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:
- Pn. Noorshiba Mohamad, Deputy General Manager/Head of SJKP, SJPP
- Ms. Doris Lai Yee Foong, General Manager, Guarantee Schemes Management Operations, SJPP
- Dato’ Sulaiman Abd Manap, Senior Chief Operating Officer, PBB
- Pn. Juanita Rusmini Abdul Jalil, Chief Operating Officer, SJPP
- Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director/Chief Executive Officer, PBB
- En. Azlan Mohd Agel, Senior General Manager, Guarantee Schemes Management, SJPP
- Dato’ Chang Kat Kiam, Deputy Chief Executive Officer, PBB
- 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:
- Wong Man Hoe, General Manager of HP Operations Division, Public Bank
- Dato' Chang Kat Kiam, Deputy CEO of Public Bank
- Tan Sri Dato' Sri Dr. Tay Ah Lek, Managing Director and CEO of Public Bank
- Roslan bin Abdullah, CEO of Proton Edar Sdn Bhd (PESB) and Board Member of Pro-Net
- Zhang Qiang, CEO of Pro-Net
- Wang Huaibing, Board Member of Pro-Net
at the signing ceremony in Menara Public Bank on 9 August 2023
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