Public Bank Group Achieved 9.3% Growth In Net Profit Attributable To Shareholders To RM3.57 Billion For The First Nine Months Of 2015

October 2015

23

Oct 2015

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

23 October 2015

Comments On The Budget 2016

Faced with increased uncertainties and volatilities in the current economic and financial environment, we recognise that the crafting of Budget 2016 is indeed a challenging task as it requires a balancing act of sustaining economic growth and addressing issues of rising cost of living, while ensuring continued fiscal prudence.

On the Federal Government finance, we support the Government’s firm and continued commitment to address the country’s fiscal challenge by further reducing the budget deficit to 3.1% of GDP, amid the more subdued growth in its revenue base. The continued discipline in managing the Federal Government’s operating expenditure should augur well towards the efficient utilisation of the Government’s income and strengthening its fiscal position.

We welcome the Government’s pragmatic measures to support a sustainable economic growth. The continued engagement on investing in large-scale and high-impact development projects, infrastructure spending, as well as measures in energising the small and medium enterprises should create multiplier effects that will bode well for the economy and build capacity for the future.

We are glad that Budget 2016 continues to put priority on raising productivity and innovation, as well as enhancing our human capital. These are critical ingredients for Malaysia to progress towards becoming a high-income advanced economy, because such a status of success should not just be measured by capital wealth and economic statistics, but more importantly the overall quality and well-being of our people. We certainly hope all the planned and proposed measures in these areas will effectively be implemented.

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

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22

Oct 2015

For Immediate Release

22 October 2015

Public Bank Group Achieved 9.3% Growth In Net Profit Attributable To Shareholders To RM3.57 Billion For The First Nine Months Of 2015

Chairman’s Review

“The Public Bank Group posted another favourable set of financial results for the third quarter of 2015”, announced Tan Sri Dato’ Sri Dr. Teh Hong Piow, Founder and Chairman of Public Bank.

Tan Sri Teh highlighted that, “For the first nine months ended 30 September 2015, the Public Bank Group reported 9.3% year-on-year growth in the net profit attributable to shareholders to achieve RM3.57 billion. The Group’s pre-tax profit grew by 9.1% to RM4.63 billion during the same period. These results were driven by sustained growth performance in the Group’s loan and deposit, as well as the Group’s non-interest income which posted 20.7% growth in the first nine months of 2015. Gains arising from favourable foreign exchange movement in respect of the Group’s foreign operations have also partially contributed to the profit growth for the period.”

Although the operating environment is getting more challenging, with subdued sentiment and confidence, the Public Bank Group continued to demonstrate resilience in performance by achieving a commendable annualised loan growth of 12.5% and an annualised deposit growth of 9.5%.

Tan Sri Teh further added that, “The Public Bank Group continues to stand out amongst its Malaysian banking peers by achieving a high net return on equity of 16.9%. The Group’s asset quality and cost efficiency continued to be the best amongst its domestic banking peers with the lowest gross impaired loan ratio of 0.53% and cost-to-income ratio of 30.7% in the first nine months of 2015.”

Sustaining Growth Momentum in Loans and Deposits

For the first nine months ended 30 September 2015, the Public Bank Group sustained a healthy loan growth momentum at an annualised rate of 12.5%. Domestic lending business grew at an annualised rate of 10.5% over the same period, outpacing the domestic banking industry’s annualised loan growth rate of 8.2%.

Lending to the retail banking segment remained the key focus of the Public Bank Group, with extension of credit mainly to small and medium enterprises as well as for purchasing of residential properties and passenger vehicles. As at the end of September 2015, the Group’s retail loan portfolio collectively accounted for 86% of its total loans. The Group’s lending to small and medium enterprises recorded an annualised growth of 16.3% in the first nine months of 2015.

Tan Sri Teh added that, “The Public Bank Group’s funding and liquidity position remained supportive of its lending activities, backed by its strong retail deposit franchise with a large domestic depositor base of over 5 million customers. The Group’s total customer deposits grew at an annualised rate of 9.5%, with domestic customer deposits growing at an annualised rate of 7.4%, which was significantly higher than the domestic banking industry’s annualised deposit growth of 0.4%. ”

The healthy domestic deposit growth was mainly contributed by steady inflow of core deposit comprising fixed deposits, low cost savings and current accounts, which grew by an annualised rate of 12.9%. As a result, the Group continued to maintain a healthy loan-to-deposit ratio of 89.8% as at 30 September 2015.

Commendable Growth in Non-Interest Income

Non-interest income of the Public Bank Group grew by 20.7% in the first nine months of 2015 as compared to the corresponding period in 2014, mainly driven by income from higher unit trust business, foreign exchange related transactions and transactional banking services.

Tan Sri Teh said that, “The Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to register a favourable performance during the period and contributed 33.8% to the total non-interest income of the Group for the nine months period ended 30 September 2015. As at 30 September 2015, Public Mutual had 119 funds with total net asset value of RM64.2 billion under its management. It remained as the market leader in the private unit trust business, capturing 48.4% of the retail market share as at the end of August 2015, with 58.8% and 60.7% market share in the equity and Islamic unit trust fund sectors respectively.

Prudent Cost Management

Tan Sri Teh highlighted that, “The Public Bank Group remained the most cost-efficient bank in Malaysia with its cost-to-income ratio of 30.7% in the first nine months of 2015 as compared to the banking industry’s average ratio of 45.5%.”

“To ensure cost sustainability amidst the challenging business landscape, the Public Bank Group will continue to practise prudent cost discipline, deploy adequate resources to review and improve its business processes, and ensure optimum utilisation of its infrastructure to further enhance efficiency and productivity while ensuring strict compliance with internal operation standards and procedures,” added Tan Sri Teh.

Upholding Asset Quality

“Despite the double-digit growth in its loan portfolio year after year amidst the continuously challenging environment in the markets in which it operates, the asset quality of the Public Bank Group remained resilient with a low gross impaired loan ratio of 0.53% as at the end of September 2015, significantly lower than the Malaysian banking industry’s gross impaired loan ratio of 1.6%,” said Tan Sri Teh.

The strong asset quality of the Group is due to a combination of preventive and proactive measures taken such as establishing strict and prudent credit policies, advocating strong discipline and “know your customer” culture in the credit assessment and approval processes as well as ensuring effective and efficient recovery processes.

Tan Sri Teh added that, “The Public Bank Group's loan loss coverage ratio stood at 130.8%, which was higher and more prudent than the banking industry's coverage ratio of 97.6%.”

Overseas Operations

For the first nine months of 2015, the Public Bank Group’s overseas operations contributed 10.0% of the Group’s overall pre-tax profit as compared to 7.5% contribution in the previous corresponding period, partly due to favourable foreign exchange movement. Tan Sri Teh added, “Cambodian Public Bank Plc, a wholly-owned subsidiary of Public Bank, registered another set of favourable results with pre-tax profit increasing by 14.2% to USD45.6 million as compared to USD40.0 million recorded in the last corresponding period.”

Sustaining a Healthy Capital Position

The Public Bank Group’s capital position remained stable, with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 10.2%, 11.4% and 14.8% respectively as at the end of September 2015.

Tan Sri Teh emphasised that, “We will continue to ensure that the Group’s capital position remain healthy in support of the Group’s business growth strategies by balancing the need for higher capital retention in view of the requirements under the Basel III capital regime whilst maximising our shareholders’ return.”

Group’s Prospect
Going forward, the Malaysian economy is expected to continue growing despite increased challenges from the global and regional developments as well as moderating domestic sentiment. The continued expansion in domestic demand will remain supportive of the banking sector and drives growth in the banking business.

“Our strategies for the Public Bank Group is to remain focused on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance. The Group will continue to leverage on its strong PB brand and its wide and efficient branch network as well as its excellent customer service to support long term sustainable growth,” remarked Tan Sri Teh.

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

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August 2015

6

Aug 2015

For Immediate Release

6 August 2015

Tan Sri Teh Hong Piow Receives The Prestigious William “Bill” Seidman Lifetime Achievement In Financial Service Industry Award 2015 By The Asian Banker

Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow was a proud recipient of the prestigious William “Bill” Seidman Lifetime Achievement in Financial Service Industry award for 2015 by the Singapore-based The Asian Banker, the region’s most authoritative provider of strategic business intelligence to the financial services community.

The award was presented to Tan Sri Teh by the Chairman and CEO of The Asian Banker, Mr. Emmanuel Daniel at a brief ceremony held at Menara Public Bank, Kuala Lumpur on 28 July 2015.

The presentation of the William “Bill” Seidman Lifetime Achievement in Financial Service Industry award to Tan Sri Teh was in recognition of Tan Sri’s achievement in building Public Bank and the Public Bank Group into a leading financial institution in Malaysia and the Asia Pacific.

The William “Bill” Seidman Lifetime Achievement in Financial Service Industry award recognises individuals who reshaped not only the institutions that they worked for, but the entire financial services industry in their respective countries and regions. The Asian Banker seeks to recognise people who are considered giants in the industry because of the lifetime contributions and leadership.

“This is the most prestigious of the achievement awards, as it recognises those who have distinguished their reputations, skills and achievements over a lifetime, setting the benchmark from which others are assessed. The winner of this year’s William “Bill” Seidman Lifetime Achievement in Financial Service Industry award is a rare breed of founding chairman of private commercial banks. Tan Sri Dato’ Sri Dr. Teh Hong Piow, Founder and Chairman of Public Bank and the Public Bank Group has the distinction of presiding over the top privately owned commercial bank in Malaysia, which also has a substantial and growing presence in the region, including Greater China,” said Mr. Emmanuel Daniel in his citation.

“The bank that he has founded is highly respected and looked at by industry peers as offering best practices in various areas that they hope to emulate and benchmark against. For example its 48 years of unbroken profit track record, above industry return on equity (averaging in the high twenty percent before the new Basel III capital norms) and very impressive cost to income efficiency, in the low 30%. All these made possible by the consistent management focus and strategy that he had established and put in place”, added Mr. Emmanuel Daniel.

Tan Sri Teh in his acknowledgement said, “Being the founder of Public Bank and seeing it grow all these years gives me great satisfaction. Looking back, what counted most was to promote excellence and build a strong corporate culture. A culture of discipline and integrity, thereby earning customers’ trust. Like all dreams, mine is only possible with the support of my Public Bank family and members of my board. I would also like to dedicate this award to our customers, shareholders and business associates. My thanks also goes to the Malaysian government for creating a business friendly climate”.

With this award, Tan Sri Teh who turned 85 this year has received a total of 43 personal to holder awards in recognition of his exemplary commitment to excellence and lifetime dedication to the banking industry.

Tan Sri Teh Hong Piow being presented with the award by the Chairman and CEO of The Asian Banker, Mr. Emmanuel Daniel. Sharing the moment are (from left) Mr. Quah Poh Keat, Deputy CEO of Public Bank, Tan Sri Tay Ah Lek, Managing Director of Public Bank and Mr. Foo Boon Ping (far right), Managing Editor of The Asian Banker

Tan Sri Teh Hong Piow receiving the William “Bill” Seidman Lifetime Achievement in Financial Service Industry award from the Chairman and CEO of The Asian Banker, Mr. Emmanuel Daniel in the presence of Tan Sri Tay Ah Lek, Managing Director of Public Bank

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July 2015

30

Jul 2015

For Immediate Release

30 July 2015

Public Bank Group Achieved 14.2% Growth In Net Profit Attributable To Shareholders For The First Half Of 2015 And Declares 24 Sen First Interim Dividend

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to announce that, “The Public Bank Group recorded a commendable set of half year results with its net profit attributable to shareholders increasing by 14.2% year-on-year to RM2.37 billion for the half year ended 30 June 2015. The Group’s pre-tax profit grew by 12.1% to RM3.02 billion during the same period. The profit growth during the period was mainly attributed to the healthy growth in loans and deposits, and stable asset quality. Gains arising from foreign exchange fluctuation in respect of the Group’s foreign operations have also partially contributed to the profit growth for the period. ”

Tan Sri Teh commented that, “The operating environment in the first half of 2015 has become more challenging with increasing concerns in growth sentiment, following the uncertainties in the global economic developments as well as domestic factors. Despite facing the challenging environment, the Public Bank Group has remained steadfast and continued to perform well in the first half of 2015, recording a healthy loan growth of 11.2% on an annualised basis to RM258.8 billion as at the end of June 2015.

In tandem with the Group’s healthy loan growth, its customer deposits recorded an annualised growth of 13.6% to RM295.3 billion as at the end of June 2015. As a result, the Group maintained a stable and healthy loan-to-deposit ratio of 87.0% as at 30 June 2015.”

Tan Sri Teh further added that, “The Public Bank Group continues to rank highly amongst its banking peers in Malaysia in term of profitability and cost efficiency with the highest net return on equity of 17.2%, while maintaining the lowest gross impaired loan ratio of 0.54% and cost-to-income ratio of 31.1%.”

“In view of the Public Bank Group’s commendable performance, I am pleased to announce that the Board of Directors has declared a first interim dividend of 24 sen, which will result in a total dividend payout of RM926.8 million. The first interim dividend will be paid on 24 August 2015 based on the dividend entitlement date of 14 August 2015.” said Tan Sri Teh.

Healthy Growth Momentum in Loans and Deposits

For the first half year ended 30 June 2015, the Group recorded a healthy loan growth at an annualised rate of 11.2%, largely supported by its annualised domestic loan growth of 10.5%, which significantly outpaced the domestic banking industry’s annualised loan growth rate of 6.1%.

As at the end of June 2015, the Group’s retail lending portfolio collectively accounted for 86% of its total loan, comprising mainly loans to small and medium enterprises (“SMEs”), loans for the financing of residential properties and purchase of passenger vehicles. The Group’s SME lending continued to register strong growth momentum with an annualised growth rate of 16.1%.

In line with the healthy loan growth, the Group’s total customer deposits grew at an annualised rate of 13.6%. The Group’s domestic customer deposits grew at an annualised rate of 11.9%, which surpassed the domestic banking industry’s annualised growth rate of 5.3%.

The Group’s strong deposit growth was mainly attributed to the steady inflow of core deposit comprising fixed deposits, low-cost savings and current accounts, which grew by an annualised rate of 15.0%.

Tan Sri Teh highlighted that, “The Public Bank Group’s funding and liquidity position remained stable and healthy, supported by its strong retail deposit franchise with a large domestic depositor base of over 5 million customers that continue to place their trust and confidence in the Group in safeguarding their funds.

Steady Growth in Non-Interest Income

Arising from the Public Bank Group’s initiatives to drive the growth of its non-interest income in order to sustain better return for its shareholders, the Group’s non-interest income recorded a steady growth of 15.3% in the first half of 2015 as compared to the corresponding period in 2014. This was mainly attributed to higher income from its unit trust business, foreign-exchange related transactions and transactional banking services.

Tan Sri Teh said that, “The Public Bank Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the Group’s financial performance by registering a consistent double-digit growth of 16.5% in its pre-tax profit as compared to the corresponding period in 2014. To-date, Public Mutual manages 114 funds with a total net asset value of RM64.7 billion. It continues to be the market leader in the private unit trust business, capturing an overall market share of 38.4% with 57.1% and 50.6% market share in the equity and Islamic unit trust fund sectors respectively.”

Sustainable and efficient cost management

In the first half of 2015, the Public Bank Group continued to maintain an efficient cost-to-income ratio of 31.1% as compared to the banking industry’s average cost-to-income ratio of 45.5%. Tan Sri Teh commented that, “The Public Bank Group continues to remain as the most cost-efficient bank in Malaysia. The Group’s consistent pursuit of high productivity and cost efficiency in all aspects of its operations has enabled the Group’s operating costs to remain low and efficient. The ability of the Group to operate in such an efficient cost structure certainly puts the Group in a better financial position, especially in times of challenges.”

Superior Asset Quality

As at the end of June 2015, the Public Bank Group’s gross impaired loan ratio stood at 0.54%, which is significantly lower than the banking industry’s impaired loan ratio of 1.6%. The Group also maintained a higher and more prudent loan loss coverage ratio of 129.2% as compared to the banking industry's coverage ratio of 100.6%. Tan Sri Teh highlighted that, “The Public Bank Group continues to adopt a prudent approach in managing its credit risks. This is achieved by consistently carrying out a combination of both preventive and proactive measures in its lending activities, such as establishing strict and prudent credit policies, and putting in place efficient and effective approval and recovery processes. As a result, the Group is able to maintain its strong asset quality.”

Overseas Operations

For the half year ended June 2015, the Public Bank Group’s overseas operations contributed 9.1% of the Group’s overall pre-tax profit. Tan Sri Teh added, “Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, reported another set of strong pre-tax profit growth of 26.0% to USD28.8 million as compared to the corresponding period in 2014, amidst the challenging business environment. Campu Bank remains as one of the top three largest banks in Cambodia.”

Healthy Capital Position

The Public Bank Group is well-capitalised to support the Group’s organic business growth strategy. As at the end of June 2015, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at a healthy level of 10.7%, 11.9% and 15.4% respectively, after taking into account the provision for first interim dividend.

Tan Sri Teh reiterated that, “We will ensure that the Group continues to maintain a healthy level of capital to support the Group’s business growth, as well as to meet the more stringent requirements under the Basel III regime. In this respect, we will continue to balance the need of profit retention for capital growth and maximising return to our shareholders.”

Group’s Prospect

Tan Sri Teh concluded that, “Looking ahead, amidst the challenges and moderating sentiment, the Malaysian economy is expected to still remain on a steady growth path although at a moderate pace. Steady domestic demand will continue to be supportive of the banking sector and drives growth in the banking business. However, banks are expected to continue to face with net interest margins pressure due to the intense market competition.

The Group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance. The Group will also continue to leverage on its strong market position, recognised PB brand, wide and efficient branch network, as well as its excellent customer service to support its long term sustainable growth.

Leveraging on these strong fundamentals, the Public Bank Group will continue to enhance its strengths to maintain satisfactory performance for the remaining of 2015.”

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

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8

Jul 2015

For Immediate Release

8 July 2015

Public Bank Break Fast Treat For 150 Orphans

A break fast treat for 150 orphans from four orphanages was held at the Renaissance Kuala Lumpur Hotel on Monday, 6 July 2015, hosted by Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow in conjunction with the holy month of Ramadan.

The children were from Kompleks Penyayang Bakti Sungai Buloh, Asrama Penyayang Nur Iman, Rumah Charis For Children, Good Samaritan Home, Klang.

The event was also attended by Public Bank Managing Director, Tan Sri Dato’ Sri Tay Ah Lek and Senior Management Staff who celebrated the joy of ‘buka puasa’ with the orphans. In line with the Bank’s ongoing Corporate Social Responsibility programme, the four homes were presented with a donation of RM5,000 each for their up-keeping by Tan Sri Dato’ Sri Dr. Teh Hong Piow. They were part of the proceeds from the sales of “Lessons of Success”, the book on the inner thoughts and business strategies of Tan Sri Teh.

It was more memorable for the children when they each received an angpow of RM100 and a goodie bag comprising of backpack, snacks, cookies and beverages. It is only natural for the Bank to give back to the community by carrying out initiatives which brings it closer to people particularly the underprivileged, a philosophy which is very close to Tan Sri Teh’s heart who firmly believes that good things must be shared.

“The month of Ramadan is not only about fasting and prayer but also of sharing and giving, especially to the less fortunate. Tonight, it is in keeping with the spirit of giving that we are celebrating the joy of “Berbuka puasa” with children from four selected orphanages. This is Public Bank’s own way of showing we care by ensuring that children like these are always remembered, especially during times of festivities,” said Tan Sri Teh.

Tan Sri Tay Ah Lek in his speech said, “This “Berbuka puasa” session with orphans is especially meaningful to our Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow, who has always been passionate about supporting the youth and underprivileged. Tan Sri Chairman’s belief that giving is just as important as receiving has positively shaped the Bank’s philosophy on corporate social responsibility.”

Indeed with Hari Raya closely approaching, Public Bank hopes that the children would be able to celebrate the festival with added joy and happiness.

Tan Sri Dato’ Sri Dr. Teh Hong Piow (seated) accompanied by Tan
Sri Dato’ Sri Tay Ah Lek posing with the children from the four orphanages

.Tan Sri Dato’ Sri Dr. Teh Hong Piow (seated) presenting the goodie bag
to one of the orphans accompanied by Tan Sri Dato’ Sri Tay Ah Lek

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6

Jul 2015

For Immediate Release

6 July 2015

Public Bank To Collaborate With Saitama Resona Bank And Kinki Osaka Bank

Public Bank Berhad today signed a Memorandum of Understanding (“MOU”) with Saitama Resona Bank, Ltd and Kinki Osaka Bank, Ltd respectively to establish a collaboration to promote and strengthen cooperation between the respective banks and jointly develop business opportunities on the basis of equality and mutual benefit.

Saitama Resona Bank and Kinki Osaka Bank are wholly-owned subsidiaries of Resona Holdings, Inc, which in turn also owns Resona Bank, Ltd, the fourth largest banking group in Japan that has strong business presence in the greater Tokyo metropolitan area and the Kansai region.

The business collaborations with Saitama Resona Bank and Kinki Osaka Bank respectively will further facilitate Public Bank’s customers to benefit from the potential and established franchise in Saitama Resona Bank’s home market, Saitama Prefecture and Kinki Osaka Bank’s home market at the Osaka Prefecture.

The business collaborations will strengthen the banking services support to the customers of Saitama Resona Bank and Kinki Osaka Bank, particularly in the markets where Public Bank has strong network presence namely Malaysia, Cambodia, Vietnam, Laos, Hong Kong and Sri Lanka.

Public Bank and Resona Bank, another bank under Resona Holdings, Inc., had earlier established similar business collaboration through the Memorandum of Understanding signed in 2013. The business cooperation between Public Bank and the Resona banking group is being strengthened through the further collaborations with Saitama Resona Bank and Kinki Osaka Bank.

Saitama Resona Bank has a strong regional bank franchise with 127 branches in total, and 126 of those in Saitama Prefecture, north of Tokyo, with population of over 7.2 million.

Kinki Osaka Bank is a top regional bank with 122 branches in Osaka Prefecture. The bank engages in retail banking activities, focusing on not only SME segments but individual segments like residential mortgages and investment trust fund.

Japan and ASEAN are major trade partners. Japanese corporations are having active business activities and operations in the ASEAN countries. The collaborations, to be established pursuant to the Memorandum of Understanding, would facilitate Public Bank, respectively with Saitama Resona Bank and Kinki Osaka Bank, to leverage upon their respective strengths and expertise and enable the banks as well as their respective affiliates to establish and promote to their respective customers appropriate banking products and services in Malaysia and Japan. In particular, these services relate to cross border banking transactions and services, which include amongst others, cross border trade settlements, remittance clearance services, credit verification and referrals, and offshore banking service.

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Outline of Saitama Resona Bank, Ltd.

Name	Saitama Resona Bank, Ltd.
Head office address	4-1, Tokiwa 7-chome, Urawa-ku, Saitama 330-9088, Japan
President & Representative Director	Mr Kazuyoshi Ikeda
Financial Condition	Financial Figures (as at March 2015) JPY(million) USD (million) Total Assets 12,583,374 101,889 Deposits 11,601,963 93,943 Loans 6,868,540 55,615 Shareholders’ Equity 70,000 566.8 Net Income Capital 8.98% Adequacy Ratio 14.26%
Foundation	Established in 2002 and started operation in 2003
Rating	Moody’s : A2 (long-term)
Number of Branches	127 branches (As at end-June 2015)
Characteristics	Strong franchise in its home market, Saitama Prefecture, with a total population of over 7.2 million and a gross prefectural product of over JPY20 trillion for the financial year ended 31st March 2012 (FYE3/2012). In Saitama prefecture, SRB maintains high market share of more than 41% in deposits and 45% in loans through solid relationships with its customers. Well-diversified loan portfolio comprises residential mortgage loans at around 60% and loans to small-and-medium-sized enterprises (SMEs) at around 30%.

(1 USD = 123.5 JPY)

Outline of Kinki Osaka Bank, Ltd.

Name	Kinki Osaka Bank, Ltd.
Head office address	4-27, Shiromi, 1-Chome, Chuo-ku, Osaka, 540-8560, Japan
President & Representative Director	Mr Koji Nakamae
Financial Condition	Financial Figures (as at March 2015) JPY(million) USD (million) Total Assets 3,557,218 28,803 Deposits 3,257,652 26,377 Loans 2,474,100 20,033 Shareholders’ Equity 38,971 315.5 Net Income Capital 8.86% Adequacy Ratio 10.93%
Foundation	Established on 24 November 1950
Rating	Moody’s : A2 (long-term)
Number of Branches	122 branches (As at end-March 2015)
Characteristics	Friendly relationship with customers, especially small sized enterprises and individuals. Having the advantage over the other regional banks in terms of number of corporate customers in Osaka. Well-diversified loan portfolio comprises residential mortgage loans at around 50% and loans to small-and-medium-sized enterprises (SMEs) at around 40%.

(1 USD = 123.5 JPY)

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(From left) Mr. Yasushi Nakao of Saitama Resona Bank exchanging the MOU with Dato’ Chang Kat Kiam at Menara Public Bank

(From left) Dato’ Chang Kat Kiam and Mr. Tsuneshi Miyazaki of Kinki Osaka Bank at the Signing Ceremony at Menara Public Bank

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June 2015

3

Jun 2015

For Immediate Release

3 June 2015

U $ave V Reward - "Exclusive Gifts For PB Savers"

Public Bank Berhad (PBB) has launched ‘U $ave V Reward’ Campaign which offers exclusive gifts to customers who open or top up their PLUS Current Account (PLUS CA) or PLUS Savings Account (PLUS SA). It is open to all new and existing individual customers from 25 May 2015 to 31 August 2015.

Three attractive home appliances i.e. the Morgan Air Fryer, LEBENSSTIL Kollektion Breadmaker and LEBENSSTIL Kollektion Digital Coffee Maker are available for customers’ selection.

To participate in this Campaign, customers just need to deposit a minimum amount in either PLUS CA or PLUS SA and allow the amount to be earmarked for 4 months. The deposit must be fresh funds. The complimentary item offered will depend on the minimum deposit amount. Customers can collect all the 3 different items or multiples of the same item so long as they fulfill the minimum deposit requirement for each item. The items are limited and only available while stock lasts.

PLUS CA is a current account with cheque book facility and has the option to apply for overdraft facility while PLUS SA is an all-purpose savings account that is suitable for just about anybody.

U $ave V Reward Campaign is part of PBB’s initiatives to encourage savings by rewarding our customers when they increase their savings with PBB during the Campaign Period.

Hurry up! Just open or top up your PLUS CA or PLUS SA and be rewarded with the exclusive gifts. Collect them all while stock lasts.

To find out more about this Campaign, customers are invited to meet our customer service representatives at any of our branches, log on to PBB website at www.pbebank.com or call free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.

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May 2015

29

May 2015

.

For Immediate Release

29 May 2015

Tan Sri Datuk Seri Utama Thong Yaw Hong, 1930 - 2015

The Members of the Board, Management and staff of Public Bank and its subsidiaries express their deepest condolences to the family of the late Tan Sri Datuk Seri Utama Thong Yaw Hong, the Co-Chairman of Public Bank, who passed away peacefully on 28 May 2015 following a period of illness.

Tan Sri Datuk Seri Utama Thong Yaw Hong was appointed as Chairman of Public Bank in 1986 and re-designated as Co-Chairman in 2002. He had also served as Co-Chairman of various companies in the Public Bank Group, which included Public Islamic Bank Berhad; Public Investment Bank Berhad; Public Mutual Berhad; Public Financial Holdings Ltd, Public Bank (Hong Kong) Ltd and Cambodian Public Bank Plc.

Tan Sri Datuk Seri Utama Thong Yaw Hong had an illustrious career with the Government of Malaysia, primarily in the fields of socio-economic development planning and finance. He had served in the Economic Planning Unit in the Prime Minister's Department since 1957 and became its Director-General from 1971 to 1978 and served as Secretary-General, Ministry of Finance from 1979 until his retirement in 1986.

The Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said today, “We are indeed greatly saddened by the loss. The Boards of Directors of the Public Bank Group acknowledge Tan Sri Datuk Seri Utama Thong Yaw Hong’s par excellence calibre and his invaluable contributions over his 29 years with the Public Bank Group.

Tan Sri Datuk Seri Utama Thong Yaw Hong will always be remembered for his stature in the Government service and corporate world. We will miss him.”

Tan Sri Datuk Seri Utama Thong Yaw Hong

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18

May 2015

For Immediate Release

18 May 2015

Public Bank Launched PB-Petron Visa Gold Credit Card And PB-Petron Visa Debit Card

Public Bank Berhad, in partnership with Petron Malaysia has launched the new PB-Petron Visa Gold Credit Card and PB-Petron Visa Debit Card that offer rewarding payment options to Petron customers with up to 5% cash rebate on fuel purchases at more than 560 Petron stations nationwide.

The new PB-Petron Visa Gold Credit Card extends unlimited 0.5% Cash MegaBonus on other retail purchases and complementary Personal Accident Insurance on top of the up to 5% cash rebates on fuel purchases at Petron stations. New-to-Bank card members are given an option to enjoy a one-time 0% interest Balance Transfer under a 12-month tenure plan.

PB-Petron Visa Debit Card card members will enjoy 1% savings on their fuel purchases at Petron stations and unlimited 0.5% Cash MegaBonus on other retail purchases. This card caters to the needs of card members to control expenses while enjoying savings on their purchases.

To celebrate this partnership and the launch of these new and innovative cards products, Public Bank Berhad is running a 3-month campaign from 1 April 2015. The first 900 lucky and qualified card members will get free fuel at Petron stations.

“It is our pleasure to have Petron, a leading oil and gas company as our co-brand cards partner. This partnership will generate loyal customers to Public Bank and Petron while customers enjoy great rewards and savings with the new co-brand cards. It is a win-win situation for every party,” said Dato’ Chang Kat Kiam, Senior Chief Operating Officer of Public Bank Berhad.

“We are pleased to partner with Public Bank to launch these innovative card products packed with rewards and benefits. Petron is committed to deliver more rewarding experiences to customers and motorists alike and these cards give us the opportunity to ‘FUEL HAPPY’ journeys. More importantly, this collaboration allows us to thank customers for their continued patronage,” Petron Retail Head Pn Faridah Ali said.

Customers can meet our customer service representatives at any Public Bank branch, log on to our website at www.pbebank.com or call our Help Desk at 03-2176 8000 to apply and find out more information about these cards. Terms and conditions apply.

About Petron
Petron Malaysia is a leading company in Malaysia’s downstream oil market. Its 88,000 barrel-per-day Port Dickson Refinery produces a wide variety of world-class fuels which is distributed through 7 terminals strategically located across the country. Through 560 stations nationwide, it retails premium fuels namely Blaze 97, Blaze 95 and Diesel Max. Petron is committed to its vision to be the leading provider of total customer solutions in the oil sector and allied businesses. For more information please visit www.petron.com.my.

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April 2015

20

Apr 2015

For Immediate Release

20 April 2015

Public Bank Group Achieved 15.2% Growth In Net Profit Attributable To Shareholders To RM1.17 Billion For The First Quarter Of 2015

Chairman’s Review

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to announce that, “The Public Bank Group recorded yet another commendable set of results with net profit attributable to shareholders increasing by 15.2% year-on-year to RM1.17 billion for the first quarter of 2015. Pre-tax profit grew by 12.2% to RM1.49 billion for the same period.”

Tan Sri Teh said that, “The Public Bank Group has a head start in achieving its 2015 targets, particularly in its lending and deposit-taking businesses despite operating in a more subdued operating environment. The Group registered a strong loan growth at an annualised rate of 13.1% and in tandem with that, the Group’s customer deposits also increased favourably at an annualised growth rate of 12.8%.

In the first quarter of 2015, the Public Bank Group recorded a net return on equity of 17.1%, gross impaired loan ratio of 0.6% and cost-to-income ratio of 31.0%. Its ability of continuously achieving the best in net return on equity while maintaining the lowest gross impaired loan ratio and cost-to-income ratio has enabled the Group to rank highly amongst its banking peers in Malaysia.”

Strong Growth in Loans and Deposits

The Public Bank Group maintained a strong loan growth momentum at an annualised rate of 13.1% in the first quarter of 2015, largely supported by the domestic loans which grew by an annualised rate of 12.1% over the period.

As at the end of March 2015, the Group’s retail loan portfolio collectively accounted for 86% of its total loans, comprising mainly financing for the purchase of residential properties and passenger vehicles, as well as lending to small and medium enterprises (“SMEs”). In the first quarter of 2015, the Group’s SME lending continued to register strong growth momentum with an annualised growth rate of 21.1%.

The Public Bank Group’s funding and liquidity position remained supportive of its lending activities, backed by its strong retail depositor base of over 5 million customers. The Group’s total customer deposits grew at an annualised rate of 12.8%, with domestic customer deposits growing at an annualised rate of 12.1%.

Tan Sri Teh commented that, “The favourable deposit growth was mainly contributed by the steady inflows of fixed deposits, low cost savings and current accounts, which increased by an annualised rate of 14.9%, 12.4% and 12.5% respectively.” He further added that, “For funding purposes, the Public Bank Group will continue to launch attractive campaigns to reward both new and existing retail customers in placing more funds with the Group, as well as be partially supplemented by wholesale deposits. As at the end of March 2015, the loan-to-deposit ratio remained healthy at 88.0%”

Commendable Growth in Non-Interest Income

In the first quarter of 2015, the Group achieved a commendable growth of 15.7% in its non-interest income as compared to the corresponding quarter in 2014. The strong growth was attributed to higher income from its unit trust business, bancassurance, banking services and investment income.

Tan Sri Teh said that, “The Public Bank Group’s unit trust management business through its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the Group’s financial performance. For the first quarter of 2015, Public Mutual recorded a strong year-on-year double-digit growth of 20.3% in its pre-tax profit. As at the end of March 2015, Public Mutual managed 114 funds with a total net asset value of RM65.8 billion. It continues to be the market leader in the private unit trust business, capturing an overall market share of 39.1% as at the end of February 2015. It also has the highest market share of 58.6% and 50.9% amongst the private unit trusts companies in Malaysia, in the equity and Islamic unit trust fund sectors respectively.”

The Public Bank Group will continue to strengthen its infrastructure and mobilise its resources to capture opportunities to further increase its non-interest income contribution.

Sustainable and Efficient Cost Structure

Tan Sri Teh further highlighted that, “The Public Bank Group continued to remain as the most cost-efficient bank in Malaysia, with its cost-to-income ratio of 31.0% in the first quarter of 2015 as compared to the banking industry’s average ratio of 45.5%. The ability of the Group to operate in such an efficient cost structure certainly puts the Group in a better financial position, especially in times of uncertainty. ”

“To ensure cost sustainability amid the challenging business landscape, the Public Bank Group will continue to be prudent in its cost management by ensuring that its resources are aptly deployed to achieve the desired optimum results that can bring tangible values to the organisation and its stakeholders. The Group will continue to strive for higher productivity and operational efficiency while ensuring strict adherence to operation controls and regulatory compliances,” added Tan Sri Teh.

Superior Asset Quality

The asset quality of the Public Bank Group remained well-controlled and resilient with a low gross impaired loan ratio of 0.6% as at the end of March 2015, significantly lower than the Malaysian banking industry’s gross impaired loan ratio of 1.7%. The loan loss coverage ratio stood at 128.1%, which was higher and more prudent than the banking industry's coverage ratio of 97.9%. Inclusive of the regulatory reserves of RM1.5 billion that the Group has set aside for additional credit risks absorbent, the loan loss coverage of the Group is higher at 233.7%.

“While the Public Bank Group continues to extend credit facilities to its customers, the Group will ensure that its superior asset quality is safeguarded at all times by adopting a prudent approach in managing its credit risk. This includes consistent and effective implementation of both preventive and proactive measures in its lending activities, such as establishing strict and prudent credit practices as well as putting in place efficient and effective approval and recovery processes,” said Tan Sri Teh.

Overseas Operations

For the first quarter of 2015, the Public Bank Group’s overseas operations contributed 8.8% of the Group’s overall pre-tax profit.

Tan Sri Teh highlighted that, “Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, continued to report strong growth of 44.8% in pre-tax profit to USD13.9 million for the first quarter of 2015 as compared to the corresponding quarter in 2014, and remains as one of the top three largest banks in Cambodia.”

In July 2014, Public Bank entered into an agreement for the acquisition of the remaining 50% equity interest in VID Public Bank (“VPB”) not held by the Group. The State Bank of Vietnam had on 23 March 2015 granted its approval on the acquisition and for Public Bank to transform VPB, the existing joint venture bank, into a 100% foreign-owned bank of Public Bank in Vietnam. Upon completion of the exercise, VPB will become a wholly-owned subsidiary of the Group.

Healthy Capital Position

The Public Bank Group is well-capitalised to support the Group’s organic business growth strategy. As at the end of March 2015, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at a healthy level of 10.5%, 11.7% and 15.2% respectively.

As part of its proactive capital management strategy, the Public Bank Group will continue to monitor its capital position to ensure healthy capital level at all times to support its continuous business growth whilst meeting the more stringent Basel III capital requirements.

Group’s Prospect

“The Group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance. The Group will also continue to leverage on its strong PB brand and its wide and efficient branch network as well as its excellent customer service to support long term sustainable growth.

The Malaysian economy is expected to remain resilient albeit at a more moderate growth pace of 4.5% to 5.5% in 2015, backed by domestic demand. On the banking landscape, we expect continued net interest margin compression due to external headwinds and intense market competition. Despite facing these challenges, the Public Bank Group is expected to maintain its satisfactory performance for the rest of 2015,” concluded Tan Sri Teh.

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

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8

Apr 2015

For Immediate Release

8 April 2015

Earn Higher Profit Rates Via 'PB TD-i Reward' Campaign

Public Islamic Bank Berhad (PIBB), a wholly-owned subsidiary of Public Bank, has launched a new campaign, ‘PB TD-i Reward’ which offers promotional profit rates of up to 4.38% p.a. This Campaign will run from 18 March to 30 June 2015.

Term Deposit-i is an Islamic Term Deposit which provides customers the flexibility to manage their funds for short or long-term placement. It is simple to participate. For individual customers, just place a minimum amount of RM10,000 in a 4-month Term Deposit-i subject to a maximum placement of RM10 Million. A minimum and maximum placement of RM30,000 and RM20 Million respectively is applicable to the non-individual customers.

Customers will enjoy a promotional profit rate of 3.98% p.a for the first 4 months. Should they rollover their placements for another 4 months, they will enjoy higher profit rate of 4.28% p.a. (first rollover) and 4.38% p.a. (second rollover).

PIBB launched “PB TD-i Reward” Campaign as a way to show our appreciation to our valued customers for their continuous support and loyal patronage. We will continue to launch more campaigns to reward our new and existing customers.

To find out more about this Campaign, customers are invited to meet our customer service representatives at any of our branches, log on to PIBB / PBB website at www.publicislamicbank.com.my / www.pbebank.com or call free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.

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March 2015

30

Mar 2015

For Immediate Release

30 March 2015

Public Bank's 49th Annual General Meeting Held on 30 March 2015

In conjunction with Public Bank’s 49th Annual General Meeting held on 30 March 2015, the Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to present a review of the Public Bank Group’s performance in 2014.

Performance Review

Tan Sri Teh said, “The Public Bank Group registered another year of commendable results in 2014 with a record net profit attributable to shareholders of RM4.52 billion, representing 11.2% growth from 2013. Pre-tax profit grew by 9.5% to RM5.81 billion in 2014.”

Tan Sri Teh highlighted that, “Despite a subdued operating environment towards the second half of 2014, the Public Bank Group achieved strong double-digit loans and deposits growth of 10.8% and 10.2% respectively. This was mainly supported by domestic loans and deposits which grew by 10.5% and 9.9% respectively, outpacing the banking industry’s growth rate of 8.7% and 7.6% respectively, hence leading to improved market shares in the domestic market.”

Tan Sri Teh added, “In view of the Group’s commendable performance in 2014, a second interim dividend of 31 sen was paid on 5 March 2015. Together with the first interim dividend of 23 sen which was paid in August 2014, the total dividend paid for 2014 was 54 sen.” The total dividend paid for 2014 amounted to RM2.08 billion, an increase of 14% as compared to RM1.82 billion paid for 2013, and represented a total payout of 46.1% of the Group’s net profit for 2014.

Tan Sri Teh said, “The Public Bank Group continues to stand out among the Malaysian banking peers in terms of profitability, cost efficiency and asset quality, with the highest net return on equity of 19.9% and lowest cost to income ratio and gross impaired loans ratio of 30.0% and 0.6% respectively.”

Strong Growth in Loans and Customer Deposits

The Group remained focus on lending to the retail banking segment, comprising financing for the purchase of residential properties and passenger vehicles as well as extension of credits to small and medium enterprises. As at the end of 2014, the Group’s retail consumer and commercial loans and financing portfolio collectively accounted for 86.2% of its total loans and financing.

Tan Sri Teh further added, “The Public Bank Group’s gross loans grew by 10.8% to RM245.0 billion as at the end of 2014. In particular, lending to small and medium enterprises grew at a strong rate of 19.5% in 2014. The Group continued to sustain its No. 1 position in domestic lending for residential mortgages, passenger vehicles and commercial property financing with market shares of 19.4%, 28.1% and 33.6% respectively.”

“On the funding side, the Group’s customer deposits grew by 10.2% to RM276.5 billion, mainly supported by domestic deposits growth of 9.9%. The Group’s domestic deposits growth was mainly due to steady inflows of its core deposits comprising savings, demand and fixed deposits, which grew by 7.0% as compared to the Malaysian banking industry’s core deposits growth of only 0.8%.” remarked Tan Sri Teh.

Superior Asset Quality

Tan Sri Teh said, “The Public Bank Group’s gross impaired loans ratio further improved to 0.6%, significantly lower than the industry’s ratio of 1.7%.”

The Group's loan loss coverage ratio of 122.4% as at the end of 2014 was also higher and more prudent as compared to the Malaysian banking industry’s loan loss coverage ratio of 106.3%. Inclusive of regulatory reserves set aside, the Group’s loan loss coverage was significantly higher at 218.6%.

International Operations

The Public Bank Group’s overseas operations grew by 22.4% to RM431.9 million in 2014, contributing 7.4% to the Group’s pre-tax profit in 2014. Tan Sri Teh said, “Cambodian Public Bank Plc registered a strong double digit pre-tax profit growth of 36.5% to USD50.6 million in 2014 and remained one of the top three largest banks in Cambodia.”

Steady Growth in Non-Interest Income

Growing non-interest income remains the key strategic focus of the Public Bank Group. In 2014, the Group’s non-interest income increased steadily by 9.2%, mainly attributed to higher income from its unit trust business, investment income and fee income from banking operations.

“The Public Bank Group’s unit trust management business undertaken by its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to be a key contributor to the Group’s fee-based income. In 2014, Public Mutual registered a double-digit pre-tax profit growth of 14.9% to RM489.9 million. Public Mutual launched nine new funds during the year bringing the total funds under management to 113 funds with a total net asset value of RM63.0 billion. Public Mutual retained its leading position in the private unit trusts business with an overall market share of 39.4% as at the end of 2014, with 58.8% and 50.4% market share in the equity and Islamic unit trust fund sectors,” added Tan Sri Teh.

Healthy Capital Position

Public Bank successfully completed a rights issue exercise in August 2014 which raised a total of RM4.8 billion in equity capital. With the completion of the rights issue, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were further strengthened to a strong level of 10.8%, 12.2% and 15.8% respectively as at the end of 2014, after deducting second interim dividend. The Group is now the second highest capitalised banking group in Malaysia in terms of Tier 1 capital ratio.

Superior Returns to Shareholders

The Public Bank Group continues to deliver consistent and excellent returns to its shareholders over the medium and long term.

Tan Sri Teh highlighted, “If a shareholder of Public Bank had bought 1,000 shares in Public Bank when it was listed in 1967, and assuming the shareholder had subscribed for all rights issues to date and had not sold any of the Public Bank shares, he would have 148,938 Public Bank shares worth RM2.7 million as at 31 December 2014. In addition, he would have received total gross dividends of RM994,669. This translates into a total value of RM3.7 million representing a remarkable compounded annual rate of return of 19.3% for each of the 47 years since 1967.

Over the medium-term of 5 years since the end of 2009, a Public Bank shareholder would have enjoyed an annual rate of return on investment of 14.0% for the five-year period.”

Corporate Responsibility

To promote environment sustainability, the Public Bank Group has adopted the “green” concept in the construction of Public Mutual’s new head office building in Kuala Lumpur, which incorporates a host of green features in the design and layout of the building.

In 2014, the key corporate responsibilities initiatives undertaken included providing continued financial assistance to IJN Foundation for the running of Dormitori Yayasan IJN-Public Bank and the continued support of the Universiti Tunku Abdul Rahman in its research studies in the field of banking and finance. The Group is also an active supporter of projects and events that promote healthcare, education, professional development and community activities.

“The Public Bank Group continues to build sustainable practises in every aspect of the Group’s business. Through the years, the Group serves retail consumers and small and medium enterprises via its core banking business. The Group also plays an active role in promoting domestic and regional trade activities through credit extension and deployment of customer deposits. As a result of its strong profitability track record, the Group continues to be a major contributor to the fiscal revenue of the country with tax payments totalling RM5.24 billion for the past five years,” said Tan Sri Teh.

Recognition of Banking Excellence

Tan Sri Teh commented that, “The Public Bank Group continued to receive external recognitions for banking excellence by reputable international publications and independent organisations.” The awards received include:

Best Bank in Malaysia 2014 by Global Finance
Best Bank in Malaysia 2014 by FinanceAsia
Best Domestic Bank in Malaysia 2014 by Asiamoney
Best Domestic Bank in Malaysia 2014 by The Asset
Best Managed Company in Malaysia – Large Cap 2014 by Asiamoney
Best Retail Bank Malaysia for 2014 by Global Financial Market Review
Domestic Retail Bank of the Year - Malaysia 2014 by Asian Banking and Finance
Best Bank in Malaysia 2014 and Best SME Bank in Malaysia 2014 by Alpha Southeast Asia
Malaysia Best Customer Experience in Banking Award 2014 by Frost & Sullivan

Corporate Governance Awards

Tan Sri Teh said, “The Public Bank Group’s record of excellence in good corporate governance continued to be validated by reputable international publications.” These include:

The 4th Asian Excellence Recognition Awards 2014 for Best Corporate Social Responsibility for Malaysia, Best Investor Relations for Malaysia and Best Corporate Communications Team for Malaysia by Corporate Governance Asia
Corporate Governance Asia Recognition Award 2014 for Malaysia (Icon on Corporate Governance) by Corporate Governance Asia
Asiamoney 25th Anniversary Corporate Governance Poll of Polls for Overall Best Company in Malaysia for Corporate Governance 2004-2013 (except for 2005) by Asiamoney
The Asset Platinum Corporate Award 2014 for All-Round Excellence in Financial Performance, Corporate Governance, Social Responsibility, Environmental Responsibility and Investor Relations by The Asset

Outlook

On the strategic directions and outlook for the Public Bank Group, Tan Sri Teh commented that, “The challenging and increasingly regulated business environment as well as intense competition for loans and deposits will continue to impact margins. Facing the challenges ahead, the Public Bank Group will accelerate business innovation and pursue operational efficiency whilst maintaining prudent risk and cost management.

The Group is expected to maintain its earnings momentum and record satisfactory performance in 2015.”

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

The Public Bank Board of Directors at the Bank's 49th Annual General Meeting

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20

Mar 2015

For Immediate Release

20 March 2015

Public Bank Unveils First Multilingual Mobile Banking App

Public Bank Berhad is pleased to announce the launch of PB engage, a multilingual mobile banking app. PB engage is the first mobile banking app in the banking industry to offer three languages-Bahasa Malaysia, English and Chinese.

PB engage is a seamless extension of the bank’s existing PBe Internet Banking. The new app, designed to provide an engaging, secure and fuss free banking on the go, allows users to do their banking in their preferred language.

PBe customers can just log in to PB engage using their existing PBe User ID and Password to instantly enjoy the flexibility and convenience of accessing their financial accounts anytime, anywhere.

PB engage features a quick guide to help first time users familiarize with the app’s layout and functions.

Similar to the PBe website, PB engage has a user friendly interface which utilises colour coded transaction tiles for different functions. The app also allows users to select from a list of shortcuts for instant access to popular transactions.

It is designed to be simple and easy to use when viewed on mobile devices.

Customers are able to perform balance enquiries, fund transfers, mobile prepaid top ups and payments on the go. With PB engage, Public Bank is confident that we will be able to deliver the most efficient, secure and safe mobile banking experience to our customers.

Download of the app is free and is currently made available to smartphones and tablets running on the Apple iOS and Android operating system.

To learn more about the new PB engage app and the PBe website, please visit www.pbebank.com or call PBe Customer Support at 03-21795000.

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17

Mar 2015

For Immediate Release

17 March 2015

Public Bank Chairman Honoured With Three Awards On Birthday

It was the best icing on the cake for Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow, when he was honoured with not one but three prestigious personal to holder awards last Saturday, 14 March 2015 on his Grand 85th Birthday.

Two international publications, Yazhou Zhoukan and The Asset and Malaysia’s branding foundation, the Asia Pacific Brands Foundation presented Tan Sri Teh with the ‘Yazhou Zhoukan Global Chinese Entrepreneur Lifetime Achievement Award 2015’, ‘The Asset Banker Extraordinaire 2015 Award’ and the ‘BrandLaureate ICON of ICONS - The King of Banking Award’ respectively in the presence of 4,000 guests comprising of Board of Directors and senior staff of Public Bank Group at the Mines International Exhibition and Convention Centre, Seri Kembangan, Selangor.

Mr. Yau Lop Poon, Editor-in-Chief of Yazhou Zhoukan in his citation speech described Tan Sri Teh as a legend in the global Chinese business community that opened up a new chapter of banking business, changing the power landscape in the banking community in the region that used to be dominated by the Westerners.

Mr. Yau said, “Tan Sri Teh’s lifetime total dedication and devotion to banking is highly commendable. Tan Sri Teh’s whole-hearted commitment to make Public Bank extremely successful year after year in this part of Asia is certainly an inspiration to other bankers and a benchmark for the banking industry.”

In conferring ‘The Asset Banker Extraordinaire 2015 Award’ to Tan Sri Teh, its Editor-in-Chief, Mr. Daniel Yu praised Tan Sri Teh for his brilliance in his simplicity.

Mr. Yu said, “Fully aware of the responsibility to shareholders, to depositors and to the public at large, Tan Sri built a bank that focused on what he knows best; designed a thoughtful customer service infrastructure around it; constantly improving it to ensure it is able to deliver prompt and consistent service to meet the needs of the bank’s customers”.

“After nearly half a century of dedication and perseverance, Public Bank under the leadership of Tan Sri Teh has produced sustained profitability few can match, even among the world’s most powerful banks. It is a world class institution that embodies excellence in customer service, prudence in risk management and exceptional corporate governance,” added Mr. Yu.

Dr. KKJohan, President of the BrandLaureate in presenting the ‘BrandLaureate Icon of Icons - The King of Banking Award to Tan Sri Teh said, “Tan Sri Teh is highly regarded as the face and the force of Public Bank. He steers Public Bank to be the largest private commercial bank in the country, with an unprecedented and impressive growth, year after year for the past 49 years, making Public Bank, the pride of many and the envy of all.”

Dr. KKJohan continued, “I, as the president of The BrandLaureate is so proud to present to you, Tan Sri Teh, The BrandLaureate Brand ICON Leadership Award - ICON of ICONS - King of Banking Award. This award is exclusively conferred to only one individual for the year and the recipient must possess extraordinary attributes, one who exudes dynamism, personifies wisdom and integrity and is admired and respected by his country and the world.”

“Tan Sri Teh, we hope that tonight is another most defining and memorable moment for you. In this spirit, we hope that this Award marks another great milestone in the great odyssey of your life, one worthy of everlasting remembrance,” he said.

Tan Sri Teh in his acknowledgement speech said, “Recognition from such prestigious publications are always an honour. This is all the more so when they are well acclaimed for their noble efforts in paying tribute to and celebrating entrepreneurial achievements which contribute towards the fostering of business excellence. Indeed, I am elated by the triple whammy. I would also like to thank our guests for their generous and inspiring messages.”

“It is a proud moment for all Public Bank staff to share in my joy of receiving three prestigious personal to holder awards in one night. I would like to dedicate these awards to staff, Members of the Boards and all stakeholders.”

With these three additional awards, Tan Sri Teh has received a total of 42 personal to holder awards in recognition of his exemplary commitment to excellence and lifetime dedication to the banking industry.

(From left) Tan Sri Dato’ Sri Tay Ah Lek, Managing Director Public Bank, Dr. KKJohan, Tan Sri Dato’ Sri Dr. Teh Hong Piow, Mr. Daniel Yu and Mr. Yau Lop Poon at the awards’ presentation ceremony

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February 2015

5

Feb 2015

For Immediate Release

5 February 2015

Public Bank Group Achieved 11.2% Growth With A Record Net Profit Attributable To Shareholders Of RM4.52 Billion And Declared Second Interim Dividend Of 31 Sen

Chairman’s Review

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow is pleased to announce that, “The Public Bank Group achieved another year of commendable results in 2014 with a record net profit attributable to shareholders of RM4.52 billion, representing 11.2% growth as compared to 2013. Pre-tax profit increased by 9.5% to RM5.81 billion in 2014.”

The commendable 2014 financial results of the Public Bank Group were mainly contributed by the steady growth in net interest income and non-interest income, as well as stable credit costs. Despite facing net interest margin compression, the Group’s net interest income grew by 6.5% during the year, mainly contributed by continued strong loan and deposit growth as well as the positive impact arising from the hike in the overnight policy rate in July 2014 and the rights issue which was completed in August 2014.

“While the Malaysian economy remained resilient through 2014, the growth sentiment has been moderating especially towards the third quarter of 2014 amid the concerns over the volatility in the equity market, weak Ringgit and decrease in oil prices. Despite facing the headwinds, the Public Bank Group persevered and continued to perform well and recorded a strong annual loan growth of 10.8%, outpacing the banking system’s loan growth of 8.7%. In tandem with that, the Group also recorded similar double-digit growth of 10.2% in customer deposits, particularly contributed by its strong customer deposits in respect of its domestic commercial banking operations, which grew by 11.6%, and significantly surpassing the banking system’s deposit growth of 7.6%,” commented Tan Sri Teh.

Tan Sri Teh further added that, “The Public Bank Group continues to stand out among its Malaysian banking peers by delivering the best in return on equity, cost efficiency and asset quality. For the financial year ended 2014, the Group recorded an efficient cost-to-income ratio of 30.0% and maintained its low gross impaired loans ratio of 0.6%. The Group also recorded the highest net return on equity of 19.9% as compared to its peers. Once again, the positive results reinforce the Group’s strategy in pursuing organic growth in the core retail banking business.”

Tan Sri Teh said, “In view of the Public Bank Group’s commendable performance for the year, I am pleased to announce that the Board of Directors has declared a second interim dividend of 31 sen. Together with the first interim dividend of 23 sen which was paid in August 2014, the total dividend for 2014 is 54 sen.”The total dividend paid and payable for 2014 amounts to RM2.1 billion and represents a total payout of 46.1% of the Group’s net profit for 2014.

Strong Growth in Loans and Deposits

The balance sheet of the Public Bank Group remained strong and healthy.

“Although the operating environment was subdued towards the second half of 2014, the Public Bank Group was able to continuously keep pace with strong loan growth momentum, registering a growth of 10.8% to RM245.0 billion. The Group continued to sustain its market leadership position in the retail banking segment, comprising extension of financing for the purchase of residential properties, commercial properties and passenger vehicles. Lending to small and medium enterprises had been particularly strong with a growth of 20% in 2014,” remarked Tan Sri Teh.

As at the end of 2014, the Group’s retail loan portfolio collectively accounted for 86% of its total loans.

Tan Sri Teh added that, “On the funding side, the Public Bank Group’s customer deposits grew by 10.2% in 2014 to RM276.5 billion. The Group’s growth in customer deposits in respect of its domestic commercial banking operations was even stronger at 11.6%, mainly due to the strong growth in its savings, current accounts and fixed deposits, which grew by 4.3%, 7.1% and 9.5% respectively as compared to the industry’s savings and current accounts growth rate of 2.4% and 4.7%, and a 1.3% contraction in fixed deposits.”

With the steady inflow of customer deposits, the Public Bank Group remains well funded with a stable net loan to deposit ratio of 88.0% as at the end of 2014.

Steady Growth in Non-Interest Income

The Public Bank Group’s non-interest income improved steadily by 9.2% in 2014 as compared to 2013. This was mainly contributed by higher income from its unit trust business, investment income and fee income from banking operations.

Tan Sri Teh commented that, “The Public Bank Group’s unit trust management business undertaken by its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to be a key contributor to the Group’s overall profit by registering a consistent double-digit pre-tax profit growth of 14.9% in 2014 as compared to 2013. As at the end of 2014, Public Mutual manages 113 funds with a total net asset value of RM63.0 billion and remains as the market leader with an overall market share of 39.4% in the private unit trusts business. Public Mutual also commands market leader position in the equity and Islamic unit trust fund sectors with 58.8% and 50.4% market share respectively as at the end of 2014.”The Public Bank Group will continue to mobilise its resources to focus on enhancing its cross-selling initiatives to both existing and new customers, and strengthening its infrastructure to further increase non-interest income.

Sustained Low Cost-To-Income Ratio

The Public Bank Group’s operating expenses for 2014 increased by 4.1%, mainly attributable to the increase in personnel costs which were in tandem with the increased headcount to support business expansion.

Tan Sri Teh highlighted that, “The Public Bank Group continues to be the most efficient banking group in Malaysia with its low cost-to-income ratio of 30.0% as compared to the banking industry’s average cost-to-income ratio of 45.6%. The Group’s consistent pursuit of high productivity and cost efficiency in all aspects of its operations had enabled the Group’s operating costs to remain low and efficient.

The Group will continue to prioritise the investment and deployment of resources and technology to where they are most effective in delivering high productivity and efficiency without compromising on compliance and service quality.”

Strong Asset Quality

As at the end of 2014, the Public Bank Group’s impaired loan ratio further improved to 0.6%, significantly

lower than the industry ratio of 1.7%. The Group’s loan loss coverage ratio of 122.4% as at the end of 2014 was also higher as compared to the Malaysian banking industry’s ratio of 106.3%.

“To safeguard its strong asset quality while maintaining steady growth in its lending business, the Group will continue to adopt a prudent approach in managing credit risk. This includes consistent and effective implementation of both preventive and proactive measures in its lending activities, such as establishing strict and prudent credit policies as well as putting in place efficient and effective approval and recovery processes,” said Tan Sri Teh.

Overseas Operations

The Public Bank Group’s overseas operations contributed 7.4% of the Group’s overall pre-tax profit for 2014.

Tan Sri Teh commented that “Cambodian Public Bank Plc (“Campu Bank”), a wholly-owned subsidiary of Public Bank, delivered yet another strong set of financial results, with a double-digit pre-tax profit growth of 36.5% to USD50.6 million as compared to 2013 and is amongst the top three largest banks in Cambodia.”

Healthy Capital Position

During the year, Public Bank successfully completed the renounceable rights issue exercise which raised RM4.8 billion equity capital. Its wholly-owned subsidiary, Public Islamic Bank Berhad, also made an issuance of RM500 million Basel III- compliant Subordinated Sukuk Murabahah. Both the exercises were part of the Group’s capital management strategy aimed to further strengthen the Group’s capital position to support its continuous business growth as well as to build an adequate level of capital buffer in preparation for the more stringent capital requirements under the Basel III capital framework.

As a result, the Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio increased to a strong level of 10.8%, 12.2% and 15.8% respectively as at the end of 2014, after taking into account the provision for second interim dividend. The Group is currently the second highest capitalised banking group in Malaysia in terms of Tier 1 capital ratio.

Group’s Prospect

The Group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance. The Group will leverage on its strong PB brand and its efficiently-run and wide-reach branch network as well as its delivery of excellent customer service to provide sustainable long term growth.

“The Malaysian economy is expected to be supportive of growth, supported by domestic demand albeit at a more moderate pace. On the banking industry front, we expect the net interest margin compression to persist as the competition for both loans and deposits market share remains intense. Despite the challenges ahead, the Public Bank Group strives to remain resilient by planning to face those challenges while working towards the best.

The Group is expected to maintain its earnings momentum and record satisfactory performance in 2015,” concluded Tan Sri Teh.

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

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January 2015

30

Jan 2015

For Immediate Release

30 January 2015

Public Islamic Bank Launches The Visa Islamic Credit Cards-i

Public Islamic Bank Berhad has recently launched the Public Islamic Bank Visa Platinum Credit Card-i and Visa Gold Credit Card-i, offering the market with Shariah-compliant credit cards under Ujrah concept that are exclusively tailored to compliment lifestyle of today’s Malaysian consumers.

The Public Islamic Bank Visa Platinum Credit Card-i is targeting the mass-affluent segment market with a minimum income level of RM60,000 per annum while the Public Islamic Bank Visa Gold Credit Card-i is designed to appeal to income earners of RM24,000 and above. Both cards offer unlimited Hibah Performance Bonus of up to 0.9% and 0.7%, respectively, for retail transactions. As an added privilege, Platinum cardmembers gets 2X unlimited Hibah Performance Bonus for overseas transactions. There is no capping on Hibah Performance Bonus which sets the cards apart from other competitors in the market.

Frequent travelers are in for a treat as Platinum cardmembers will be able to enjoy unlimited complimentary access to Malaysia Plaza Premium Lounge with 5 overseas transactions of any amount within 30 days before and/or after each access. To provide peace of mind during travelling, all cardmembers are automatically insured by travel insurance of up to RM2 million.

To celebrate the launch, Public Islamic Bank Berhad will reward the first 200 qualified Visa Platinum cardmembers with Barry Smith Luggage and the first 200 qualified Visa Gold-i Cardmembers with Jean-Louis Scherrer watch upon one retail transaction charged on the card within first two months from card approval date.

Present at the launch of Public Islamic Bank Visa Platinum Credit Card-i and Public Islamic Bank Visa Gold Credit Card-i at Menara Public Bank in Kuala Lumpur were En. Abu Hassan Assari Ibrahim, CEO of Public Islamic Bank Berhad and Ms. Chan Chiew Peng, General Manager of Public Bank Retail Financial Services, together with Mr. Tolan Steele, Group Country Manager, Regional Southeast Asia for Visa and Mr. Ng Kong Boon, Visa Country Manager for Malaysia.

Commenting at the launch, En. Abu Hassan Assari Ibrahim, CEO of Public Islamic Bank Berhad said, “The Visa Platinum and Gold Islamic Credit Cards-i are the latest products introduced by the Bank as part of our initiative to provide a wider range of Shariah-compliant banking products and services to meet the ever changing needs of our customers, both Muslim and non-Muslim.”

“We congratulate Public Islamic Bank on the launch of its new Visa Platinum and Visa Gold Shariah-compliant credit cards. Both cards feature Visa payWave contactless payment technology to provide Malaysian consumers with a faster and more convenient way to pay for everyday purchases. We believe contactless payments will continue to grow as more and more Malaysians experience the benefits of using their contactless payment cards, which is in line with the country’s goal to drive Malaysia into a cashless society,” said Ng Kong Boon, Visa Country Manager for Malaysia.

To find out more about this Card, customers are invited to meet our customer service representatives at any of our branches, log on to Public Bank’s website at www.pbebank.com or Public Islamic Bank’s website at www.publicislamicbank.com.my or call PB Customer Service at 03-2176 8000. Terms and conditions apply.

(From left) Mr. Tolan Steele, En. Abu Hassan Assari, Mr. Ng Kong Boon and Ms. Chan Chiew Peng at the launch of Public Islamic Bank Visa Islamic Credit Cards-i

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Media Release