Media Release
FOR IMMEDIATE RELEASE
29 November 2023
Public Bank Group Achieved Pre-Tax Profit of
RM6.47 Billion for the First Nine Months Ended September 2023
The Public Bank Group posted pre-tax profit of RM6.47 billion and net profit of RM5.03 billion for the first nine months of 2023, recording growth of 2.6% and 14.3% respectively compared with the corresponding period in 2022.
Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank commented, “The Public Bank Group continued to demonstrate resilience in its financial performance for the first nine months of 2023, with its loans and deposits businesses sustaining a positive growth trajectory. The Group also continued to navigate through the challenging operating environment with prudent cost management and stable asset quality, achieving a commendable net return on equity of 13.1%”.
For the first nine months of 2023, net interest income increased by 0.7% and non-interest income grew by 3.4% as compared with the corresponding period in 2022.
The Group remained prudent in cost management and continued to sustain an efficient cost-to-income ratio of 33.7% in the first nine months of 2023.
Gross impaired loans ratio remained stable at 0.58%, reflecting the resilient risk profile of the Group’s loan portfolio. Loan impairment allowances declined by 78.3% as compared with the previous corresponding period, while loan loss coverage ratio continued to stay at a prudent level of 186.9% as at the end of September 2023.
Loans and Deposits Businesses
During the first nine months of 2023, the Public Bank Group’s total loans increased at an annualised growth rate of 5.9% to RM393.6 billion. The Group’s domestic loan portfolio recorded a strong annualised growth rate of 5.7% as compared with the banking industry growth rate of 4.1% during the same period.
Domestic loan growth continued to be driven by residential properties financing, hire purchase financing and SME financing, which grew at an annualised rate of 6.4%, 10.8% and 1.5% respectively. The Group also continued to maintain its market leader position in these key financing segments, with 20.5% market share in residential properties financing, 30.5% in hire purchase financing and 18.4% in SME financing. Total newly approved domestic loans increased by 10.2% for the first nine months of 2023 as compared with the same period last year, supporting a healthy loans pipeline going forward.
Total customer deposits grew at an annualised rate of 4.7% to RM408.6 billion. Domestic deposits rose by 4.6% on an annualised basis to RM379.7 billion, supported by the consistent growth in retail deposits. As at the end of September 2023, the Group continued to maintain a stable gross loan to fund and equity ratio of 81.9%.
Asset Quality
As at the end of September 2023, the Public Bank Group’s gross impaired loans ratio stood at 0.58%, which was significantly lower than the domestic banking industry’s average gross impaired loans ratio of 1.72%.
Despite its sound asset quality, the Group continued to maintain a prudent level of provision with a loan loss coverage ratio of 186.9%, which was well above the banking industry’s loan loss coverage ratio of 91.2%. Including regulatory reserves, the Group’s loan loss coverage ratio was higher at 215.4%.
Non-interest Income
Non-interest income grew by 3.4% to RM1.87 billion in the first nine months of 2023, primarily contributed by foreign exchange and stock-broking businesses, which increased by 29.5% and 22.5% respectively as compared with the corresponding period in 2022.
Public Mutual, the Public Bank Group’s wholly-owned unit trust fund management subsidiary, remained the main contributor to the Group’s non-interest income. For the first nine months of 2023, Public Mutual recorded a pre-tax profit growth of 2.1% year-on-year to RM592.8 million, contributing 9.2% to the Group’s profit. As at end-September 2023, Public Mutual continued to capture a large retail market share of 35.1% with a total of 181 unit trust funds and net asset value of funds under management of RM95.0 billion.
Overseas Operations
In the first nine months ended September 2023, the Public Bank Group’s overseas operations contributed 7.5% to the Group’s profit, mainly from its Hong Kong and Indochina operations.
Public Bank Vietnam Limited and Cambodian Public Bank Plc continued to deliver strong profit performance, as reflected in the profit growth of 8.5% and 34.3% respectively. The Group remains optimistic on its regional business expansion in Indochina and will continue to expand its branch network and embrace effective growth strategy to further strengthen its business synergy in the region.
The Group’s operations in Hong Kong remained challenging amid global headwinds that weighed on the banking operating environment. The Group has remained highly vigilant to credit risks, while continuing to pursue and capitalise on business opportunities.
Capital and Liquidity Position
As at the end of September 2023, the Public Bank Group sustained a healthy capital level with common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 14.5%, 14.5% and 17.4% respectively. Liquidity coverage ratio remained above the regulatory requirement, at a healthy level of 131.4%.
Group’s Prospects
On the global landscape, the world economic growth is expected to remain challenging. China’s economic activities are expected to grow following the reopening of its economy, although growth would be slower-than-expected. Most major economies continue to face headwinds stemming from tighter financial market conditions, downtrend in external trades, slower momentum in major economies and protracted geopolitical tensions.
On the domestic front, the Malaysian economy is expected to remain on a stable growth trajectory supported mainly by domestic demand, improving labour market conditions, tourism activities and further progress of investment projects. Meanwhile, the Malaysian economy is not insulated from global challenges stemming from weaker-than-expected global growth and more volatile global financial market conditions.
Tan Sri Tay said, “The Malaysian economy has remained on a positive growth path, despite prevailing macro uncertainties in the external front. The Public Bank Group remains fully committed to further strengthen its financial intermediary role as well as contribute to national development and economic growth. The Group will continue to capture valuable synergies from the business environment. There is continued financing demand for property and car ownership as well as SME businesses. The Group also sees emerging opportunities from the development in the ESG landscape and digital transformation. With effective implementation, the recent New Industrial Master Plan 2030 and Mid Term Review of the 12th Malaysian Plan are expected to further strengthen the country’s growth prospects.”
Tan Sri Tay concluded, “The Public Bank Group will continue to operate efficiently, maintain prudence in its management of credit risk as well as preserve its sound corporate governance and risk management practices. The Group’s agility supported by its healthy capital and liquidity position coupled with its resilient asset quality and prudent loan loss reserves will enable the Group to generate sustainable profit through challenging times and business cycles.”
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FOR IMMEDIATE RELEASE
8 November 2023
Have an Electrifying Journey with the Tesla Model 3 with Public Bank’s all-new PB Visa Signature Credit Card
Public Bank continues to provide customers with Environmental, Social and Governance (ESG) products with the latest credit card campaign offering an electric vehicle, the Tesla Model 3 to the winner of a campaign, together with five electric scooters to promote green mobility.
Held in conjunction with the launch of the refreshed PB Visa Signature Credit Cards with updated features with the integration of sustainability considerations, the card not only features Public Bank’s official Environmental, Social and Governance (ESG) logo on the card design, but is also made from plant-based materials which helps to reduce card production carbon footprint by 10 grammes.
“Form follows function, and the PB Visa Signature Credit Card is thoughtfully curated to support the adoption of our customers’ environmentally-friendly habits,” said Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek.
Mr. Ng Kong Boon, Visa Country Manager for Malaysia, said: “There is greater importance placed on responsible consumption and making sustainable choices among consumers in Malaysia. We are excited to collaborate with Public Bank in promoting payment cards and digital wallets, which are not only more convenient but also more environmentally friendly than traditional cash1 . Our aim is to inspire and encourage sustainable consumption through these cashless methods.”
Tan Sri Tay elaborated further that customers will be rewarded with 10 times Green Points when they spend on ESG-related purchases, such as electric vehicles charging, public transportation, used merchandise stores, bicycle stores, tuition fees and solar panels installation.
The Green Points can then be used to redeem items, vouchers or air miles from PB Preferred Redemption Catalogue.
Further elevating cardmembers travel experience, they will also earn 3 times points for overseas spend as well as enjoy complimentary access to selected Plaza Premium Lounge outlets and up to RM500,000 automatic travel insurance.
Being a bank for the public, Public Bank has the concern of all its customers with the rising cost of living and continues with the credit card’s existing 3% Cash Back on online, grocery and dining transactions, catering to the customers’ various lifestyle needs.
To further celebrate the launch, Public Bank is also giving away 14 units of Samsung Galaxy Z Fold5 and Cash Back of over RM100,000 where cardmembers enjoy up to 8% Cash Back when they pay for utilities, insurance and overseas transactions. These promotions are valid until 30 April 2024 and all cardmembers need to do is just spend using their PB Visa Signature Credit Card to earn contest entries.
To find out more on the promotion, log on to Public Bank’s website at www.publicbankgroup.com or call PB Customer Service at 03-2170 8000.
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1 The Visa Consumer Payment Attitudes Study was conducted in October 2022 by CLEAR with 1,000 Malaysians aged 18-65 years of age. This is part of a regional research project conducted in Southeast Asia on 6,550 consumers across 7 markets.
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FOR IMMEDIATE RELEASE
2 November 2023
Public Bank Offers Exquisite Limited Edition Gifts ‘PB Golden Fortune Brings You Mystifying Fortune with Liuli Elegance’
In conjunction with the forthcoming Chinese New Year Celebration, Public Bank is pleased to launch the ‘PB Golden Fortune Campaign’ which is open to all new and existing individual Public Bank customers. The Campaign offer period is from 1 November 2023 to 29 February 2024.
Limited edition Liuli Bowls Sets (Gifts) will be offered under the Campaign. Liuli is a type of crystal art that has its origin in ancient China. It involves a specific technique of casting crystal in colourful and intricate designs. Liuli is valued for its translucency and the ability to capture intricate details.
Customers can participate in the Campaign with the purchase of Unit Trust Funds (UT) or Single Premium Insurance / Single Contribution Takaful products and at the same time place deposit in selected Current / Savings Accounts in order to get the exclusive gift(s). Gifts are only available on first-come, first-served basis, while stock lasts.
PB Golden Fortune Campaign is designed for customers who are looking for a diversified investment portfolio. Customers can choose from a vast selection of UT that cater to various investment strategies and risk tolerance levels in accordance with their risk appetite in order to achieve their financial goals. Customers can also purchase Single Premium Investment-Linked Insurance Plan or Shariah-Compliant Single Contribution Investment-Linked Takaful Plan that provides insurance coverage / Takaful protection upon death or Total and Permanent Disability (TPD) and investment returns.
To find out more about Public Bank campaigns, customers are welcomed to visit any of our PBB branches or log on to PBB website. Terms and conditions apply.
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FOR IMMEDIATE RELEASE
25 October 2023
Public Bank Raised Awareness on Sustainable Development for Property Developers in the Northern Region
Public Bank had recently organised a full day seminar aimed at raising awareness on sustainability matters among the Northern Region property developers in the small and medium-sized enterprises (SMEs) category, following its maiden seminar launched about four months ago in Kuala Lumpur with positive response from Kuala Lumpur and Selangor property developers.
Furthering its holistic approach to sustainability, the seminar themed “Embracing Sustainable Development: The Way Forward for SME Developers,” held at G Hotel Gurney, Penang on 18 October 2023, saw the participation of more than 180 delegates from property developers from Perak, Penang, Kedah and Perlis, as well as representatives from the Real Estate and Housing Developers Association Malaysia (REHDA).
The SME delegates’ enthusiasm were fuelled with the presentations by subject matter experts from PwC Malaysia, Knight Frank, GreenRE and EcoWorld to share sustainability best practices, trends to practical approaches from various perspectives of sustainability, including issues covering climate change and ESG, the definition and benefits of green buildings from the environmental and social perspectives, to the processes involved in applying for green building certification.
Real-life case studies were also presented, as part of Public Bank’s capacity building initiatives to encourage property 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 is looking forward to work closely with property developers to fulfil their environmental, social, and corporate governance (ESG) initiatives.
“This seminar is one of our initiatives to raise awareness on sustainability matters among property developers. When the why is clear, the how is easy,” Tan Sri Tay said, adding that Public Bank adopts a holistic approach in its environmental, social, and corporate governance (ESG) initiatives, including its firm commitment of mobilising RM48 billion in ESG-friendly financing by 2025.
Having signed several memorandums in 2022 with property developers to provide a special sustainable financing package to green property buyers, Public Bank’s holistic approach to sustainable development covers both the supply and demand side to meet the requirements of property developers and buyers of green properties.
Property developers can apply for Public Bank's Green Financing Facilities and Bank Negara Malaysia’s Low Carbon Transition Facility which cover an extensive list of eligible green financing solutions, including for improving energy efficiency, increasing the use of sustainable materials for production and obtaining sustainability certification.
Concurrently, buyers of green properties can also enjoy Public Bank’s preferential pricing and other add-on benefits for end-financing of green-certified homes, commercial buildings and industrial premises.
Providing feedback on the event, Chairman of REHDA Kedah and Perlis, Mr. Yeoh Su Guan said the seminar had increased the property developers’ understanding on sustainability matters.
“As the nation moves towards net zero and further embrace ESG, we applaud Public Bank’s initiative in organising this event and we are looking forward to the next event,” he said.
Dato’ Seri Jerry Chan Fook Sing, Executive Chairman of property development company Asas Dunia Berhad, said sustainable development is a very big topic and Public Bank’s effort to make ESG issues more understandable and less daunting is laudable.
“Participants have achieved greater clarity after attending this event by Public Bank,” said Dato’ Seri Jerry Chan, who is also the past Chairman of REHDA Penang Chapter.
Adding to that, Dato’ Chan Soo How, Divisional General Manager of Eco North, EcoWorld said sustainable development best practices will continue to gain popularity.
“From the responses and enthusiasm from the delegates today, we are proud to be part of Public Bank’s effort to raise awareness on sustainable development,” Dato’ Chan said.
With these positive feedbacks, Public Bank will further accelerate its capacity building initiatives and develop suitable programmes to assist our customers to make greener decisions.
To find out more about Public Bank’s future sustainability 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.
SME delegates listening attentively to the presentation by an expert speaker
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FOR IMMEDIATE RELEASE
13 October 2023
Comments On The Budget 2024
The global landscape continues to be coloured by various challenges, with geopolitical stress adding to stubborn inflationary pressures and tighter monetary conditions. While Malaysia has not been spared with recent economic indicators exhibiting weaknesses, it is highly encouraging to note that more significant damage has been curtailed through astute stewardship by the Government and Bank Negara Malaysia, amongst others. To this end, Budget 2024 continues from the various progressive policies rolled out in recent months, underpinned by the Honourable Prime Minister’s MADANI framework that encompasses the spirit of inclusiveness in driving Malaysia toward a more sustainable period of stronger growth.
The Public Bank Group is intricately intertwined with the development of Malaysia, with a long-standing history of actively facilitating growth of the nation over the decades. We remain as committed today in support of the Government’s aspirations on reclaiming our footing as an Asian economic powerhouse.
While Budget 2024 will see a total expenditure bill of RM393.8 billion, the Government’s resolve on continuing to champion fiscal prudence is to be applauded. Balancing the diverse needs of all can be a tall order. The Government’s success in achieving this with Budget 2024 should therefore be commended. Issues like high living costs, implementation of socio-economic measures to uplift the poor and low-income groups, empowerment of small-scale businesses, economic reforms, promotion of investments, enhancement of food security, affordable housing, improvement of basic public infrastructure and essential public services were addressed, amongst many others.
For those in need, various social assistance frameworks have been strengthened through wealth re-allocation from subsidy rationalisations. With an estimated 20% of the M40 group having fallen into the B40 category due to the COVID-19 pandemic, it is imperative that social safety nets be widened. On this note, allocation to the Sumbangan Tunai Rahmah (STR) initiative will be increased to RM10 billion from RM8 billion, benefitting 9 million recipients. For 2024, a total of RM58.1 billion will be set aside for the purpose of financing various aids to the Rakyat, encompassing subsidies, incentives and financial aid.
We welcome the continued support extended to the Micro, Small and Medium-sized Enterprises (MSMEs). RM1.5 billion will be set aside by Government-Linked Corporations (GLCs) and Government-Linked Investment Corporations (GLICs) to encourage start-ups including bumiputera MSMEs to venture into High Growth High Value industries. RM100 million in the form of grants to support digitalisation and RM900 million in financing support provided by Bank Negara Malaysia to encourage MSMEs to automate and digitalise will strengthen resilience of our SMEs, future-proofing our economy in the process.
Climate-related issues will be at the forefront of many decisions in the years ahead. Studies have shown Malaysia to be amongst the most vulnerable regions in Southeast Asia to the effects of climate change. Inaction is no longer an option. The Government’s pioneering plan for a RM1 billion Biodiversity-based Sukuk is a welcome move. The Public Bank Group is well underway in embarking on sustainability-based initiatives, reducing carbon emissions from our operations and undertaking responsible lending practises, amongst others.
Budget 2024 adequately addresses the needs of today for the challenges of tomorrow, and is broad-based. We continue to be fully supportive of the Government’s initiatives in this well thought-out plan which will continue to strengthen the country’s economic fundamentals, while enhancing the well-being of the Rakyat.
Tan Sri Dato’ Sri Dr. Tay Ah Lek
Managing Director/Chief Executive Officer
Public Bank Berhad
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