Public Bank Corporate Homepage

June 2023

1

Jun 2023

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, Pubic 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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May 2023

29

May 2023

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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25

May 2023

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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16

May 2023

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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15

May 2023

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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3

May 2023

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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April 2023

20

Apr 2023

FOR IMMEDIATE RELEASE

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

Apr 2023

FOR IMMEDIATE RELEASE

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

Apr 2023

FOR IMMEDIATE RELEASE

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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March 2023

30

Mar 2023

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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7

Mar 2023

FOR IMMEDIATE RELEASE

7 March 2023

Public Bank Offers Loan Repayment Relief Of Up To 6 Months Repayment Moratorium For Customers Affected By Floods

Public Bank and Public Islamic Bank are offering repayment relief for loan and financing customers who have been affected by the recent floods in several states in Malaysia.

Public Bank’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Dr. Tay Ah Lek said, “Public Bank stands ready to support customers who have been affected by the massive floods. The repayment relief would alleviate their financial burden and also help them to restore their livelihood.”

The repayment relief includes:

Deferment of monthly instalment for loan and financing of up to 6 months, on a request basis. The repayment relief is applicable to loan and financing facilities such as house financing, hire purchase and credit cards for individual customers, as well as SME loan and financing for affected local businesses.
Waiver of charges on the replacement of banking related documents, such as bank cards and passbooks that have been destroyed or lost in the floods.
Collaborating with Lonpac Insurance Bhd in facilitating and expediting claims to be made by the affected customers on losses covered by insurance policies underwritten by Lonpac.

On top of that, SMEs and micro enterprises affected by floods located in districts identified by Agensi Pengurusan Bencana Negara as flood disaster areas are also eligible to apply for the Bank Negara Malaysia’s Disaster Relief Facility of which Public Bank is a participating financial institution.

This facility is for the purpose of repairs and/or replacement of assets for business use, such as plants and machinery which have been damaged by floods, as well as for working capital purposes.

Contacts

Customers who require the repayment relief as well as more information may visit our Public Bank branches or contact the Bank’s general line at 03-21708000.

For insurance claims related matters, affected customers can contact Lonpac at 03-2262 8688.

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February 2023

27

Feb 2023

FOR IMMEDIATE RELEASE

27 February 2023

Public Bank Group Achieved Pre-Tax Profit Of RM8.83 Billion For 2022 And Declared 5.0 Sen Third Interim Dividend

For the financial year 2022, the Public Bank Group’s pre-tax profit increased by 19.9% to RM8.83 billion, surpassing the RM8 billion mark for the first time. Net profit attributable to shareholders increased by 8.2% to RM6.12 billion after taking into account the one-off impact of prosperity tax.

The Group sustained a resilient net return on equity of 12.8% and efficient cost-to-income ratio of 31.5%. On asset quality, gross impaired loans ratio remained low and healthy at 0.4% as at the end of 2022.

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 2022, the Board of Directors of Public Bank declared a third interim dividend of 5.0 sen per share.”

Operating Results

In 2022, the Public Bank Group delivered an operating profit before loan impairment and other allowances of RM9.20 billion, representing 7.3% growth as compared with 2021. This was attributed to a commendable net interest income growth of 10.2% due to the healthy loans and deposits growth, coupled with the improvement in net interest margin arising from the OPR hikes.

Non-interest income was lower by 7.7%, due mainly to the weak market conditions stemming from high inflationary pressure, tightening of global policy measures and a slowdown in major economies.

Operating expenses increased by 6.8%, reflecting the resumption of many business activities following the full reopening of the economy in 2022.

Loan impairment allowances were lower by 69.6% as the economy recovers from the COVID-19 pandemic. Credit cost stood at 10 basis points in 2022, showing an improvement as compared with 34 basis points in the previous financial year.

Accordingly, the Public Bank Group recorded an increase of 19.9% in profit before tax to RM8.83 billion.

Loans and Deposits Businesses

In 2022, the Public Bank Group’s total loans expanded by 5.3% to RM376.9 billion. Domestic loans grew by 5.2% to RM352.1 billion, mainly contributed by growth in residential properties financing of 7.5% and hire purchase financing of 8.9%. Total domestic loans approval rose by 18.8% in 2022, further strengthening the Group’s leading market share in the residential properties and hire purchase financing which stood at 20.6% and 30.2% respectively. The Group also continued to maintain a leading market share of 18.6% in the domestic SME lending.

On deposits business, total customer deposits grew by 3.8% to RM394.7 billion in 2022. Domestic deposits rose by 4.1% to RM367.1 billion, mainly supported by current accounts and fixed deposits which grew by 5.8% and 4.2% respectively.

The Public Bank Group continued to maintain a healthy balance sheet with a gross loan to fund and equity ratio of 81.1% as at the end of 2022.

Asset Quality

As at the end of 2022, the Public Bank Group continued to sustain a resilient gross impaired loans ratio of 0.4%, significantly lower than the domestic banking industry’s average gross impaired loan ratio of 1.7%.

The Group’s loan loss coverage ratio stood at 272.0%, well above the banking industry’s loan loss coverage ratio of 98.2%. Including regulatory reserves, the Group’s loan loss coverage ratio was higher at 291.8%.

The Malaysian economy remained on track in post pandemic recovery and the Group continued to observe a stable repayment trend from customers. While challenges remain in the economy, the Group will continue to monitor closely the repayment trend and is fully committed to continue providing assistance to customers who require further support.

Non-interest Income

In 2022, non-interest income was lower by 7.7% on the back of weak market conditions. Nevertheless, foreign exchange business achieved commendable growth of 21.0%.

In 2022, 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 RM780.4 million in 2022, contributing 8.8% to the Group’s profit. As at the end of December 2022, Public Mutual continued to capture a large retail market share of 35.4%, with a total of 179 unit trust funds and total assets under management of RM91.8 billion.

Overseas Operations

In 2022, the Public Bank Group’s overseas operations contributed 7.5% to the Group’s profit, mainly attributed to its Hong Kong and Indochina operations.

In 2022, Public Bank Vietnam achieved a profit growth of 23.4%, while Cambodian Public Bank recorded profit growth of 17.9%. To continue capturing good growth opportunities in Indochina, the Public Bank Group will continue to expand its branch network in the region. In Vietnam, following the opening of 3 new branches in 2022, the Group is targeting to open another 8 new branches in 2023 to reach a total of 40 branches. The Group will also continue to expand its range of banking products and services in Vietnam.

Capital and Liquidity Position

The Public Bank Group will continue to be proactive in its capital management to ensure an optimum level of capital is being maintained at all times to support its business growth. As at the end of December 2022, the Group’s capital position remained healthy with common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 14.6%, 14.6% and 17.6% respectively, after deducting the third interim dividend. Liquidity coverage ratio also remained stable and healthy at 127.7%.

Dividend

The Board of Directors declared a third interim dividend of 5.0 sen per share. The third interim dividend will be paid on 22 March 2023 based on the dividend entitlement date of 14 March 2023. Together with the total of first and second interim dividend of 12.0 sen per share declared earlier, the full year dividend for 2022 amounts to 17.0 sen. This represents a total dividend payout of RM3.30 billion or 53.9% of the Group’s net profit for 2022.

Group’s Prospects

Malaysia’s economic growth in 2023 is projected to remain on a positive trajectory supported by resilient domestic demand. However, global headwinds caused by elevated inflationary pressure, tighter monetary policy conditions, persistent supply disruption and geopolitical tensions are likely to continue to weigh on the economy.

Tan Sri Tay said, “The persisting economic challenges will continue to have spillover effects on the banking sector. Consumer and business sentiments will continue to be affected by the high inflationary pressure and softening global growth. However, outlook on the Malaysian economy remains positive, and this will continue to support a conducive environment for banking business growth.

As the Group continues to grow its retail and commercial banking business, it will remain focused on digital transformation, sustainability agenda as well as staff upskilling and reskilling, to ensure sustainable earnings growth and safeguard stakeholders’ interests at all times.”

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

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24

Feb 2023

FOR IMMEDIATE RELEASE

24 February 2023

Comments On The Budget 2023

The coming year will continue to be one fraught with challenges, as stubborn inflationary pressures and consequent monetary tightening globally will lead to weaker consumption spending and slower economic activity. To this end however, all stakeholders of the nation must stand united as we work on driving Malaysia forward in this post-pandemic era towards a more sustainable period of stronger growth. We are most encouraged by the Government’s lead and refreshed vision in setting out a new course with this re-tabled Budget 2023 expenditure plan.

The Public Bank Group has steadfastly and actively facilitated growth of the nation through the years. We remain committed on intensifying our efforts further as Malaysia works on regaining its footing as an economic powerhouse and high-income nation within the region. Equally important however is the nation’s future being safeguarded through the exercise of prudence over finances, and we are encouraged to note that the government is prioritising the lowering of its budget deficit on a path to sustainable growth with a lower expenditure bill of RM386.1 billion.

The Honourable Prime Minister’s MADANI policy framework encompassing the spirit of inclusiveness is evident in 35.2% or about RM136 billion allocated for programmes and projects under the social sector and 19.1% or about RM74 billion towards reshaping the economic landscape of the country. This will continue to ensure income gap between the Rakyat and the development gap among the states are reduced further.

Government agencies’ continued provision of financing and guarantees amounting to RM40 billion for the benefit of Micro, Small and Medium-sized Enterprises (MSMEs), Bank Negara Malaysia’s RM10 billion financing facility for SMEs and guarantees of up to RM20 billion provided by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will provide much needed lifts to businesses.

The government’s allocation of RM8 billion towards Sumbangan Tunai Rahmah (STR) will help alleviate difficulties of 8.7 million people in the B40 category burdened by rising living costs. Personal income tax cuts amounting to RM900 million will see at least 2.4 million people in the M40 category benefitting. In a surprising but highly-compassionate move, the government will deposit RM500 into the accounts of Employee Provident Fund contributors aged between 40 and 54 with savings of less than RM10,000 in their accounts, expected to benefit 2 million members, involving an allocation of RM1 billion. In short, Budget 2023 is broad base and adequately addresses the current needs of all strata of society. Issues like food security and preparedness for natural disasters are also being addressed, in addition to infrastructure spending covering healthcare and education, and digital infrastructures to address development and digital gaps.

Climate change is no longer a topic reserved for conversations of scholars, activists or conservationists, its damaging effects already evident here in Malaysia in recent years with distinct changes in weather patterns and unprecedented flooding in areas never seen before, amongst others. On this note, the Government’s continued focus on sustainability-based initiatives in Budget 2023 is lauded, with ongoing emphasis given towards enhancing green investments and projects in line with the United Nation’s Sustainable Development Goals (SDG). The Public Bank Group reaffirms its commitment in partnering the government and various stakeholders towards advancing these agendas.

We continue to be fully supportive of the government’s initiatives as laid out in Budget 2023, a well-thought and comprehensive plan which we believe will strengthen the country’s post-pandemic recovery while also 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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15

Feb 2023

FOR IMMEDIATE RELEASE

15 February 2023

Public Islamic Bank Partners with Itramas Technology Sdn Bhd for Installation and Financing of Solar Photovoltaic (PV) Systems for Renowned Local Brand Jeruk Madu Pak Ali

In its continuous effort to promote green financing facilities, Public Islamic Bank Berhad has successfully completed the financing of Solar PV Systems for a renowned local brand Jeruk Madu Pak Ali at its parent company Pak Ali Food Industries Sdn Bhd’s main factory located in Simpang Ampat, Pulau Pinang.

Jeruk Madu Pak Ali is an established brand name started by the company’s founder, the late Haji Ali bin Haji Omar in 1985. The “Pak Ali” brand is amongst the biggest retailers of preserved fruits in Malaysia, with presence in almost all states across the nation.

The Solar panel system was installed by Itramas Technology Sdn Bhd, one of the Bank’s panel Solar companies with the installed size of 182.52 kWp and is expected to benefit the company a potential savings of up to 80% on electricity. Pak Ali Food group of companies will gradually convert to solar panel systems to take advantage of the long term savings and incentives under this scheme, while also supporting the ESG proposition.

Public Islamic Bank has been aggressively promoting Solar financing for both residential and commercial sectors. The Solar financing program is among the many initiatives undertaken by the Bank to contribute positively towards the well-being of our society as part of its Value Based Intermediation (VBI) related products and services.

In supporting the nation’s agenda towards realising the net zero carbon emissions by 2050, Public Islamic Bank will continuously play its role as financial institution that provides a wide range of green financing offerings for both retail and commercial customers.

For further details, customers may visit any of PBB/PIBB branches, log on to PIBB’s website at www.publicislamicbank.com.my or call the toll-free number at 1-800-22-7777 during normal working hours. Terms and conditions apply.

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January 2023

9

Jan 2023

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.

This campaign is opened to all Malaysian or Malaysian residents who have Public Bank accounts. Terms and conditions apply and for more information on the campaign, customers can visit https://www.pbebank.com/.

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Media Release