net profit attributable to shareholders grew by 5.1% to RM5.47 billion, translating to a net return on equity of 15.8% for 2017.”
 
The Malaysian economy grew stronger than expected in 2017. The continued expansion in domestic demand, coupled with the improvement in external environment continued to provide growth opportunities for the banking industry. Against the macro backdrop, the Public Bank Group continued to progress and deliver a favourable set of financial results supported by a commendable 7.9% total net income growth. This was attributed to steady loan growth coupled with continuous drive on fee-based revenue and effective cost management. 
 
Tan Sri Teh further added that, “With the resilient performance in 2017, the Public Bank Group continued to achieve a high net return on equity of 15.8% whilst maintaining its low gross impaired loan ratio of 0.5% and an efficient cost-to-income ratio of 31.9%. The results are a validation of the Group’s effective organic growth strategies and sustainable business model. We have benefited from our disciplined execution of our growth strategies whilst preserving prudent risk management practices to ensure sustainable and stable returns.”
 
In view of the Public Bank Group’s favourable performance in 2017, Tan Sri Teh announced that, “The Board of Directors is pleased to declare a second interim dividend of 34 sen, taking full year dividend for 2017 to 61 sen.” The total dividend paid and payable for 2017 amounted to RM2.36 billion and represents a total payout of 43.1% of the Group’s net profit for 2017.
 
Steady Growth in Loans and Deposits
 
For the financial year ended 31 December 2017, the Public Bank Group sustained a steady loan growth momentum at a rate of 3.6%. Domestic lending business grew by 4.6% over the same period, outpacing the domestic banking industry’s loan growth rate of 4.1%.
 
The Public Bank Group’s loan growth was mainly attributed to the lending growth in its retail consumer and commercial banking segment, comprising financing for the purchase of residential properties and extension of credits to small and medium enterprises.
 
In tandem with the steady loan growth, the Group’s total customer deposits grew by 3.0%, mainly attributed to the steady inflow of core deposit comprising fixed deposits, low-cost savings and current accounts, which grew by 4.5%.
 
“The Group’s robust funding position was mainly supported by its strong retail franchise and large domestic depositor base of over six million customers who continue to place their trust and confidence in the Group in safeguarding their funds,” remarked Tan Sri Teh.
 
With the steady inflow of customer deposits, the Public Bank Group remains well funded with a healthy gross loan to fund and equity ratio of 80.7% as at the end of 2017.
 
Sustaining Growth in Fee-Based Revenue
 
Tan Sri Teh highlighted that, “Growing fee-based revenue remains as a key strategic focus of the Public Bank Group.” Arising from the Group’s initiative to drive growth of its fee-based revenue in order to sustain better return for its shareholders, the Group’s non-interest income increased by 11.3% in 2017 as compared to 2016. This was mainly contributed by higher income from its unit trust business, higher investment income as well as increased contribution from its stockbroking and bancassurance business.
 
The Public Bank Group’s unit trust management business undertaken by its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the non-interest income growth of the Group. For the year 2017, fee income from unit trust business made up 39% of the Group’s total non-interest income. As at the end of 2017, Public Mutual manages 141 funds with a total net asset value of RM81.4 billion and has remained as the market leader with an overall retail market share of 40.9% in the private unit trust business. For the financial year ended 31 December 2017, Public Mutual reported an impressive 15.4% growth in pre-tax profit to RM661 million.
 
Sustained High Productivity and Cost Efficiency
 
The Public Bank Group continued to be the most efficient banking group in Malaysia with its best cost-to-income ratio of 31.9% as compared to the banking industry’s average cost-to-income ratio of 45.8%.
 
Tan Sri Teh added that, “The Group is committed to continue with prudent cost discipline at all times and to consistently pursue high productivity and cost efficiency in all aspects of its operations, prioritising the investment and deployment of resources and technology to where they are most effective without compromising on compliance and service quality.”
 
Superior Asset Quality
 
Tan Sri Teh highlighted that, “Amidst the prevailing economic uncertainties and challenges, the Public Bank Group continued to demonstrate resilience in its asset quality.”

As at the end of 2017, the Public Bank Group’s impaired loan ratio remained low at 0.5%, significantly lower than the industry ratio of 1.5%. The Group’s loan loss coverage ratio of 95.5% as at the end of 2017 continued to be better as compared to the Malaysian banking industry’s ratio of 82.9%. Including the RM2.4 billion regulatory reserves set aside, the Group’s loan loss coverage ratio would be 256.5%, which provides a strong buffer for the Group’s adoption of MFRS 9 effective 1 January 2018.
 
Tan Sri Teh further added, “To continue achieving strong asset quality while maintaining steady growth in its lending business, the Group will continue with its present prudent approach and practices in managing the quality of its loan portfolio right from origination to the recovery of impaired loans.
 
Overseas Operations
 
The pre-tax profit of the Public Bank Group’s overseas operations grew by 10.8% to RM688 million in 2017, contributing 9.7% to the Group’s overall pre-tax profit for 2017.
 
Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc, both subsidiaries of Public Bank, continued to be the main contributors to the Group’s overseas business growth, generating pre-tax profit of HKD616 million and USD59 million respectively during the year.
 
In addition, Vietnam will continue to be on the Public Bank Group’s overseas expansion plan. With the 100% foreign-owned bank licence obtained in 2016, the Group has further expanded its business through the opening of 6 new branches in 2017. As at to date, it has 13 branches and is planning to open more branches in 2018.
 
Tan Sri Teh emphasised that, The Group remains committed to expand its presence in the region through organic growth strategy and will continue to transfer its best practices from its domestic operations to accelerate business growth in its overseas operations.”
 
Healthy Capital Position
 
The Public Bank Group continued to maintain a healthy level of capital with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 12.2%, 13.0% and 16.0% respectively as at the end of 2017, after deducting the second interim dividend.  
 
Tan Sri Teh reiterated that, “Public Bank will continue to be proactive in its capital management in order to ensure that the Group’s capital position remains healthy at all times in support of the Group’s business growth strategies whilst optimising its shareholders’ return.”
 
Group’s Prospect
 
The banking sector outlook is expected to be generally stable in 2018. The global economic recovery is strengthening and the Malaysian economic growth is expected to remain strong in 2018. This sets a stable outlook for continued growth opportunities for the Malaysian banking sector.
 
While acknowledging the improved prospects in the overall economy, the Public Bank Group remains cautious on the potential downside pressure emanating from the continued low consumer sentiments and uncertainties lingering in the global economic environment.
 
However, the Public Bank Group is confident that its solid business model building on organic growth strategy in the core retail banking and financing business, coupled with its prudent credit policies, as well as strong risk management practices will continue to be the key strengths for the Group to strive for higher growth and sustainable profitability. Facing the highly competitive banking landscape, the Group’s key priorities are to accelerate business innovation and pursue operational efficiency in order to deliver the Group’s commitment to excellence to all its stakeholders,” concluded Tan Sri Teh.
 
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Y.Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow
Founder and Chairman of Public Bank

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Public Bank Offers 24K Gold-Plated Gifts “PB Golden Fortune Brings You Prosperity with Exquisite Gift”

For Immediate Release

2 January 2017

Public Bank Offers 24K Gold-Plated Gifts “PB Golden Fortune Brings You Prosperity with Exquisite Gift”

Public Bank is pleased to announce the launch of the ‘PB Golden Fortune Campaign’ in conjunction with the forthcoming Chinese New Year Celebration with golden reward. The promotion period of this Campaign is from 1 January 2018 to 31 March 2018 and it is open to all new and existing Public Bank customers.
 
There are two exclusively designed enchanting 24K gold-plated auspicious gifts up for grabs this year which consist of a plus size gift namely “Scroll of the Golden Koi” and a standard size gift “Auspicious Double Crane”. These gifts are limited edition and each represents a magnificent piece of gold craft that symbolises longevity, prosperity and success. The gifts are limited and only available on first-come-first-serve basis, while stock lasts.
 
There are two plans i.e. PB Golden Plan and PB Fortune Plan for customers’ selection. Customers can purchase Unit Trust (UT) or PB Smart Link (PBSL) or Gold Investment Account (GIA) bundled with deposit in PLUS or Basic Current / Savings Accounts in order to get the exclusive gift(s). PB Golden Plan offers one “Auspicious Double Crane” and PB Fortune Plan offers one “Scroll of the Golden Koi”.
 
This campaign is designed for customers who are looking for diversified investment products in achieving their financial goals. Customers can choose from a vast selection of Unit Trust funds that cater to their risk appetites in order to achieve their financial goals through proper financial planning. Customer can also invest in PB Smart Link which is an investment-linked insurance plan that provides insurance coverage. In addition, they can choose to invest in gold without having to keep physical gold via the Gold Investment Account which has remained a popular investment tool to safeguard wealth.
 
Just select the PB Golden Plan or PB Fortune Plan of your choice and be rewarded with the limited edition 24K gold-plated gift(s). 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, log on to PBB website at www.pbebank.com or call our free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.

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Public Bank And Public Islamic Bank Activate Relief Assistance Programme For Customers Affected By The Massive Flood

For Immediate Release

7 November 2017

Public Bank And Public Islamic Bank Activate Relief Assistance Programme For Customers Affected By The Massive Flood

Public Bank and Public Islamic Bank are activating the Relief Assistance Programme for its customers and employees who have been affected by the current flood in several states in Malaysia.
 
Public Bank Managing Director, Tan Sri Tay Ah Lek said today, “Similar to previous relief measures undertaken by Public Bank, the Bank is considerate towards the people who are affected by the flood. The Bank hopes that the Relief Assistance Programme would help to alleviate their hardship.”

Relief Assistance for Affected Customers
Effective November 2017, for the affected individual and business customers, Public Bank is offering moratorium of up to six months for the monthly instalment payments of loans and financing. The flood moratorium is applicable to house financing, hire purchase, credit cards and other loans and financing facilities.

In addition, Public Bank will, on a case-to-case and need basis, accommodate to requests by the affected customers to restructure their loans and financing, and reschedule their monthly repayment to assist in their cash-flow situation during this difficult time.

Public Bank will waive charges to affected customers who are seeking to replace their ATM cards, passbooks, cheque books or any banking related documents, which have been destroyed or lost in the flood.
   
Public Bank will also work in collaboration with Lonpac Insurance Bhd, under its Fast-Track Claim Settlement Programme, to facilitate and expedite claims to be made by the affected customers on losses covered by their respective insurance policies underwritten by Lonpac.

Financial Assistance for Staff
As a caring employer, Public Bank has provided special cash relief assistance to its affected staff and their families. The affected staff are being granted compassionate leave to enable them to attend to their domestic affairs.
 
Contacts
Affected customers who require the Relief Assistance Programme are advised to go to the Public Bank branch where they maintain their accounts or call the Bank’s toll-free number at 1800 22 5555. For insurance claims related matters, affected customers can contact Lonpac at 03-2262 8688.

“Public Bank stands ready to support the needs of customers and staff. The Bank will continue to monitor the situation and extend its assistance should the need arise,” Tan Sri Tay added.

 

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Comments On The Budget 2018

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

27 October 2017

Comments On The Budget 2018
 

We applaud the wholesome approach in crafting the Budget 2018. Budget 2018 touches all aspects of the society and rakyat from all walks of life.  It provides wide ranging and inclusive measures to promote economic expansion and wellbeing of the rakyat, particularly the medium and lower income group. This sets the direction for the nation to embark on the journey towards the National Transformation 2050 (TN50).  The Budget also addresses the needs of the rakyat amid rising cost of living. 
 
We view positively the Government’s firm and continuous commitment in strengthening its fiscal position, and Budget 2018 affirms this ongoing fiscal effort. Budget deficit is projected to reduce further to 2.8% of GDP in 2018, supported by expectations of higher government revenue and prudent fiscal spending.
 
The implementation of new and ongoing infrastructure projects will continue to stimulate investments, which in turn generate capacity expansion in high growth sectors. Domestic investment will complement private consumption activities, contributing to a broad-based economic growth.
 
The global economic landscape will continue evolving owing to technological advancement, particularly in the area of digital economy. In the midst of the Fourth Industrial Revolution, raising value-added productivity, alongside innovation, technological advancements and human capital development could unleash further the growth potential of the Malaysian economy. 

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

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Public Bank Group Achieved Pre-tax Profit of RM5.16 Billion for The First Nine Months of 2017

For Immediate Release

26 October 2017

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM5.16 BILLION FOR THE FIRST NINE MONTHS OF 2017

Chairman’s Review

For the first nine months of 2017, the Public Bank Group continued to make good progress, with its pre-tax profit increasing to RM5.16 billion, representing 8.4% growth from the corresponding period in 2016. Over the same period, net profit attributable to shareholders increased by 7.0% to RM3.98 billion.
 
The Public Bank Group’s sustained business momentum continued to be driven largely by its healthy growth in its loans and deposits business, generating 8.0% growth in its net interest income. Non-interest income also recorded a healthy growth of 7.6% during the period.
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “The macro environment and the more stringent regulatory requirements have presented many challenges to the banking business. Notwithstanding this, the Public Bank Group’s strategy has continued to deliver values and returns. The Group’s ability to sustain its business performance in this challenging market condition demonstrates its underlying strength as reflected in the Group retaining its competitive position.”
 
Tan Sri Teh added, “The Public Bank Group continued to outperform the Malaysian banking industry as reflected in its key performance indicators. As at the end of September 2017, the Group’s net return on equity stood at 15.4% with an efficient cost-to-income ratio of 32.8%, while the Group’s gross impaired loan ratio remained low at 0.5%.”
 
Healthy Loan and Deposit Growth

In the first nine months of 2017, the Public Bank Group’s total loans recorded 3.3% annualised growth to RM301.3 billion. The Group’s domestic loans portfolio grew at a higher annualised rate of 4.6%, as compared to the banking industry’s annualised growth rate of 3.5%.
 
“The Public Bank Group continued to focus on the financing for the purchase of residential properties, passenger vehicles and lending to small and medium enterprises, which remained our major  sources of  income. The Group has also continued to  retain leading market share in these lending segments,” commented Tan Sri Teh.
 
On deposit-taking, the Public Bank Group’s total deposits grew at an annualised rate of 5.4% to RM322.6 billion over the first nine months of 2017.  On the domestic front, total deposits grew at an annualised rate of 5.7% as compared to 3.7% annualised growth recorded in the domestic industry’s total deposits.
 
Growth in Non-interest Income
 
In the first nine months of 2017, the Public Bank Group’s non-interest income recorded a healthy growth of 7.6%, mainly attributed to the favourable growth in income from the Group’s unit trust management business, as well as fee income from its transactional banking services. 
 
Public Mutual Berhad, the Public Bank Group’s wholly-owned subsidiary, recorded 15.5% growth in profit during the nine months period ended September 2017, and continued to maintain its pole position in the domestic private unit trust industry. As at the end of September 2017, Public Mutual captured an overall retail market share of 41.8%. With 5 new unit trust funds launched over the first nine months of the year, Public Mutual currently manages a total of 138 funds with a total net asset value of RM78.5 billion under its management as at the end of September 2017.
 
Tan Sri Teh reiterated, “Non-interest income has remained integral to the Public Bank Group’s revenue source. The Public Bank Group will further strengthen its capability in growing this revenue stream through the offering of innovative products and proactive marketing and cross selling strategies.”
 
Prudent Approach in Cost Management
 
In the first nine months of 2017, the Public Bank Group continued to sustain an efficient level of cost-to-income ratio at 32.8%, significantly better than the banking industry’s average cost-to-income ratio of 45.8%.
 
Tan Sri Teh highlighted, “The Public Bank Group has put in considerable efforts to strengthen its productivity in order to sustain its cost efficiency.  When rising prices and cost of compliance are exerting pressure on the Group’s expenses, the Group has remained highly committed to financial discipline while ensuring compliance with regulations.”
 
Sustained Strong Asset Quality
 
Tan Sri Teh said, “The Public Bank Group has always focused on asset quality in the pursuit of business growth. Thus, the Group has been able to sustain its stable asset quality even in challenging times. As at the end of September 2017, the Group’s gross impaired loan ratio of 0.5% continued to remain the best in the domestic banking industry.”
 
Overseas Operations
 
The Public Bank Group’s overseas operations continued to drive revenue growth for the Group. For the first nine months of 2017, the Group’s overseas operations contributed 9.8% to the Group’s pre-tax profit, mainly attributed to Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc.
 
Tan Sri Teh reiterated, The Public Bank Group remains committed in growing its overseas operations, particularly in Indo-China and Hong Kong. In pursuit of the Group’s organic growth strategy, it will continue to explore opportunities for the opening of new branches and diversification of products and services to grow its regional operations.”
 
Healthy Capital Position
 
The Public Bank Group has remained well-capitalised with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 11.7%, 12.4% and 15.4% respectively as at the end of September 2017.
 
Tan Sri Teh emphasised, “Maintaining a healthy capital position has always been an important factor to banking resilience. It has remained a strategic action for the Public Bank Group to ensure its capitalisation complies with the regulatory requirement and is supportive of its business growth.”
 
Group’s Prospects
 
The Malaysian economy grew by a stronger than expected rate of 5.7% in the first half of 2017. The growing domestic economic activities, coupled with the firming external demand, are widely expected to underscore higher  GDP growth in 2017.
 
On the banking business, Tan Sri Teh commented, “The banking sector will continue to benefit from the growing economy. Nevertheless, we remain cautious as  downside risks will continue to exert pressure on consumer sentiment.”
 
Tan Sri Teh added, “With its strong foundation, the Public Bank Group has always been in good position to support the country’s economy. The Group will continue to leverage on its strong PB brand and its efficient banking resources and infrastructures to serve the public.”

MDF_0842-lonpac_CE.jpg

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

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Get Fabulous Gifts when You Save with Public Bank!

For Immediate Release

18 September 2017

Get Fabulous Gifts when You Save with Public Bank!
 
Public Bank has been constantly rewarding their Current/Savings account (CASA) customers by offering attractive gift items or bonus interest rates to customers. Due to encouraging responses, the Bank has launched the 3rd CASA campaign for year 2017 known as “PB Savers Reward” on 1 September 2017 which offers fabulous gifts to reward customers who deposit with the Bank. “PB Savers Reward” is open to all new and existing Public Bank individual customers. Eligible customers will be entitled to a variety of practical kitchen appliances when they deposit fresh funds into their Eligible CASA and allow the said deposit to be earmarked for six (6) months.
 
The Campaign offers 4 options of gift items which consist of Panasonic Cubie Steam Convection Oven, Morphy Richards IntelliChef Multi Cooker, Morgan Slow Juicer and Pensonic Mini Thermo Kettle which serve as great appliances in preparing healthy food and beverages. Customers are entitled to these gift items by depositing fresh fund of RM78,000, RM48,000, RM28,000 and RM8,000 respectively in their PLUS SA, Basic SA, PLUS Current Account or Basic Current Account. Customers may opt for more than 1 gift item as long as they fulfill the Campaign eligibility requirement. 
 
Public Bank is also simultaneously running 2 other Fixed Deposit (FD) Campaigns namely PB Super Fixed Deposit / Term Deposit-i Campaign and PB eFD Campaign, on top of the current CASA Campaign. The PB Super Fixed Deposit / Term Deposit-i Campaign offers attractive interest / profit rate. The minimum placement per receipt for individual customer and non-individual customer are RM10,000 and RM50,000 respectively. The interest / profit will be credited on a monthly basis into customer’s designated Conventional / Islamic CASA / CASA-i. Apart from this FD Campaign, Public Bank has also ventured into going paperless and allowing customers to make FD placement and withdrawals at their fingertips. The PB eFD Campaign allows customers to enjoy promotional interest rate of 3.20% p.a. for 6 months tenure and 3.40% p.a. for 12 to 24, 36, 48 and 60 months tenure. Customer just have to place a minimum amount of RM5,000 during the Campaign period to be eligible to participate under the Campaign. The Campaign is open to all individual customers aged 18 years and above and sole proprietors who have existing conventional CASA and who have registered for PBe. 
 
Moving forward, the Bank will continue to launch attractive deposit campaigns to reward customers for their continuous support and loyalty.
 
To find out more about Public Bank campaigns, customers are welcomed to visit any of our PBB branches, log on to PBB website at www.pbebank.com or call our free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.
 
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Public Bank Offers Alipay Mobile Wallet Service In Malaysia

For Immediate Release

15 August 2017

Public Bank Offers Alipay Mobile Wallet Service In Malaysia

Public Bank, Malaysia’s third largest bank and Ant Financial Services Group, an affiliate company of the Alibaba Group joined hands in connecting Malaysian merchants with Alipay mobile wallet services, an online and mobile payment solution.
 
Alipay mobile wallet services is catered to the needs for Alipay users from China who frequently travel and shop in Malaysia, offering the convenience of payment service over carrying large amounts of cash.
 
With the expanding business alliance between China and Malaysia, Public Bank believes offering the seamless Alipay service to its existing and new merchants will assist to increase their sales in view of the greater opportunity from the 520 million Alipay active users.
 
Besides, it also provides Alipay users with better customer experience in Malaysia as it spreads across numerous segments i.e. shopping, dining, hotel stays, etc.
 
Currently, this service is available at all outlets of Degem Collection, Eu Yan Sang, Lazo Diamond Jewellery, L’OCCITANE, Malindo Airways, Star Cruise, Swiss Luxury Watch & Jewelry, The Swatch Group, Vitacare Pharmacy and many more merchant outlets frequented by tourists from China.
 
The event was held at Menara Public Bank and attended by Public Bank’s Managing Director, Tan Sri Dato’ Sri Tay Ah Lek, Deputy Chief Executive Officer, Dato’ Chang Kat Kiam, Alipay South East Asia General Manager, Mr. Dayong Zhang, and Alipay Malaysia Country Head, Ms. Greta Gunawan at Menara Public Bank with the presence of other management staff of Public Bank, officials of Ant Financial Services Group and representatives from Public Bank’s merchants.
 
Commenting at the launch event, Tan Sri Dato’ Sri Tay Ah Lek said, “We are very excited with the collaboration with Alipay, whose parent company Ant Financial is the world’s largest fintech startup. We will roll-out Alipay service to our existing and new in-store merchants. Alipay mobile wallet has become an alternative cashless payment for Chinese tourists.”
 
Concurring on the significance of this partnership, Mr. Dayong Zhang said, “This partnership will enable Alipay payment acceptance at large merchant base of Public Bank and in the end create opportunities for local merchants to better target the large number of Chinese tourists coming to Malaysia.”
 
About Ant Financial Services Group
 
Launched in 2004, Alipay currently has over 520 million active users and over 450 financial institution partners. Alipay has evolved from a digital wallet to a lifestyle enabler. Users can hail a taxi, book a hotel, buy movie tickets, pay utility bills, make appointments with doctors, or purchase wealth management products directly from within the app. In addition to online payments, Alipay is expanding to in-store offline payments both inside and outside of China. Over 10 million brick-and-mortar merchants now accept Alipay across China. Alipay’s in-store payment service is covering more than 200,000 retail stores across the world, and tax reimbursement via Alipay is supported in 24 countries and regions. Alipay currently supports 19 currencies.
 
About Public Bank Berhad
 
Founded in 1966 by Tan Sri Dato’ Sri Dr. Teh Hong Piow and listed on the Main Board of Bursa Securities Malaysia in 1967, Public Bank Berhad is today the leading financial services provider serving over five million customers in Malaysia. Known for its prudent management and strong corporate governance, Public Bank Berhad continues to be accorded international and domestic awards and accolades.
 
The Group continues to commit to deliver excellent customer service and to be more innovative in providing superior financial products and services to meet increasingly sophisticated customer demand. For more information, visit www.pbebank.com.

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From left Dato’ Chang Kat Kiam, Tan Sri Dato’ Sri Tay Ah Lek, Mr. Dayong Zhang and Ms. Greta Gunawan at the launch event of Alipay Service between Public Bank and Alipay


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Tan Sri Dato’ Sri Dr. Teh Hong Piow to Relinquish Position as Chairman of Public Bank on 1 January 2019 and Stay on as Chairman Emeritus and Adviser

For Immediate Release

31 July 2017

Tan Sri Dato’ Sri Dr. Teh Hong Piow to Relinquish Position as Chairman of Public Bank on 1 January 2019 and Stay on as Chairman Emeritus and Adviser

The Board of Directors of Public Bank (PBB) wishes to announce that Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Non-Executive Chairman of the Company, wishes to relinquish his position as Chairman of PBB on 1 January 2019.
 
In recognition of his par excellence contributions to PBB over the past  51 years since he founded PBB on 30 December 1965,   Tan Sri Dato’ Sri Dr. Teh Hong Piow will be bestowed the title of Chairman Emeritus on 1 January 2019 when he retires as Chairman of PBB. Tan Sri Dato’ Sri Dr. Teh Hong Piow will stay on as Adviser with effect from 1 January 2019 and provide guidance to support the continued growth of PBB and the PBB Group.
 
The Board of Directors further wishes to announce that Tan Sri Dato’ Sri Dr. Teh Hong Piow, who is also the Non-Executive Chairman of Public Islamic Bank Berhad (PIBB) and Public Investment Bank Berhad (PIVB), both wholly-owned subsidiaries of PBB, will retire as Chairman of these two subsidiaries on 1 January 2018 and stay on as Non-Executive Director with effect from 1 January 2018.
 
The smooth transitions of the succession of the Chairmanship of PBB, PIBB and PIVB are in place.
 
The details relating to the appointment of the new Chairman of PBB will be announced at an appropriate time

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Public Bank Group Achieved Pre-Tax Profit of RM3.37 Billion For The First Half of 2017 and Declared 27 Sen First Interim Dividend

For Immediate Release

25 July 2017

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM3.37 BILLION FOR THE FIRST HALF OF 2017 AND DECLARED 27 SEN FIRST INTERIM DIVIDEND

Chairman’s Review

For the first half year ended 30 June 2017, the Public Bank Group’s pre-tax profit increased to RM3.37 billion, up 5.1% from the corresponding period in 2016. Over the same period, net profit attributable to shareholders increased by 3.8% to RM2.58 billion.
 
On its quarterly performance, the Group’s net profit for the second quarter of 2017 of RM1.33 billion represents a 6.0% growth as compared to the second quarter of 2016.
 
The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “The Public Bank Group has continued with its positive momentum in sustaining profitability growth. The Group’s clear and focused business strategy coupled with its prudent credit culture, continues to underpin its consistent financial performance under the current challenging operating environment.”
 
The Public Bank Group’s sustained profitability continued to be driven by the expansion in its loan and deposit portfolio, which led to a growth of 8.3% in its net interest income.
 
“With the improved profitability, the Public Bank Group achieved a net return on equity of 15.3%. The Group’s financial strength was also attributed to its strong asset quality and efficient cost management, as reflected in its gross impaired loan ratio of 0.5% and cost-to-income ratio of 33.8% as at the end of June 2017.” Tan Sri Teh added.
 
In view of the Group’s favourable performance, Tan Sri Teh is pleased to announce, “The Board of Directors has declared a first interim dividend of 27 Sen per share, which will result in a total dividend payout of RM1.04 billion. The first interim dividend will be paid on 17 August 2017 based on the dividend entitlement date of 9 August 2017.”
 
Healthy Loan and Deposit Growth

In the first half of 2017, the Public Bank Group’s total loans recorded an annualised growth rate of 3.1% to RM298.5 billion. Domestic loan growth continued to stay above industry average, growing at an annualised rate of 4.3% as compared to the annualised industry loan growth of 2.8%. Tan Sri Teh commented that, “The focus on the financing for the purchase of residential properties, passenger vehicles and lending to small and medium enterprises, has remained a market niche for the Group as it has maintained a large market share in these lending segments despite the still challenging lending market.”

On deposit-taking, the Public Bank Group’s wide market access and strong deposit franchise have enabled the Group to achieve a healthy annualised deposit growth of 4.7% to RM317.3 billion. Similarly, on the domestic front, the Group’s deposit growth stayed above industry growth, registering an annualised growth of 5.3% as compared to 5.1% annualised growth in the industry.
 
Tan Sri Teh said that, “The Group’s funding and liquidity position has remained healthy with its net loan-to-deposit ratio standing at 93.6% as at the end of June 2017.”
 
Growth in Non-interest Income
 
Growth momentum of the Public Bank Group’s non-interest income remained positive, underpinned primarily by its unit trust management business and transactional fee income.
 
Public Mutual Berhad, the Group’s wholly-owned subsidiary, continued to be a major contributor to the Group’s non-interest income. For the first half of 2017, Public Mutual’s unit trust business achieved a commendable growth of 16.2% in pre-tax profit from the same period last year. Tapping on its strong market position, Public Mutual captured a major retail market share of 43.0% in the domestic private unit trust industry. Its portfolio continued to grow as it has 135 unit trust funds with a total net asset value of RM76.9 billion under its management as at the end of June 2017.
 
Tan Sri Teh commented that, “While the Public Bank Group’s core business focuses on retail financing, non-interest income has always been a significant source of revenue complementing the Group’s core business. The Group also taps on its strong clientele base and retail franchise to cross-sell its wealth management products and other fee income services.”
 
Prudent Approach in Cost Management
 
As at the end of June 2017, the Public Bank Group posted a cost-to-income ratio of 33.8%, significantly better than the banking industry’s average of 45.8%.
 
Tan Sri Teh highlighted, “When rising costs continued to pose earnings pressure, the Public Bank Group’s long-embedded practices of good cost management has remained a competitive advantage sustaining the Group’s profitability.”
 
Sustained Strong Asset Quality
 
The Public Bank Group’s sustained sound asset quality continued to contribute to its stable profitability growth. Strict compliance culture, robust risk management and prudent credit practices have enabled the Group to maintain the lowest gross impaired loan ratio among peers, which stood at a low 0.5% as at the end of June 2017.
 
Tan Sri Teh emphasised, “The Public Bank Group upholds a high commitment to strong asset quality. It is a key to sustain the stability of the Group and confidence of the public, hence placing the Group in good stead to grow further, particularly in times of challenges.”
 
Overseas Operations
 
For the first half of 2017, the Public Bank Group’s overseas operations contributed 10.2% to the Group’s pre-tax profit. Tan Sri Teh said, “Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc, are the main contributors to the Group’s overseas business growth.
 
In addition, Vietnam will continue to be on the Public Bank Group’s overseas expansion plan. With the 100% foreign-owned bank license obtained in 2016, the Group has further expanded its business through the opening of 2 new branches in the first half of 2017. As at to date, it has 9 branches and is planning to open 4 more branches in the near term.”
 
Healthy Capital Position
 
The Public Bank Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at a healthy level at 11.8%, 12.6% and 16.4% respectively as at end-June 2017, after deducting the first interim dividend. Tan Sri Teh reiterated that “Maintaining a healthy capital position provides the Public Bank Group with good growth opportunities while ensuring compliance with regulatory requirement.”
 
Group’s Prospect
 
The Malaysian economy for 2017 is poised for higher growth as the macro condition in the global and domestic front have generally improved. The domestic operating environment will continue to face multiple headwinds arising from rising prices, volatility in global commodity prices and financial markets, and various uncertainties that are likely to spill into the real economy.
 
Tan Sri Teh added, “In facing the evolving environment and the shift in trend in the banking landscape, the Group will continue to play its role well as a financial intermediary to serve public needs for financial services and facilitate economic development through its organic growth strategy. Banking is a business of trust, hence the Group will continue to emphasise on prudent management for sustainable performance and stability. Nevertheless, the Group will always remain agile and flexible to changes and opportunities to better serve the interests of all its stakeholders.”


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

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