Media Release

FOR IMMEDIATE RELEASE

21 September 2023

Public Bank Collaborates with Syarikat Jaminan Pembiayaan Perniagaan Berhad to Extend RM1 Billion in Financing to SMEs

Public Bank Berhad will be extending RM1 billion of financing to small and medium enterprises (SMEs) through a strategic collaboration with the credit guarantee agency under the Ministry of Finance (MoF), Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP).

The RM1 billion financing will cover all existing and future financing schemes guaranteed by SJPP such as Working Capital Guarantee Scheme (WCGS), PEMULIH Government Guarantee Scheme (PGGS) and others.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said the collaboration with SJPP will further boost SMEs’ access to financing.

“With a substantial domestic exposure of RM67 billion for SME-based commercial lending as at end of 2022, equivalent to an 18.6% industry market share, Public Bank remains committed to serve the SME segment and helping them to prosper, expand and further contribute to the country's economic growth”, Tan Sri Tay said during the special ceremony to commemorate the strategic collaboration on 21 September 2023 at Menara Public Bank.

Also present were Public Bank’s Deputy Chief Executive Officer Dato’ Chang Kat Kiam, SJPP’s Chief Operating Officer Pn. Juanita Rusmini Abdul Jalil and Senior General Manager (Guarantee Schemes Management) En. Azlan Mohd Agel, as well as other Senior Management staff of both organisations.

During the ceremony, Public Bank also announced its participation in the ‘Government Guarantee Scheme MADANI (GGSM)’.

GGSM is the latest financing scheme guaranteed which is aimed to rejuvenate the business of eligible Malaysian SMEs and mid-sized companies with special focus on companies involved in 4 economic sectors i.e. High Technology, Agriculture, Manufacturing and Tourism. Qualified business establishments from these 4 focus sectors will be able to benefit from the higher SJPP guarantee coverage of up to 90% and guarantee fee of as low as 0.50%.

On top of that, Public Bank and SJPP are also collaborating to develop ESG-focused financing schemes to further encourage SMEs to participate in sustainability best practices.

“The new collaboration with SJPP aims to support the business community’s growing demand for ESG-related products and solutions which is also fully aligned with Public Bank’s proactive approach in embracing growth opportunities presented by the nation’s aspirations to grow and transform towards a digitally and sustainably driven economy,” Tan Sri Tay concluded.

From left:

1. Pn. Noorshiba Mohamad, Deputy General Manager/Head of SJKP, SJPP
2. Ms. Doris Lai Yee Foong, General Manager, Guarantee Schemes Management Operations, SJPP
3. Dato’ Sulaiman Abd Manap, Senior Chief Operating Officer, PBB
4. Pn. Juanita Rusmini Abdul Jalil, Chief Operating Officer, SJPP
5. Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director/Chief Executive Officer, PBB
6. En. Azlan Mohd Agel, Senior General Manager, Guarantee Schemes Management, SJPP
7. Dato’ Chang Kat Kiam, Deputy Chief Executive Officer, PBB
8. Mr. Lee Kok Keong, General Manager of Credit Operations Division, PBB during the ceremony

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FOR IMMEDIATE RELEASE

29 August 2023

Public Bank Group Achieved Pre-Tax Profit of RM4.30 Billion For The First Half of 2023 and Declared 9.0 Sen First Interim Dividend

For the first half of 2023, the Public Bank Group recorded pre-tax profit of RM4.30 billion and net profit of RM3.33 billion, growing by 7.0% and 18.4% respectively compared with the corresponding period in 2022.

The profit performance was mainly driven by the Group’s continued healthy loans and deposits growth, prudent cost management as well as stable asset quality. Accordingly, the Group sustained a resilient net return on equity of 13.2%.

Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank announced that, “In view of the resilient financial performance in the first half of 2023, the Board of Directors of Public Bank declared a first interim dividend of 9.0 sen per share.”

Net interest income increased by 3.4% mainly led by the loans and deposits businesses which expanded at an annualised growth rate of 5.4% and 6.0% respectively.

Non-interest income grew by 5.4%, on the back of higher income from foreign exchange and stock-broking businesses.

The Group sustained an efficient cost-to-income ratio of 33.7% in the first half of 2023, underpinned by prudent cost management with operating expenses increasing by 3.5% compared with the corresponding period in 2022.

Asset quality remained stable with gross impaired loans ratio of 0.55%. Loan impairment allowances were lower by 85.7%, while loan loss coverage ratio stood at a prudent level of 199.1% as at the end of June 2023.

 
Loans and Deposits Businesses

The Public Bank Group maintained a healthy loan growth momentum at an annualised growth rate of 5.4% to RM387.2 billion as at end-June 2023, largely supported by the domestic loans which grew by an annualised rate of 5.0% to RM360.8 billion. Total newly approved domestic loans during the first half of 2023 demonstrated an increase of 9.1% as compared with the same period last year, providing a healthy pipeline of loan growth going forward.

Domestic loan growth was mainly contributed by residential properties financing and hire purchase financing, which grew at an annualised rate of 6.1% and 11.0% respectively. This has sustained the Group’s leading market share in the residential properties financing segment and hire purchase financing segment, which stood at 20.6% and 30.5% respectively. The Group also continued to capture a leading market share of 18.7% in the SME segment.

The Group’s funding and liquidity position remained healthy. Total customer deposits grew at an annualised rate of 6.0% to RM406.5 billion as at end-June 2023. Domestic deposits rose by 6.1% on an annualised basis to RM378.4 billion, partly attributed to the consistent growth in retail deposit. As at the end of June 2023, the Group continued to maintain a stable gross loan to fund and equity ratio of 80.9%.

Asset Quality

As at the end of June 2023, the Public Bank Group’s asset quality remained sound with gross impaired loans ratio of 0.55%, significantly lower than the domestic banking industry’s average gross impaired loan ratio of 1.76%.

The Group’s loan loss coverage ratio stood comfortably at 199.1%, well above the banking industry’s loan loss coverage ratio of 91.8%. Including regulatory reserves, the Group’s loan loss coverage ratio was higher at 226.1%.

With the recent increase of the OPR, the Group remained vigilant in managing its loan portfolio, including providing continued repayment assistance, rescheduling and restructuring of payment and providing borrowers the option to retain their pre-existing monthly instalment amount prior to the interest rate increase.

Non-interest Income

Non-interest income grew by 5.4% to RM1.25 billion in the first half of 2023, primarily from the increase in income from foreign exchange and stock-broking businesses.

The Public Bank Group’s unit trust business undertaken by its wholly-owned subsidiary, Public Mutual remained the main contributor to the Group’s non-interest income. Public Mutual recorded a pre-tax profit of RM387.6 million in the current period, contributing 9.0% to the Group’s profit. Despite the unfavourable market condition, net asset value of funds under management had increased by 4.6%, over the six months period to RM96.0 billion as at the end of June 2023, with a total of 180 unit trust funds under management. Public Mutual continued to record a large retail market share of 35.8% as at the end of June 2023.

Overseas Operations

In the first half of 2023, the Public Bank Group’s overseas operations contributed 7.8% to the Group’s profit, mainly attributed to its Hong Kong and Indochina operations.

Public Bank Vietnam Limited and Cambodian Public Bank Plc (“Campu Bank”) continued to deliver strong profit performance, as reflected in the respective double-digit profit growth of 15.9% and 33.1% year-on-year.

The Group has been proactive in expanding its business in the fast emerging Indochina region. In June 2023, Campu Bank opened its 32nd branch in Phnom Penh. As for its Vietnam’s operations, Public Bank Vietnam is targeting to open eight new branches this year to reach a total of 40 branches.

The Group’s operations in Hong Kong remained challenging, despite the lifting of COVID-19 containment measures. While adapting to the changes of the operating environment, the Group will continue to adopt prudent and flexible business strategies, maintain prudent credit policies as well as further improve cost efficiency while pursuing business growth.

Capital and Liquidity Position

As at the end of June 2023, the Group remained well capitalised with common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 14.7%, 14.7% and 17.6% respectively, after deducting the first interim dividend. Liquidity coverage ratio also remained stable and healthy, further improved to 134.4%.

Dividend

The Board of Directors declared a first interim dividend of 9.0 sen per share, representing a total dividend payout of RM1.75 billion or 52.4% of the Group’s net profit for the half year ended 30 June 2023. The first interim dividend will be paid on 22 September 2023 based on the dividend entitlement date of 14 September 2023.

Group’s Prospects

The global economy is expected to grow modestly in 2023. Global headwinds due to high inflationary pressure and tightening in financial conditions remain, with downside risks stemming from a potential widespread of banking stress in several advanced economies.

While Malaysia will continue to be affected by these headwinds, the Malaysian economy is expected to remain resilient underpinned by domestic demand, with the improvement in employment market as well as the further progress of multi-year investment projects and tourism activities. The domestic financial conditions continue to be supportive of the domestic economic growth with the banking system remaining resilient with ample liquidity and healthy capital buffers.

Tan Sri Tay said, “With the continued expansion of the Malaysian economy, the business prospect of the banking sector remains positive. Further to that, there are growing opportunities arising from the increasing demand for digital banking and ESG products. However, the post pandemic recovery has been challenging. The Public Bank Group will remain vigilant to prevailing downside risks, while staying agile in onboarding viable business opportunities.”

Tan Sri Tay added, “On addressing scams, the Group continuously enhances online security with various new measures. These include the implementation of a stronger authentication method known as the PB SecureSign to replace SMS PAC authentication for online transactions approval. Public Bank has also introduced a cooling-off period for banking transactions which are deemed higher risk or abnormal, providing additional security to minimise the risk of scams.”

Tan Sri Tay concluded, “Safeguarding the interests of stakeholders will always be the Public Bank Group’s top priority.”

Tan Sri Dato’ Sri Dr. Tay Ah Lek

Managing Director and Chief Executive Officer

Public Bank

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FOR IMMEDIATE RELEASE

14 August 2023

Public Bank and smart Malaysia Aim at Financing Revolutionize Industry Standards

Public Bank Berhad formalised a collaboration with Proton New Energy Technology Sdn Bhd (PRO-NET) with the signing of a Memorandum of Collaboration (MoC) on 9 August 2023 to provide financing facilities on a wholesome financial products and services, and to embark on digitalisation via systems integration with smart Malaysia and its authorised dealers.

This collaboration will enable Public Bank to interface and facilitate digitalisation via online submission of hire purchase end-financing applications and Floor Stocking facility through smart customer App and their authorised dealers thus improving the market shares in the Electric Vehicle (EV) automotive industry.

PRO-NET is an exclusive authorised importer and distributor for smart vehicles in Malaysia and Thailand. These strategic appointments are expected to accelerate the sales of the company’s all-new innovative EV. The initial offering for the Malaysian market is the award-winning smart #1, which recently made its debut at Electric Vehicle Expo (EVx) 2023 in Setia City Convention Centre, drawing attention from local fans and sparking lively discussions on social media.

Present at the signing ceremony at Menara Public Bank were Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer and Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank, En. Roslan bin Abdullah, Board Member of PRO-NET, Mr. Wang Huaibing, Board Member of PRO-NET, Mr. Zhang Qiang, Chief Executive Officer of PRO-NET, and other Senior Management staff of both companies.

Tan Sri Dato’ Sri Dr. Tay Ah Lek in his speech said “Supporting the growth of the New Energy Vehicles (NEV) has always been a key pillar to our climate agenda.  The Bank had mobilised over RM30 billion in domestic NEV financing by the end of 2022, representing approximately 52% of the Bank's total domestic Hire Purchase financing portfolio. To signify the Bank’s commitment, the NEV lending target had now been increased to RM33 billion by 2025.

He further added, “There is a compelling opportunity for Public Bank and PRO-NET to foster strong synergies from the onset. Not only will this be win-win in advancing our respective business objectives, it also contributes to another win in our common battle against climate change”.

Mr. Zhang Qiang expressed, "The advent of New Energy Vehicles (NEVs) signifies a significant departure from traditional products by leveraging EV technology to foster enhanced connectivity and address evolving consumer needs. At the heart of PRO-NET's mission lies a strong commitment to deliver a seamless digital customer journey in collaboration with esteemed eco-partners, aiming to achieve a smart EV mobility ecosystem. PRO-NET is making remarkable progress in developing a smart Malaysia customers' App, set to offer an exceptional range of eco-services, including convenient online loan applications and seamless charging information capabilities. Our goal is to ensure transparency on the transaction, enhance efficiency, and speed throughout their journey with the smart brand".

En. Roslan bin Abdullah said, "By collaborating with Public Bank, our aim is to streamline the purchasing process and provide a hassle-free and reshaping customer digital experience. Innovation and customer-centricity are deeply ingrained in PRO-NET and smart's DNA, with a commitment to continually offer premium solutions and co-create a better future with their valued customers".

He further added, “As the first EV brand to collaborate with Public Bank, smart is leading the way in pioneering a transformation of the banking industry’s digital landscape.”

From left:

1. Wong Man Hoe, General Manager of HP Operations Division, Public Bank
2. Dato' Chang Kat Kiam, Deputy CEO of Public Bank
3. Tan Sri Dato' Sri Dr. Tay Ah Lek, Managing Director and CEO of Public Bank
4. Roslan bin Abdullah, CEO of Proton Edar Sdn Bhd (PESB) and Board Member of Pro-Net
5. Zhang Qiang, CEO of Pro-Net
6. Wang Huaibing, Board Member of Pro-Net

at the signing ceremony in Menara Public Bank on 9 August 2023

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FOR IMMEDIATE RELEASE

25 July 2023

Public Bank Ensures Access to Financing Remains Widely Available in Supporting the Nation’s Economic Recovery

Public Bank has been ensuring equitable access to suitable and affordable financial products and services to people from all segments of the society since opening its doors for business in 6 August 1966.

Emphasising financial inclusion through the provision of affordable financing to support all segments of society, especially financing for affordable housing, Public Bank facilitated the financing of affordable homes, amounting to RM11.85 billion as of end 2022.

This is aligned with Public Bank’s commitment of mobilising RM48 billion in Environmental, Social and Governance (ESG) friendly financing by 2025, including RM15 billion for affordable home financing.

Notwithstanding, Public Bank’s RM67 billion domestic exposure to small and medium enterprises (SMEs) based commercial lending as at end 2022, equivalent to an 18.6% industry market share, is a clear indication of its strong support for Malaysian SMEs.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said Public Bank’s comprehensive financial products and facilities catering to both individuals and SMEs remain widely available.

“Public Bank has been ensuring that access to financing remains available to facilitate a conducive environment for sustainable economic growth while supporting the livelihood of the society at large,” Tan Sri Tay said in support of the government's ongoing efforts throughout the economic recovery phase.

 
To further enhance the financial access for SMEs, Public Bank has ongoing strategic collaboration with Credit Guarantee Corporation Malaysia Berhad (CGC) and Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP) in a series of guarantee schemes which enable eligible SMEs that lack collateral to obtain financing.

Public Bank has also been actively participating in special schemes initiated by the Government and Bank Negara Malaysia since the COVID-19 pandemic and has approved about RM3.7 billion of financing, benefiting more than 18,800 SMEs.

On top of ensuring access to financing, as part of Public Bank’s sustainability agenda, Public Bank has also been providing a diverse range of green financing solutions to SMEs, aimed at encouraging the adoption of environmentally friendly practices, while reducing financing for high-risk climate-related purposes.

Going further from just providing financing schemes, Public Bank has also organised activities for SME capacity building initiatives, including roadshows, seminars, digitalisation collaborations and initiatives involving transitioning toward ESG. One of them being the Train-The-Trainers programme where virtual SME Financing Roadshows are conducted to create awareness on the various financing solutions offered by Public Bank.

Such initiatives provide an avenue for SMEs to address any financial or funding information asymmetry.

Next, Public Bank has also planned to organise a series of seminars to keep SMEs updated with market developments, with the maiden seminar held on green real estate seminar. Key knowledge and information conveyed to the SMEs include issues covering climate change, ESG and the benefits and opportunities of pursuing sustainability.

With industry experts’ insight to raise the awareness on sustainable development for SME developers, the seminar, held on 14 June 2023 in Klang Valley region received overwhelming response, paving the way for such seminars in the near future.

To find out more, customers may contact the Bank at 03-2176 6008 or visit the Bank’s website at https://www.pbebank.com.

Tan Sri Dato' Sri Dr. Tay Ah Lek

Managing Director and Chief Executive Officer

Public Bank

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FOR IMMEDIATE RELEASE

24 July 2023

Public Bank Continues to Provide Preventive Measures Against Scams and Frauds while Reminding Customers to Remain Vigilant

Public Bank continues to step up security measures against the various modus operandi of scams and frauds and one of the latest scam involved an illegal syndicate offering loans through social media platforms with low interest rate.

“We are working closely with the authorities to address scams and frauds. Meanwhile, customers are reminded to remain vigilant, and to keep themselves updated of the various modus operandi of scams and frauds,” said Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek.

Customers can learn more about the various modus operandi of scams and frauds at https://www.pbebank.com/onlinesecurity/index.html.

Public Bank does not request for any sensitive banking information, upfront fees to be paid to personal account and does not offer guaranteed approval, which can be appealing to certain borrowers.

Customers are advised not to respond to loan advertisements through social media platforms. Instead, customers are advised to verify what they have seen with legitimate financial institutions before proceeding with their applications.

Meanwhile, Public Bank has steadfastly implemented Bank Negara Malaysia’s (BNM) five key measures for combating financial scams and is further encouraging customers to safeguard their online banking credentials through the practice of responsible online banking behaviour.

 “Public Bank remains dedicated to staying at the forefront of security best practices and will continue to invest in banking security systems to provide customers with robust banking security while keeping customers informed,” Tan Sri Tay said.

Hence, on top of the five key measures - such as instituting a transaction cooling-off period, migrating from SMS one-time passwords (OTP) to a more secure authentication method with the PB Secure Sign, single designated device for authorisation, removal of hyperlinks from SMS and email communications and a 24-Hour Case Management Digital Support Hotline for customers, Public Bank further emphasise that customers remained vigilant at all times when they are doing online banking transactions.

This included being alert to ensure that the Personal Login Phrase (PLP) is authentic and the Uniform Resource Locator (URL) or termed as the web address has the padlock symbol and the green address bar prior to attempting to login.

This will assist customers in verifying if the website is genuine as phishing website is unable to replicate this confidential information.

Apart from these two safety precaution, the “PBe Challenge Questions” will be prompted when the transactions are deemed high risk or suspicious and the Bank strongly advise customers not to disclose their answers to any parties.

Public Bank has been proactively keeping abreast of the developments of the landscape involving fraud and scam, while vigilantly stepping up online security measures to monitor and counter any fraud threats by educating customers through various digital touchpoints such as email blasts, social media, light box security alert, internet banking, mobile banking platform as well as physical presence in conferences and seminars.

In the event where customers notice any irregularities in their bank accounts or suspect fraudulent activity, customers can reach out to the 24-Hours Case Management, Digital Support Hotline at 03-2177 3555 or the National Scam Response Centre at 997 between 8:00 a.m. to 8:00 p.m. daily.

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FOR IMMEDIATE RELEASE

20 July 2023

Public Bank Continues to Provide Repayment Assistance To Individuals and SMEs while Supporting the Nation’s Economic Recovery

Public Bank remains committed to assist individuals and small and medium enterprises (SMEs) in need of repayment assistance, including assistance in rescheduling and restructuring (R&R) their loans.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said Public Bank’s comprehensive suite of repayment assistance to individuals and SMEs remain widely available.

“Public Bank has been providing repayment assistance to borrowers who are in need including R&R of payment. Further to this, with the increase of interest rate, borrowers may also request to retain their pre-existing monthly instalment amount prior to the interest rate increase,” Tan Sri Tay said in support of the government's ongoing efforts throughout the economic recovery phase.

As a ‘bank for the public’ with strong roots in the communities since opening its doors for business in 6 August 1966, Tan Sri Tay said throughout the years, from the pandemic to the recent floods, Public Bank has offered repayment assistance to flood relief assistance to defer repayment in order to alleviate the financial burden for borrowers who are adversely affected by such calamities.

It is pivotal to assist customers to get back on their feet during such challenging times and taking flood relief assistance as an example, Public Bank has been offering support to SMEs for repairs as well as replacing their business assets such as plants and machinery, which have been damaged by floods, as well as to provide working capital assistance.

This is achieved through the offering of the Bank Negara Malaysia’s (BNM) Disaster Relief Facility of which Public Bank has provided over RM38 million in financing to date.  

Not stopping there, Public Bank has also placed significant emphasis on raising awareness about Khidmat Nasihat Pembiayaan (MyKNP). This advisory service provides greater understanding of the factors affecting borrowers’ financing applications and subsequently, by addressing those factors could help in raising their eligibility for future financing.

To find out more, customers may contact the Bank at 03-2176 6008 or visit the Bank’s website at https://www.pbebank.com.

Tan Sri Dato' Sri Dr. Tay Ah Lek

Managing Director and Chief Executive Officer

Public Bank

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FOR IMMEDIATE RELEASE

11 July 2023

Public Bank Embarks on Eco-Schools Programme with RM1.2 Million Sponsorship

Public Bank Berhad is the first bank in Malaysia to embark on the Eco-Schools programme, pioneering climate education initiatives using project based learning method in schools, including implementation of projects to reduce greenhouse gas emissions.

As part of its environmental, social and governance (ESG) initiatives, Public Bank, together with Green Growth Asia Foundation (GGAF), signed a sponsorship agreement to roll out the Eco-Schools programme involving 20 schools in Pahang, Selangor and Kuala Lumpur for a period of 3 years from 2023 to 2025, with a total sponsorship of RM1.2 million.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said, “As financiers, we believe that financing for sustainability will drive future sustainable value creation for the bank and its stakeholders. As Benjamin Franklin once said, it is investment in knowledge that pays the best interest.”

The sponsorship agreement was signed by Tan Sri Tay and Ir. Ts. Dr. Mahadi Mohamad, Executive Director of GGAF, and witnessed by Dato’ Chang Kat Kiam, Public Bank’s Deputy Chief Executive Officer and Dr. Balamurugan Ratha Krishnan, GGAF’s Chief Executive today in Menara Public Bank.

Tan Sri Tay further added that embracing ESG is an opportunity to build a world where economic prosperity coexists with environmental preservation and social harmony.

“We had made significant commitments towards sustainability - balancing our mandate as a financial institution while embracing environmental, social, and governance factors, or ESG, as part of our business-as-usual. On top of our commitment towards achieving carbon neutrality by 2030, and net zero carbon by 2050, we also have committed to mobilise RM48 billion in ESG friendly financing by 2025.”

Educating the future generation on climate and environmental matters, the collaboration with GGAF will also support other quantitative initiatives, such as data collection and research relating to greenhouse gases to facilitate further initiatives in achieving the global goal of net zero carbon.

GGAF is a non-profit organisation incorporated in Malaysia that aims to spearhead initiatives to promote a new green growth strategy that strikes a balance between economic development, social inclusivity and environmental sustainability. As a Full Member of the Foundation for Environmental Education, GGAF has been implementing the Eco-Schools programme since 2016. To-date, there are 206 schools from Melaka, Perak and Kedah participating in Eco-Schools programme, with more than 15 schools achieving the International Green Flag Award.

“This remarkable partnership between Public Bank and GGAF makes a significant milestone in our collective efforts towards environmental sustainability and youth empowerment,” said Ir. Ts. Dr. Mahadi Mohamad, Executive Director, Green Growth Asia Foundation.

This collaboration with GGAF is one of Public Bank’s initiatives towards achieving its ESG goals, serving as a powerful catalyst for good and joining a global movement to address global challenges while contributing to the nation’s economic transformation and social well-being.

For more information on Public Bank’s ESG initiatives, please visit the Public Bank Group’s website at www.publicbankgroup.com.

Ir. Ts. Dr. Mahadi Mohamad, Executive Director of GGAF receiving the mock cheque from Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and CEO of Public Bank witnessed by Dato’ Chang Kat Kiam, Public Bank’s Deputy CEO and Dr. Balamurugan Ratha Krishnan, GGAF’s Chief Executive
From left: Dato’ Chang Kat Kiam, Tan Sri Dato’ Sri Dr. Tay Ah Lek, Ir. Ts. Dr. Mahadi Mohamad and Dr. Balamurugan Ratha Krishnan

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FOR IMMEDIATE RELEASE

7 July 2023

Public Bank’s Sustainability Culture Recognised with Three Awards by FinanceAsia Country Awards 2023

Public Bank’s culture of caring for its stakeholders which has been imbued in the Bank’s DNA since its founding on 6 August 1966, was awarded the Best ESG Impact Award in Malaysia in the FinanceAsia Country Awards 2023.

Further to that, Public Bank was also awarded two other country awards, the Best Bank and Best Sustainable Bank awards.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said Public Bank has sustainability in mind in everything it does.

“Public Bank’s business objectives are in harmony with the community’s interest. From the Environmental, Social and Governance (ESG) perspectives, we deliberate on every detail on how we can make the world a better place, especially for the future generation, and incorporating these details into our business strategy,” Tan Sri Tay said, adding that Public Bank aims to mobilise RM48 billion in ESG-friendly financing by 2025.

Public Bank also targets to achieve carbon neutral position (Scope 1 and 2) by 2030 and to achieve net zero carbon by 2050.

To achieve these goals, Public Bank is already on track with its wide offering of green financing solutions to its customers to facilitate the adoption of greener practices, while curbing financing to risky climate-related purposes.

Public Bank provides preferential pricing for environmentally-friendly economic activities, and had approved more than RM620 million for such financing as at end of December 2022.

Other areas that Public Bank proactively supports are the energy efficient vehicles (“EEV”) and solar panel financing segments.

As at end of December 2022, its domestic EEV financing portfolio had amassed a sum of RM30 billion, while its solar panel financing, offered by its Islamic banking arm, Public Islamic Bank, had provided over RM7 million in financing of solar panel.

Notwithstanding, Public Bank has been promoting financial inclusion.

One being the provision of affordable financing to support all segments of society, especially financing for affordable housing. In 2022, Public Bank assisted over 31,000 customers to purchase homes costing between RM100,000 and RM500,000.

As a leading financier for small and medium enterprises (“SME”) with a domestic market share of 18.6% as at end 2022, Public Bank has also been actively participating in SME financing schemes initiated by the Government and Bank Negara Malaysia, benefitting more than 18,600 businesses totaling RM3.6 billion as at end of December 2022.

To further strengthen Public Bank’s commitment to enhance its governance mechanism in sustainability management, it has further set up the Board Sustainability Management Committee in 2022, ensuring that its sustainability agenda is effectively integrated into Public Bank’s operations. It further added the Climate-Related Risk Management Policy and formalised its Climate Risk Appetite Statement guiding the operationalisation of Public Bank’s long term plans to manage climate-related risks.

This is on top of the comprehensive governance mechanism in place, including the Code of Ethics, Whistleblowing Policy and Procedures, Anti-Fraud Policy and the Anti-Bribery and Anti-Corruption Policy.

“We will continue to remain agile to society’s needs with sustainability best practices while continuing to provide superior customer service as well as delivering long term value for the shareholders,” Tan Sri Tay concluded.

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FOR IMMEDIATE RELEASE

28 June 2023

Public Bank Continues To Improve Its Banking Security Features For Its Customers To Combat Scams And Frauds

Public Bank customers continue to receive enhancements to banking security features to combat financial scams.

As part of its on-going effort to strengthen banking security for its customers, Public Bank recently introduced the transaction cooling-off period via PBe internet banking and PB engage MY mobile application for transactions which are deemed abnormal.

“This transaction cooling-off period is one of Bank Negara Malaysia’s (BNM) five key measures for combating financial scams and Public Bank has implemented all five of them. The Bank will continue to be vigilant and working with relevant authorities, to ensure a robust and secure online banking environment for our customers,” said Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek.

Announced in December 2022 by BNM, the five key measures are a transaction cooling-off period, migrating from SMS to one-time passwords (OTP) to a more secure authentication method, single designated device for authorisation, removal of hyperlinks from SMS and email communications and a 24-Hour Cyber Fraud Security Hotline for customers.

Public Bank’s transaction cooling-off period is a precautionary measure that allows the Bank to review and assess certain transactions that display characteristics of abnormal behaviour. This additional step is designed to minimise the risk of unauthorised transactions and potential fraudulent activities, ensuring the safety of customers’ funds.

Customers will be notified on the status of their transactions through various channels such as SMS, e-mail and push notification. Alternatively, customers may log into their PBe to view their pending transactions by clicking “Account” and select “View Pending Verification.”

Second, Public Bank has enhanced security through the migration from SMS one-time password (OTP) authentication to a more secure method to ensure stronger authentication for transactions approval. All users of PBe and PB engage MY are now required to activate a more robust 2-factor authentication method called PB Secure Sign.

Following the activation, customers must enable push notifications on their device to authorise transactions using PB SecureSign. The activation can only be performed via ATM, Public Bank Branch and PBe Customer Support Help Desk at 603-2170 8000. Once activated, the PB SecureSign will undergo a 12 hour cooling off period. Customers can only start approving online transactions after the cooling off period.

Third, to further safeguard customers’ online banking platform security, the PB SecureSign can only be activated on a single device which will be used as the primary device responsible for approving transactions.

Additionally, customers trying to access PBe on outdated platform or incompatible browsers will be directed to the logout page. In addition, support for devices operating on Android 9 and iOS 10 operating systems has been discontinued due to the lack of security updates provided for these operating systems.

Fourth, Public Bank has also implemented the removal of hyperlinks from SMS and email communications. This additional measure aims to safeguard customer’s personal banking information. The Bank has eliminated all clickable hyperlinks in various emails including welcome email, PBe login reminder and PB SecureSign activation email. It is important for customers to remain vigilant and not to respond to any SMS or email with clickable hyperlink as these SMS or email could be sent by the fraudster.

Fifth, a 24-Hour Cyber Fraud Security Hotline is also available offering customers a dedicated channel operating 24/7 enabling them to report scams or suspicious activities related to their accounts.

Notwithstanding, Public Bank continues to actively promote anti-scam awareness throughout its digital touchpoints which includes the Bank’s website, mobile banking app, e-mail blast, social media platforms and the Bank’s online security microsite with various contents.

In the event that customers may notice any irregularities in their bank accounts or suspect any fraudulent activity, they can reach out to the 24-Hour Cyber Fraud Security Hotline at 03-2177 3555 or the National Scam Response Centre at 997 between 8:00 a.m. to 8:00 p.m. daily.

Users can also visit the Public Bank’s Online Security microsite at https://www.pbebank.com/onlinesecurity/index.html to learn about the evolving modus operandi of frauds and scams.

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FOR IMMEDIATE RELEASE

22 June 2023

Public Bank Continues to Proactively Support Small Businesses Amidst Rising Interest Rate

Public Bank remains committed to assist small business borrowers impacted by the recent increase in the Overnight Policy Rate (OPR).

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said Public Bank’s comprehensive suite of repayment assistance to small business borrowers remain widely available.

“Public Bank has been providing repayment assistance to borrowers who are in need including rescheduling and restructuring (R&R) of payment. Borrowers may also request to retain their pre-existing monthly instalment amount prior to the interest rate increase,” Tan Sri Tay said.

Digital application for repayment assistance is available at the Bank’s website until 31 December 2023.

To find out more, customers may contact the Bank at 03-21766008 or visit the Bank’s website at https://www.pbebank.com.

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FOR IMMEDIATE RELEASE

21 June 2023

Public Bank Raised Awareness on Sustainable Development for SME Developers

As part of its holistic approach to sustainability, Public Bank had recently organised a full day seminar aimed at raising awareness on sustainability matters among property developers in the small and medium-sized enterprises (SMEs) category.

Themed ‘Embracing Sustainable Development: The Way Forward for SME Developers’, the event, held at W Hotel, Kuala Lumpur on 14 June 2023, brought together more than 60 SME property development companies from Kuala Lumpur and Selangor as well as subject matter experts from PwC Malaysia, Knight Frank, GreenRE Sdn Bhd and Gamuda Land to share valuable knowledge, guidance and insights on the topic of sustainability with the SME delegates.

Key knowledge and information imparted to the SMEs include issues covering climate change and ESG, the definition and benefits of green buildings from the environmental and social perspectives, the processes involved in applying for green building certification, as well as real-life case studies, all being part of Public Bank’s capacity building initiatives to encourage SME developers to transition to a low carbon economy and embark on sustainable property developments.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said Public Bank adopts a holistic approach in its environmental, social, and corporate governance (ESG) initiatives, beginning with its big picture approach of committing to mobilise RM48 billion in ESG-friendly financing by 2025.

“Proactively, we have signed several memorandums with developers which are listed on Malaysia’s stock exchange to provide a special sustainable financing package to end-finance their green developments. But we believe there is more that we can achieve with an inclusive approach, covering the SME developers. They too, are a force to be reckoned with”, Tan Sri Tay said.

 
As a ‘bank for the public’, Public Bank remains true to its founding philosophy since 6 August 1966 and this seminar is a testament of Public Bank’s dedication to provide awareness for the SME developers about the changing global scenario as well as the opportunity for them to be part of the climate solution.

During the seminar, Public Bank presented the Bank's suite of green financing facilities covering both the supply and demand side to meet the requirements of SME developers and buyers of green properties.

From the supply side, Public Bank is providing financing facilities for an extensive list of eligible green financing solutions including for improving energy efficiency, increasing the use of sustainable material for production and obtaining sustainability certification for SME developers through Public Bank's Green Financing Facilities and Bank Negara Malaysia’s Low Carbon Transition Facility.

Meanwhile from the demand side, Public Bank is providing preferential pricing and other add-on benefits for end-financing of green-certified homes, commercial buildings and industrial premises.

With a commendable turnout of close to 120 delegates from the SME real estate sector comprising mainly of property developers based in the Klang Valley, Public Bank had received positive feedbacks from the delegates who found the seminar beneficial and highly relevant as they had gained valuable information on how sustainability can be incorporated as part of their business strategies. Public Bank will follow through with more initiatives in the near future to raise the awareness of SMEs on climate change and ESG issues and to assist them to make greener decisions.

To find out more about Public Bank’s future events or green financing packages, log on to Public Bank’s website at www.pbebank.com or call PB Customer Service at 03-2170 8000.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek (centre) interacting with the SME delegates during the seminar

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FOR IMMEDIATE RELEASE

1 June 2023

Public Bank Discontinues SMS PAC Authentication for PBe and PB engage MY and Replaces it with PB SecureSign

Public Bank’s Internet (PBe) and Mobile Banking (PB engage MY) application users enjoy further security enhancement with the PB SecureSign after the discontinuation of the SMS PAC (PBe Authentication Code) since 20 April 2023 for all its transactions, including FPX transactions.

With the discontinuation of SMS PAC, it is now mandatory for all PBe and PB engage MY users to activate a stronger 2-factor authentication method known as the PB SecureSign for transaction approval.

PB SecureSign is proven effective in countering one of the fraud tactics known as APK fraud. One of the advantages of using PB SecureSign to approve transaction is its ability to display transaction details such as the beneficiary name and account number in full.

As part of Public Bank’s ongoing commitment to bolster online security measures, Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said Public Bank is always proactive in working hand in hand with customers to address banking security issues together.

“We have provided multiple avenues to facilitate customer’s transition to a more secure feature, where customers can activate the PB SecureSign via ATM, at the Bank’s branches or by contacting PBe Customer Support Helpdesk to ensure that the activation is performed by a genuine user,” Tan Sri Tay said.

After the activation, customers are then required to enable Push Notifications under Settings on their devices in order to approve transactions with PB SecureSign.

Customers are encouraged to remain vigilant in the battle against scams, and it is vital to verify every transaction details displayed before they decide to approve or reject them.

Preventing questionable applications from being downloaded into customers’ smart devices is vital, and customers are advised to refrain from downloading mobile applications via SMS or other messaging applications and social media platforms.

Furthermore, when installing any mobile application, customers must be alert not to give unnecessary permission such as access to View and Control Screen or View and Perform Actions as these will give third party full control to your mobile device.

Besides the discontinuation of SMS PAC and the implementation of PB SecureSign, Public Bank has introduced other counter measures recently including self-deactivation of Internet Banking access feature, call verification for PB SecureSign activation, email alert for login from a new device and increase of transfer limit, providing added security for Public Bank’s customers.

Public Bank remains dedicated to staying at the forefront of security best practices and will continue to invest in research and development to provide robust security features for the customers.

Moving forward, Public Bank will be implementing a cooling off period for PB SecureSign activation and suspicious transactions by mid-2023.

Meanwhile, in the event a fraud took place or if customers noticed any irregularities in their bank accounts, they can contact the 24-Hour Cyber Fraud Security Hotline 03-2177 3555 or the National Scam Response Centre at 997 which operates from 8am to 8pm daily to seek assistance.

Customers can also keep themselves armed with the latest frauds and scams related information by visiting Public Bank’s Online Security microsite at https://www.pbebank.com/onlinesecurity/index.html

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FOR IMMEDIATE RELEASE

29 May 2023

Public Bank and Perodua Ink MoC for Car Financing Facilities

Public Bank Berhad and Perodua Sales Sdn Bhd (Perodua) signed a Memorandum of Collaboration (MoC) to provide financing facilities to Perodua authorized dealers to extend wholesome financial products and services.

Present at the ceremony on 25 May 2023 at Menara Public Bank were Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer and Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank, Dato’ Sri Zainal Abidin Ahmad, President and Chief Executive Officer and En. JH Rozman Jaafar, Chief Operating Officer of Perodua, and other Senior Management staff of both companies.

The collaboration with Perodua will enable Public Bank to interface and facilitate digitalization via online submission of hire purchase end-financing applications to the Bank including uploading of basic application documents and tracking of application status.

Tan Sri Dato’ Sri Dr. Tay Ah Lek in his speech said, “Perodua is also Malaysia’s first and biggest Energy-Efficient Vehicle (EEV) manufacturer. On our part, supporting the growth of the EEV industry is a key pillar of the Bank's climate agenda, where Public Bank had mobilised over RM30 billion in domestic EEV financing by the end of 2022. As part of our ongoing commitment to supporting the growth of the EEV industry, Public Bank has increased its EEV lending target from RM25 billion to RM33 billion by 2025.”

He also added, “Thus, there is strong synergistic potential where Public Bank and Perodua can continue to work together, in not only growing our respective business, but also contributing positively toward ESG initiatives for the betterment of our society and the world.”

Public Bank is committed to contribute to the sustainable development of our communities and fuel the nation’s automotive industry and chart stronger progress together in years to come.

Dato’ Sri Zainal Abidin Ahmad said, this three-pronged deal addresses the need for the current and future Perodua activities.

“I hope this collaboration will further elevate our respective organisations to greater heights,” he said.

From left: Mr. Wong Man Hoe, General Manager of HP Operations Division (Public Bank)

Dato’ Chang Kat Kiam, Deputy CEO (Public Bank)

Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and CEO (Public Bank)

Dato’ Sri Zainal Abidin Ahmad, President and CEO (Perodua)

En. JH Rozman Jaafar, Chief Operating Officer (Perodua)

Cik Noor Zakiyah Binti Hasan, Group CFO (Perodua)

at the signing ceremony of MoC

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FOR IMMEDIATE RELEASE

25 May 2023

Public Bank Group Achieved Pre-Tax Profit Of RM2.21 Billion For The First Quarter Of 2023

For the first quarter ended 31 March 2023, the Public Bank Group recorded pre-tax profit growth of 10.4% to RM2.21 billion, as compared with the corresponding quarter in 2022. Net profit grew at a higher rate of 22.6% to RM1.71 billion during the same period, due to the prosperity tax imposed in the previous corresponding period.  

Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank commented, “The Public Bank Group continued to navigate through the challenges in the evolving operating environment and demonstrated resilience in its first quarter 2023 performance, which was mainly supported by commendable net interest income growth and lower loan impairment allowances.”

Net interest income increased by 7.4%, mainly led by healthy loans and deposits growth which expanded at an annualised growth rate of 5.0% and 9.1% respectively. Coupled with lower impairment allowances during the quarter, the Group sustained a resilient net return on equity of 13.6%.

Despite high inflationary pressure, increase in operating expenses was well under control at 4.7%, underpinned by the Group’s prudent cost management. As a result, the Group continued to achieve an efficient cost-to-income ratio of 33.1% in the first quarter of 2023.

Asset quality remained stable with a low gross impaired loans ratio of 0.5%. Loan impairment allowances were lower by 98.5% to RM1.5 million from RM99.7 million in the corresponding quarter of 2022.

Loans and Deposits Businesses

During the first quarter ended March 2023, the Public Bank Group maintained a healthy loan growth momentum at an annualised growth rate of 5.0% to RM381.6 billion, largely supported by the domestic loan portfolios which grew by an annualised rate of 5.4% to RM356.8 billion.

Domestic loan growth was mainly contributed by residential properties financing, hire purchase financing as well as SME financing, which grew at an annualised rate of 6.1%, 11.5% and 2.7% respectively. This has sustained the Group’s leading market share in the residential properties financing, hire purchase financing and domestic SME lending, which stood at 20.6%, 30.4% and 19.0% respectively.

The Group’s funding and liquidity position remained healthy, supported by a commendable growth in customer deposits at an annualised rate of 9.1% to RM403.7 billion. Domestic deposits rose by 10.2% on an annualised basis to RM376.5 billion, attributable to the consistent growth in retail deposits.

Reflecting its healthy balance sheet, the Public Bank Group continued to maintain a stable gross loan to fund and equity ratio of 80.4% as at the end of March 2023.

Asset Quality

As at the end of March 2023, the Public Bank Group continued to achieve and maintain sound and resilient asset quality as reflected in its low gross impaired loans ratio of 0.5%, a level significantly lower than the domestic banking industry’s average gross impaired loan ratio of 1.7%.

The Group’s loan loss coverage ratio stood comfortably at 217.8%, well above the banking industry’s loan loss coverage ratio of 95.8%. Including regulatory reserves, the Group’s loan loss coverage ratio was higher at 239.6%.

With the ongoing economic recovery, the Group has observed a stable repayment trend from customers. However, amidst the expected economic challenges in 2023, the Group will stay vigilant in managing its loan portfolios and will continue to provide assistance to customers who face repayment constraints.

Non-interest Income

In the first quarter of 2023, non-interest income increased marginally by 0.7% as compared with the corresponding quarter in 2022. The subdued market conditions was cushioned by the Group’s higher foreign exchange profit, stockbroking income as well as investment income.

The Public Bank Group’s unit trust business undertaken by its wholly-owned subsidiary, Public Mutual remained the main contributor to the Group’s non-interest income. Public Mutual recorded a pre-tax profit of RM192.6 million in the current quarter, contributing 8.7% to the Group’s profit. With total assets under management of RM94.4 billion and 179 unit trust funds being managed, Public Mutual continued to capture a large retail market share of 35.7% as at the end of March 2023.

Overseas Operations

In the first quarter of 2023, the Public Bank Group’s overseas operations contributed 8.1% to the Group’s profit, mainly attributed to its Hong Kong and Indochina operations.

Public Bank Vietnam and Cambodian Public Bank continued to deliver strong profit performance, as reflected in the respective double-digit profit growth of 24.5% and 59.8% year-on-year. Indochina will continue to be the Group’s key focus growth area, with continued expansion of branch network as well as broadening of products and services. The Group is targeting to open another 8 new branches in Vietnam to reach a total of 40 branches by year end.   

However, the operating environment for the Group’s Hong Kong operations remain uncertain and challenging despite the lifting of COVID-19 containment measures.

Capital and Liquidity Position

As at the end of March 2023, the Group remained well capitalised with common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 14.6%, 14.7% and 17.7% respectively. Liquidity coverage ratio also remained stable and healthy at 137.1%.

The Group’s capital and liquidity position has remained sound and is resilient to any potential stress condition. The Group will continue to manage its balance sheet prudently in pursuit of its banking business growth. 

Group’s Prospects

The heightened volatility in the financial markets and rising concerns about the health of banking sectors across the United States and Europe raise question on the potential risk of contagion effects. This is likely to further exert downward pressure on the world economy which is already bracing for a challenging 2023 due to elevated inflation, tightening financial conditions and geopolitical tensions. Malaysia as an open economy, will continue to face these headwinds.

Nevertheless, firm domestic demand underpinned by improved employment market, multi-year investment projects, Government’s policy measures and recovery in China’s economy will continue to support the Malaysian economy on the positive growth trajectory, providing a stable and conducive business environment for banking business growth.

Tan Sri Tay concluded, “The Public Bank Group is cognisant of the prevailing challenges and evolving landscape. The Group will remain focused on cost discipline, preservation of sound asset quality and upholding strong corporate governance to safeguard its resilience against adversity. Notwithstanding, the Group will continue to take a proactive approach in embracing growth opportunities arising from the growing economy, digital transformation as well as the growing ESG demand.”

Tan Sri Dato’ Sri Dr. Tay Ah Lek
Managing Director/Chief Executive Officer
Public Bank Berhad

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FOR IMMEDIATE RELEASE

16 May 2023

Public Bank Customers & Merchants Can Now Enjoy the Convenience of Cross Border QR Payments with Singapore

Customers of Public Bank can now perform instant QR payments using its PB engage mobile application for retail transactions with Singapore merchants while PBe QR merchants are also able to receive QR payments from individuals from Singapore with the extension of the DuitNow QR Cross Border Payment Services.

This latest extension to Singapore since March 2023 marks a new milestone for Public Bank’s continuous support for the nation’s endeavor of providing cross border payment connectivity with other countries, beginning with Thailand in June 2021 followed by Indonesia in January 2022 of which Public Bank was one of the earliest participating bank to provide these services.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said the payment linkage would further put the G20’s collective aspiration via the ‘G20 Roadmap for Enhancing Cross-border Payments’.

The G20 Countries together represent around 90% of global GDP, 80% of global trade, and two thirds of the world's population.

“This is a step closer towards providing a faster, cheaper, more inclusive and transparent cross-border payments through the creation of a linked real-time payment systems across the ASEAN region with other members of the G20 Countries. It will also serve as a key enabler to support post-pandemic economic growth and the growing economic activities between Malaysia with Singapore, Thailand and Indonesia,” Tan Sri Tay added.

Public Bank is one of the pioneer Banks in Malaysia to enable DuitNow QR payment to these three countries within the ASEAN region, facilitated by Payments Network Malaysia Sdn. Bhd. (PayNet).

Tan Sri Dato’ Sri Dr. Tay Ah Lek

Managing Director and Chief Executive Officer

Public Bank

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FOR IMMEDIATE RELEASE

15 May 2023

Public Bank’s 57^th Annual General Meeting Held On 15 May 2023

In conjunction with Public Bank’s 57^th Annual General Meeting held on 15 May 2023, the Managing Director, Tan Sri Dato’ Sri Dr. Tay Ah Lek presented a review of the Public Bank Group’s performance in 2022 and the Group’s strategic direction.

Performance Review

Tan Sri Tay said, “On the back of the growing economy, the Public Bank Group achieved another profit milestone in 2022. The Group’s pre-tax profit of RM8.83 billion crossed the RM8 billion mark for the first time.  This represented a growth of 19.9% as compared to pre-tax profit of RM7.37 billion in 2021. Net profit grew by 8.2% to RM6.12 billion, after taking into account the one-off impact of prosperity tax.” As a result, earnings per share increased to 31.5 sen in 2022.

In 2022, the Public Bank Group’s gross loans grew by 5.3% to RM377 billion, with domestic loans growing by 5.2%. The Group continued to maintain its No.1 position in residential property and commercial property financing with market shares of 20.6% and 33.4% respectively. The Group also sustained a 30.2% market share in hire purchase financing. In the domestic small and medium enterprises (“SME”) financing, the Group remains a leading SME financier with 18.6% market share.

In terms of funding, the Public Bank Group’s customer deposits grew by 3.8% to RM395 billion in 2022. Domestic deposits increased at a faster pace of 4.1% to RM367 billion. This was mainly supported by current and fixed deposits growth of 5.8% and 4.2% respectively.

Tan Sri Tay highlighted, “In 2022, the Public Bank Group continued to outperform its banking peers. The Group is the most cost-efficient bank in Malaysia with the lowest cost to income ratio of 31.5%, as compared to the industry’s average cost to income ratio of 44.2%. In terms of asset quality, the Group remains the best amongst all Malaysian banks, with the lowest gross impaired loans ratio of 0.4%. This was significantly better than the banking industry’s gross impaired loans ratio of 1.7%. The Group continued to sustain double digit net return on equity of 12.8%, which was well above the domestic banking peers’ average net return on equity of 10.8%.”

The Public Bank Group’s wholly-owned unit trust management company, Public Mutual, remains a major contributor to the Group’s non-interest income. In 2022, Public Mutual recorded a pre-tax profit of RM780.4 million, contributing 8.8% to the Group’s pre-tax profit. Public Mutual continued to capture a large retail market share of 35.4%, with a total of 179 funds and total net asset value of RM91.8 billion.

The Public Bank Group has prudently set aside pre-emptive provisions to cushion against potential asset quality risks. As at the end of 2022, the Group’s loan loss coverage ratio stood at 272%. This was significantly higher than pre-pandemic level and the current industry’s loan loss coverage ratio of 98%. Including regulatory reserves, the Group’s loan loss coverage ratio would be even higher at 292%.

The Public Bank Group’s capital position remained stable and healthy with Common Equity Tier 1 capital ratio of 14.6% and total capital ratio of 17.6% as at the end of 2022. The Group’s Liquidity Coverage Ratio also stood at a healthy level of 128%, above the minimum regulatory requirement of 100%.

Tan Sri Tay said, “In view of the Public Bank Group’s resilient financial performance in 2022, a third interim dividend of 5 sen was paid in March 2023. Together with the first interim dividend of 8 sen paid in September 2022 and second interim dividend of 4 sen paid in December 2022, shareholders would have received a total dividend of   17 sen per share for 2022. This is higher than 15.2 sen paid in 2021. The total dividends paid amounted to RM3.3 billion, representing 53.9% of the Group’s net profit for 2022. The 17 sen dividend per share also translates to a dividend yield of 3.9% based on Public Bank’s share price of RM4.32 as at the end of 2022.”

The Public Bank Group continues to deliver consistent and superior returns to its shareholders. The stable performance of Public Bank shares coupled with the consistent dividend payout had further increased the value for a long term shareholder.

With total market capitalisation of RM77.06 billion today, Public Bank is the second largest company and the largest non-government linked company on Bursa Malaysia.

Strategies and Directions for 2023

The operating environment is expected to remain challenging. The Malaysian economy is expected to grow moderately supported by resilient domestic demand. Business dynamics continue to evolve in a post pandemic business environment with increasing global economic headwinds. The global headwinds, which include high inflationary pressure and monetary policy tightening, will continue to affect the global and domestic economy. While we remain mindful of the various headwinds, we will continue to balance between maintaining sustainable growth and managing risks.

Tan Sri Tay commented, “In meeting these challenges, we will continue to operate efficiently and maintain prudent credit risk management. We will also sustain strong corporate governance and sound risk management practices. We strive to proactively manage any potential asset quality risks. For customers who may continue to face financial constraints, we will provide further assistance, including the necessary financial support for individuals and SMEs.”

We are committed to support the national sustainability commitment towards a climate-resilient economy. From establishing Climate-Related Risk Management Policy to setting up a Sustainability Roadmap, we have been making good progress in embedding ESG consideration into our operations and strategies. We have also expanded our green and ESG products and services, such as collaborating with property developers to provide financing for green properties as well as promoting financing of energy efficient vehicles. To this end, we have set new commitments to drive our sustainability goals. We target to achieve RM48 billion ESG-friendly financing by 2025, including RM15 billion financing for affordable homes. In terms of the financing for energy efficient vehicles, we have successfully mobilised RM30 billion for such financing as at the end of 2022. This achievement was ahead of our earlier target of RM25 billion by 2025. Therefore, we have increased our energy efficient vehicle financing target to RM33 billion by 2025.

Driving digital transformation is one of the Public Bank Group’s key focus area and part of the Group’s sustainability agenda. The Group is attentive to digital trends and changing customer behaviour, yet also mindful of the associated risks such as cybersecurity threat. With significant investments made over the years in digitalisation, the Group has expanded the range and capabilities of its digital products, channels and eco-systems to provide customers with efficient and convenient banking services. These include implementation of various initiatives for digital payment services in line with industry trend, such as DuitNow Online Banking/Wallets and PBe QR Cross Border Payment services. Public Bank’s mobile banking and internet banking, the PB engage and PBe continue to be enriched with new functions and features. In 2022, the newly registered users of the Bank’s mobile banking, the PB engage grew by a commendable 29.2%. The number of mobile banking transactions also increased by 20.9%. For the Group’s PBe online banking, the number of active users continued to maintain a steady growth of 15.1%.  The Group’s corporate online banking, the PB enterprise also registered impressive growth. In 2022, total new companies registered on PB enterprise grew by a commendable 72.5%, with number of transactions performed on PB enterprise increasing by 40.0%. 

For customers’ convenience, the Group has adopted innovative technology to facilitate online customer onboarding through digital channels. Going forward, the Group will continue to make significant investments in line with its digital roadmap. This will further enhance the Group’s Information and Communication Technology (“ICT”) infrastructure as well as digital capability.

Tan Sri Tay commented, “Cybersecurity remains the Bank’s top priority to provide protection to its customers. The Bank remains vigilant in combating scams and has implemented various measures and initiatives in safeguarding its customers’ online banking transactions. A dedicated complaint channel has been established. The case management operation hours were also extended to 24 hours for customers to report online scams and fraud related matters. To raise customers’ awareness of cybercrimes, the Group has been very proactive in engaging and providing updates to customers through various communication channels. In addition, the Group has been gradually phasing out the SMS one-time password and this is being replaced with Digital Token which provide a more secure transaction.

In 2022, Public Bank has helped 300,000 of our customers from being scammed, by preventing close to 1 million transactions totalling about RM500 million from being fraudulently transferred into mule accounts. Public Bank was able to prevent these fraudulent transactions in a timely manner as a result of the strong system security and robust compliance culture that Public Bank has put in place. Public Bank has also implemented the ‘Kill-Switch’ function, whereby customers are able to deactivate their online banking access immediately via PBe internet banking.”

Tan Sri Tay has also specifically emphasised, “Customers are advised to remain vigilant at all times by never clicking on unknown links and never to disclose their banking information to anyone regardless of any threats by any callers.”

On the Public Bank Group’s strategic direction and outlook, Tan Sri Tay commented, “The operating environment will remain challenging in 2023. Nevertheless, the late Tan Sri Dato’ Sri Dr. Teh Hong Piow has left behind a legacy of banking excellence with solid foundation and strong corporate culture. His legacy will continue to propel the Group to greater heights.

The Group will remain focused on its core business segments and strive to achieve sustainable business growth. The Group will also intensify digital transformation, focus on its sustainability agenda, and continue to sustain its superior asset quality to ensure sustainable earnings growth moving forward. With the Group’s track record of stable and resilient financial performance, the Group is positive that its sound fundamentals and prudent credit practices will enable the Group to continue delivering long term value to its stakeholders.”

Tan Sri Dato’ Sri Dr. Tay Ah Lek

Managing Director/Chief Executive Officer

Public Bank Berhad

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FOR IMMEDIATE RELEASE

3 May 2023

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

Public Bank will increase its Standardised Base Rate (SBR), Base Rate (BR) and Base Lending Rate (BLR) / Base Financing Rate (BFR) by 0.25% effective 8 May 2023, in line with Bank Negara Malaysia’s Overnight Policy Rate (OPR) hike by 25 basis points from 2.75% to 3.00% on 3 May 2023. The Bank’s SBR will be 3.00% in tandem with the OPR while the BR will increase to 3.52% from 3.27% and the BLR/BFR will increase to 6.72% from 6.47%.

At the same time, Public Bank’s fixed deposit rates will also be adjusted upwards, effective on the same date.

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20 April 2023

Public Bank Contributed to TARUMT’s IRSC 2023

Public Bank in supporting the students and researchers’ development of Tunku Abdul Rahman University of Management and Technology (TARUMT) sponsored RM20,000 towards the International Researcher and Student Conference (IRSC) 2023.

The sponsorship mock cheque was presented by Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank to Prof. Ir. Dr. Lee Sze Wei, President of TARUMT on Tuesday, 18 April 2023 at Menara Public Bank.

Tan Sri Dato’ Sri Dr. Tay Ah Lek in his speech during the mock cheque presentation said, “The contribution on IRSC 2023 will provide a platform for researchers and students to be acquainted with industry players. Hence, it will help the students in seeking opportunities for cross border networking and gain insights and inspiration from industry practitioners.”

He also added that the collaboration with TARUMT fulfils Public Bank’s commitment to serve the people and community as part of its ESG initiatives.

The IRSC 2023 will comprise of researcher and student conference, and aims to be a platform for participants to interact, share research findings and common values on diversity, practices of inclusivity, digital transformation, and the pursuit of sustainability through the fostering of valuable networking and relationships.

TARUMT Prof. Ir. Dr. Lee Sze Wei said, “The support from Public Bank will enable researchers and students to keep abreast of latest developments in business trends and research.”

He also thanked Public Bank as it has always been very supportive of its students through its contribution towards students’ development activities which have benefited them immensely throughout the years.

Prof. Ir. Dr. Lee Sze Wei (left) receiving the mock cheque from Tan Sri Dato’ Sri Dr. Tay Ah Lek (right)

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12 April 2023

Public Bank’s ‘DRIVEN TO WIN with PB Mastercard Credit Card’ Campaign Grand Prize Winner Drove Home a Brand New BMW 330e M-Sport

Public Bank’s ‘DRIVEN TO WIN with PB Mastercard Credit Card’ campaign announced Mr. Aniki Tan as its grand prize winner when he drove home a brand new BMW 330e M-Sport.

The ‘DRIVEN TO WIN’ campaign, which commenced from 25 November 2022 to     28 February 2023, was aimed at promoting cashless payment using Public Bank/Public Islamic Bank Mastercard Credit Card/-i among the Cardmembers. It is Public Bank’s continuous commitment to provide seamless and convenient payment solutions to Cardmembers while rewarding them for their strong support and loyalty.

“It was an exciting moment for me as I have been a loyal user of PB Mastercard and every time I swipe my card, I can see myself driving this luxurious car. Thank you Public Bank for organising this campaign!” Mr. Aniki Tan said during the prize giving ceremony held at BMW Wheelcorp Premium Showroom on 7 April 2023, adding that he looks forward to participating in more of such campaigns.

Mr. Aniki Tan was among the 320 other winners who won the various attractive prizes including the Samsung Galaxy Z Flip 4 (256GB), Samsung 65” Crystal UHD Smart TV, Dyson V8 Slim Fluffy+ Vacuum as well as RM88 Monthly Cash Back.

The campaign received a very encouraging response from Cardmembers and it was beyond expectation. Public Bank would like to congratulate all the winners and express gratitude to all Cardmembers who participated in the Campaign.

Public Bank will continue to initiate many more exciting campaigns to reward all valued Cardmembers. If you are not a Cardmember yet, visit the nearest Public Bank branch or apply online for The Card that Gives You More! To find out more on other on-going promotions, log on to Public Bank’s website at www.pbebank.com or call PB Customer Service at 03-2170 8000.

(From left) Mr. Tee Chui Chee, General Manager, Public Bank Card Services,         Mr. Aniki Tan, Grand Prize Winner and Ms. Beena Pothen, Country Manager, Mastercard Malaysia & Brunei

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4 April 2023

Public Bank Collaborates with NCSM on Cancer Awareness Programme

Public Bank has embarked on a CSR collaboration programme with National Cancer Society of Malaysia (NCSM) by sponsoring RM150,000 towards the Colorectal Cancer awareness programme.

The sponsorship mock cheque was presented by Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank to Dr. Murallitharam Munisamy, Managing Director of NCSM on Tuesday, 21 March 2023 at Menara Public Bank.

During the cheque presentation Tan Sri Dato’ Sri Dr. Tay Ah Lek said, “We hope that this collaboration will help create greater awareness on cancer diseases and ultimately bring positive impact in reducing cancer cases in our country.”

He added, “The collaboration is also proof of Public Bank’s commitment to strengthen our Environmental Social Governance (ESG) initiatives in serving the people and community which will continue to be important considerations for businesses and focus in achieving a sustainable and positive impact on the community, where the Bank operates.”

Since colorectal cancer is second most common cancer in Malaysia for all genders after breast cancer, Public Bank hopes the programme will be able to help improve the survival rate amongst the lower income community by increasing access to early screening which would help in the detection of the growth of before they develop into cancer which eventually can save lives and increase the survival rate.

NCSM Managing Director Dr. M. Murallitharan thanked Public Bank for their continuous support towards fighting cancer. He said, “The donation from Public Bank will be channelled towards increasing awareness of colorectal cancer and education of healthy eating habit to combat the disease.”

“Our team will also be on ground conducting a series of programme which will benefit the public at large, particularly the lower income B40 group for early screening, education and adopting healthy lifestyle to minimise the risk of colorectal cancer,” said Dr. M. Murallitharan.

Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and CEO of Public Bank presenting the mock cheque to Dr. M. Murallitharan Munisamy, Managing Director of NCSM and witnessed by Mr. Yeap Chong Wei, NCSM Marketing Director

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FOR IMMEDIATE RELEASE

 30 March 2023

Public Bank Promotes Scam Awareness during Selangor World Kidney Day 2023

In conjunction with the World Kidney Day, Public Bank participated in the Selangor state level event organised by Hospital Serdang in collaboration with National Kidney Foundation at the IOI City Mall Putrajaya on 12 March 2023.

Public Bank sponsored RM12,000 for the event as a contribution towards community empowerment that we hope to enrich the knowledge and understanding regarding nephrology causes and diseases and how to protect our kidney and improve the quality of life.

Public Bank took the opportunity to create greater awareness amongst the public in combating scam and fraud at the one-day event.  Considering that scams and frauds are presently a major issue in the community, the Public Bank booth attracted a lot of interest amongst the public.

The guest-of-honour, Dr. Zaliha Mustafa, Minister of Health paid a visit to our booth and were briefed on the prevalent types of modus operandi of the scammers and fraudsters, how to stay alert and vigilant in protecting oneself and what should be done in the event you become a victim.

Public Bank has been proactive in promoting anti-scam awareness through various roadshows and social media platforms such as PBe Online Security Survey, PeeBee Tips, Pop Up Light Box (an interactive customer education material), E-mail blast and Online Banners to educate customers on the latest security advisories of online banking. The security measures are published through various channels such as Public Bank Website, PB engage, WeChat, YouTube, Branch's Digital Display and Social Media platform. As a continuous effort in providing safe and secure ecosystem to customers, the Bank constantly publish the latest preventive measures in Online Security Microsite.

In the meantime, customers can visit the Public Bank’s Online Security Microsite at https://www.pbebank.com/onlinesecurity/index.html and by staying informed, will help to keep scams and frauds at bay. In the event a suspicious fraud and scam is taking place or if customers notice any irregularities in their bank accounts, they can contact the Case Management Hotline at 03-2177 3555 to seek assistance.

Y.B. Dr. Zaliha Mustafa in front of Public Bank booth

Y.B. Dr. Zaliha Mustafa, Minister of Health being briefed about scams and fraud by Public Bank officer

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FOR IMMEDIATE RELEASE

9 January 2023

Customers and Merchants Stand to Win Cash Prizes when They Use Public Bank’s QR Cross Border Payment Linking Thailand and Indonesia

Public Bank, in collaboration with Payments Network Malaysia Sdn Bhd (PayNet) launched the DuitNow QR Cross Border Payment Campaign to promote usage of Public Bank’s QR Cross Border Payment, applicable for transactions between Malaysia and Thailand (for both Outbound and Inbound Categories) and between Malaysia and Indonesia (For Inbound Category).

For Public Bank customers travelling to Thailand, they will be enrolled in the campaign for the outbound payment category when they perform QR payments by scanning a PromptPay QR in Thailand using their PBe mobile banking app. Meanwhile, Malaysia’s local SMEs merchants will be enrolled in the campaign for the inbound payment category when they accept QR payment from Thai and Indonesian travellers.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Tay Ah Lek said the campaign will further boost the usage amongst travellers from Malaysia, Thailand and Indonesia who appreciate cashless payment connectivity.

“We are pleased to announce this collaboration with our long-time partner, PayNet. We believe that these campaigns will bring even better value to our customers. The campaign signifies the Bank’s continuous commitment to enriching its value propositions with consumer-centric offerings, and we look forward to more collaborations with PayNet to offer further payment systems innovation and convenience for our customers,” Tan Sri Tay said.

For the outbound category, more than 100 cash prizes await customers with the highest volume of transactions during the period from 14 November 2022 to 14 February 2023 with the first prize being RM3,000, while for the inbound category, more than 50 cash prizes await merchants with the highest volume of transactions during the period from 5 December 2022 to 5 March 2023, with the first prize being RM7,000.

To participate in the campaign for the outbound payment category, customers need to subscribe as PB engage users to scan on participating PromptPay QR in Thailand with a minimum spend of RM30. Meanwhile, for the inbound category, merchants in Malaysia are required to subscribe as PBe QR merchants and accumulate a minimum transactional value of RM250 from Thai and Indonesian customers.

As the first Bank in Malaysia to collaborate with PayNet to implement DuitNow QR cross-border payment since June last year, it again became the first Bank to extend its services to allow Public Bank merchants to accept payment from overseas payers while allowing PBe mobile banking users to perform QR payments to merchants overseas.

With the successful launch of Cross Border QR payment linkage with Thailand in mid-2021 and Indonesia in the first quarter of 2022, Public Bank will be launching the next Cross Border QR payment linkage with Singapore by the first quarter of 2023.