Public Bank And UnionPay International Launched PB UnionPay Lifestyle Debit Card

November 2017

7

Nov 2017

For Immediate Release

7 November 2017

Public Bank And Public Islamic Bank Activate Relief Assistance Programme For Customers Affected By The Massive Flood

Public Bank and Public Islamic Bank are activating the Relief Assistance Programme for its customers and employees who have been affected by the current flood in several states in Malaysia.

Public Bank Managing Director, Tan Sri Tay Ah Lek said today, “Similar to previous relief measures undertaken by Public Bank, the Bank is considerate towards the people who are affected by the flood. The Bank hopes that the Relief Assistance Programme would help to alleviate their hardship.”

Relief Assistance for Affected Customers
Effective November 2017, for the affected individual and business customers, Public Bank is offering moratorium of up to six months for the monthly instalment payments of loans and financing. The flood moratorium is applicable to house financing, hire purchase, credit cards and other loans and financing facilities.

In addition, Public Bank will, on a case-to-case and need basis, accommodate to requests by the affected customers to restructure their loans and financing, and reschedule their monthly repayment to assist in their cash-flow situation during this difficult time.

Public Bank will waive charges to affected customers who are seeking to replace their ATM cards, passbooks, cheque books or any banking related documents, which have been destroyed or lost in the flood.

Public Bank will also work in collaboration with Lonpac Insurance Bhd, under its Fast-Track Claim Settlement Programme, to facilitate and expedite claims to be made by the affected customers on losses covered by their respective insurance policies underwritten by Lonpac.

Financial Assistance for Staff
As a caring employer, Public Bank has provided special cash relief assistance to its affected staff and their families. The affected staff are being granted compassionate leave to enable them to attend to their domestic affairs.

Contacts
Affected customers who require the Relief Assistance Programme are advised to go to the Public Bank branch where they maintain their accounts or call the Bank’s toll-free number at 1800 22 5555. For insurance claims related matters, affected customers can contact Lonpac at 03-2262 8688.

“Public Bank stands ready to support the needs of customers and staff. The Bank will continue to monitor the situation and extend its assistance should the need arise,” Tan Sri Tay added.

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October 2017

27

Oct 2017

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

27 October 2017

Comments On The Budget 2018

We applaud the wholesome approach in crafting the Budget 2018. Budget 2018 touches all aspects of the society and rakyat from all walks of life. It provides wide ranging and inclusive measures to promote economic expansion and wellbeing of the rakyat, particularly the medium and lower income group. This sets the direction for the nation to embark on the journey towards the National Transformation 2050 (TN50). The Budget also addresses the needs of the rakyat amid rising cost of living.

We view positively the Government’s firm and continuous commitment in strengthening its fiscal position, and Budget 2018 affirms this ongoing fiscal effort. Budget deficit is projected to reduce further to 2.8% of GDP in 2018, supported by expectations of higher government revenue and prudent fiscal spending.

The implementation of new and ongoing infrastructure projects will continue to stimulate investments, which in turn generate capacity expansion in high growth sectors. Domestic investment will complement private consumption activities, contributing to a broad-based economic growth.

The global economic landscape will continue evolving owing to technological advancement, particularly in the area of digital economy. In the midst of the Fourth Industrial Revolution, raising value-added productivity, alongside innovation, technological advancements and human capital development could unleash further the growth potential of the Malaysian economy.

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

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26

Oct 2017

For Immediate Release

26 October 2017

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM5.16 BILLION FOR THE FIRST NINE MONTHS OF 2017

Chairman’s Review

For the first nine months of 2017, the Public Bank Group continued to make good progress, with its pre-tax profit increasing to RM5.16 billion, representing 8.4% growth from the corresponding period in 2016. Over the same period, net profit attributable to shareholders increased by 7.0% to RM3.98 billion.

The Public Bank Group’s sustained business momentum continued to be driven largely by its healthy growth in its loans and deposits business, generating 8.0% growth in its net interest income. Non-interest income also recorded a healthy growth of 7.6% during the period.

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “The macro environment and the more stringent regulatory requirements have presented many challenges to the banking business. Notwithstanding this, the Public Bank Group’s strategy has continued to deliver values and returns. The Group’s ability to sustain its business performance in this challenging market condition demonstrates its underlying strength as reflected in the Group retaining its competitive position.”

Tan Sri Teh added, “The Public Bank Group continued to outperform the Malaysian banking industry as reflected in its key performance indicators. As at the end of September 2017, the Group’s net return on equity stood at 15.4% with an efficient cost-to-income ratio of 32.8%, while the Group’s gross impaired loan ratio remained low at 0.5%.”

Healthy Loan and Deposit Growth

In the first nine months of 2017, the Public Bank Group’s total loans recorded 3.3% annualised growth to RM301.3 billion. The Group’s domestic loans portfolio grew at a higher annualised rate of 4.6%, as compared to the banking industry’s annualised growth rate of 3.5%.

“The Public Bank Group continued to focus on the financing for the purchase of residential properties, passenger vehicles and lending to small and medium enterprises, which remained our major sources of income. The Group has also continued to retain leading market share in these lending segments,” commented Tan Sri Teh.

On deposit-taking, the Public Bank Group’s total deposits grew at an annualised rate of 5.4% to RM322.6 billion over the first nine months of 2017. On the domestic front, total deposits grew at an annualised rate of 5.7% as compared to 3.7% annualised growth recorded in the domestic industry’s total deposits.

Growth in Non-interest Income

In the first nine months of 2017, the Public Bank Group’s non-interest income recorded a healthy growth of 7.6%, mainly attributed to the favourable growth in income from the Group’s unit trust management business, as well as fee income from its transactional banking services.

Public Mutual Berhad, the Public Bank Group’s wholly-owned subsidiary, recorded 15.5% growth in profit during the nine months period ended September 2017, and continued to maintain its pole position in the domestic private unit trust industry. As at the end of September 2017, Public Mutual captured an overall retail market share of 41.8%. With 5 new unit trust funds launched over the first nine months of the year, Public Mutual currently manages a total of 138 funds with a total net asset value of RM78.5 billion under its management as at the end of September 2017.

Tan Sri Teh reiterated, “Non-interest income has remained integral to the Public Bank Group’s revenue source. The Public Bank Group will further strengthen its capability in growing this revenue stream through the offering of innovative products and proactive marketing and cross selling strategies.”

Prudent Approach in Cost Management

In the first nine months of 2017, the Public Bank Group continued to sustain an efficient level of cost-to-income ratio at 32.8%, significantly better than the banking industry’s average cost-to-income ratio of 45.8%.

Tan Sri Teh highlighted, “The Public Bank Group has put in considerable efforts to strengthen its productivity in order to sustain its cost efficiency. When rising prices and cost of compliance are exerting pressure on the Group’s expenses, the Group has remained highly committed to financial discipline while ensuring compliance with regulations.”

Sustained Strong Asset Quality

Tan Sri Teh said, “The Public Bank Group has always focused on asset quality in the pursuit of business growth. Thus, the Group has been able to sustain its stable asset quality even in challenging times. As at the end of September 2017, the Group’s gross impaired loan ratio of 0.5% continued to remain the best in the domestic banking industry.”

Overseas Operations

The Public Bank Group’s overseas operations continued to drive revenue growth for the Group. For the first nine months of 2017, the Group’s overseas operations contributed 9.8% to the Group’s pre-tax profit, mainly attributed to Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc.

Tan Sri Teh reiterated, “The Public Bank Group remains committed in growing its overseas operations, particularly in Indo-China and Hong Kong. In pursuit of the Group’s organic growth strategy, it will continue to explore opportunities for the opening of new branches and diversification of products and services to grow its regional operations.”

Healthy Capital Position

The Public Bank Group has remained well-capitalised with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 11.7%, 12.4% and 15.4% respectively as at the end of September 2017.

Tan Sri Teh emphasised, “Maintaining a healthy capital position has always been an important factor to banking resilience. It has remained a strategic action for the Public Bank Group to ensure its capitalisation complies with the regulatory requirement and is supportive of its business growth.”

Group’s Prospects

The Malaysian economy grew by a stronger than expected rate of 5.7% in the first half of 2017. The growing domestic economic activities, coupled with the firming external demand, are widely expected to underscore higher GDP growth in 2017.

On the banking business, Tan Sri Teh commented, “The banking sector will continue to benefit from the growing economy. Nevertheless, we remain cautious as downside risks will continue to exert pressure on consumer sentiment.”

Tan Sri Teh added, “With its strong foundation, the Public Bank Group has always been in good position to support the country’s economy. The Group will continue to leverage on its strong PB brand and its efficient banking resources and infrastructures to serve the public.”

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

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September 2017

18

Sep 2017

For Immediate Release

18 September 2017

Get Fabulous Gifts when You Save with Public Bank!

Public Bank has been constantly rewarding their Current/Savings account (CASA) customers by offering attractive gift items or bonus interest rates to customers. Due to encouraging responses, the Bank has launched the 3rd CASA campaign for year 2017 known as “PB Savers Reward” on 1 September 2017 which offers fabulous gifts to reward customers who deposit with the Bank. “PB Savers Reward” is open to all new and existing Public Bank individual customers. Eligible customers will be entitled to a variety of practical kitchen appliances when they deposit fresh funds into their Eligible CASA and allow the said deposit to be earmarked for six (6) months.

The Campaign offers 4 options of gift items which consist of Panasonic Cubie Steam Convection Oven, Morphy Richards IntelliChef Multi Cooker, Morgan Slow Juicer and Pensonic Mini Thermo Kettle which serve as great appliances in preparing healthy food and beverages. Customers are entitled to these gift items by depositing fresh fund of RM78,000, RM48,000, RM28,000 and RM8,000 respectively in their PLUS SA, Basic SA, PLUS Current Account or Basic Current Account. Customers may opt for more than 1 gift item as long as they fulfill the Campaign eligibility requirement.

Public Bank is also simultaneously running 2 other Fixed Deposit (FD) Campaigns namely PB Super Fixed Deposit / Term Deposit-i Campaign and PB eFD Campaign, on top of the current CASA Campaign. The PB Super Fixed Deposit / Term Deposit-i Campaign offers attractive interest / profit rate. The minimum placement per receipt for individual customer and non-individual customer are RM10,000 and RM50,000 respectively. The interest / profit will be credited on a monthly basis into customer’s designated Conventional / Islamic CASA / CASA-i. Apart from this FD Campaign, Public Bank has also ventured into going paperless and allowing customers to make FD placement and withdrawals at their fingertips. The PB eFD Campaign allows customers to enjoy promotional interest rate of 3.20% p.a. for 6 months tenure and 3.40% p.a. for 12 to 24, 36, 48 and 60 months tenure. Customer just have to place a minimum amount of RM5,000 during the Campaign period to be eligible to participate under the Campaign. The Campaign is open to all individual customers aged 18 years and above and sole proprietors who have existing conventional CASA and who have registered for PBe.

Moving forward, the Bank will continue to launch attractive deposit campaigns to reward customers for their continuous support and loyalty.

To find out more about Public Bank campaigns, customers are welcomed to visit any of our PBB branches, log on to PBB website at www.pbebank.com or call our free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.

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August 2017

15

Aug 2017

For Immediate Release

15 August 2017

Public Bank Offers Alipay Mobile Wallet Service In Malaysia

Public Bank, Malaysia’s third largest bank and Ant Financial Services Group, an affiliate company of the Alibaba Group joined hands in connecting Malaysian merchants with Alipay mobile wallet services, an online and mobile payment solution.

Alipay mobile wallet services is catered to the needs for Alipay users from China who frequently travel and shop in Malaysia, offering the convenience of payment service over carrying large amounts of cash.

With the expanding business alliance between China and Malaysia, Public Bank believes offering the seamless Alipay service to its existing and new merchants will assist to increase their sales in view of the greater opportunity from the 520 million Alipay active users.

Besides, it also provides Alipay users with better customer experience in Malaysia as it spreads across numerous segments i.e. shopping, dining, hotel stays, etc.

Currently, this service is available at all outlets of Degem Collection, Eu Yan Sang, Lazo Diamond Jewellery, L’OCCITANE, Malindo Airways, Star Cruise, Swiss Luxury Watch & Jewelry, The Swatch Group, Vitacare Pharmacy and many more merchant outlets frequented by tourists from China.

The event was held at Menara Public Bank and attended by Public Bank’s Managing Director, Tan Sri Dato’ Sri Tay Ah Lek, Deputy Chief Executive Officer, Dato’ Chang Kat Kiam, Alipay South East Asia General Manager, Mr. Dayong Zhang, and Alipay Malaysia Country Head, Ms. Greta Gunawan at Menara Public Bank with the presence of other management staff of Public Bank, officials of Ant Financial Services Group and representatives from Public Bank’s merchants.

Commenting at the launch event, Tan Sri Dato’ Sri Tay Ah Lek said, “We are very excited with the collaboration with Alipay, whose parent company Ant Financial is the world’s largest fintech startup. We will roll-out Alipay service to our existing and new in-store merchants. Alipay mobile wallet has become an alternative cashless payment for Chinese tourists.”

Concurring on the significance of this partnership, Mr. Dayong Zhang said, “This partnership will enable Alipay payment acceptance at large merchant base of Public Bank and in the end create opportunities for local merchants to better target the large number of Chinese tourists coming to Malaysia.”

About Ant Financial Services Group

Launched in 2004, Alipay currently has over 520 million active users and over 450 financial institution partners. Alipay has evolved from a digital wallet to a lifestyle enabler. Users can hail a taxi, book a hotel, buy movie tickets, pay utility bills, make appointments with doctors, or purchase wealth management products directly from within the app. In addition to online payments, Alipay is expanding to in-store offline payments both inside and outside of China. Over 10 million brick-and-mortar merchants now accept Alipay across China. Alipay’s in-store payment service is covering more than 200,000 retail stores across the world, and tax reimbursement via Alipay is supported in 24 countries and regions. Alipay currently supports 19 currencies.

About Public Bank Berhad

Founded in 1966 by Tan Sri Dato’ Sri Dr. Teh Hong Piow and listed on the Main Board of Bursa Securities Malaysia in 1967, Public Bank Berhad is today the leading financial services provider serving over five million customers in Malaysia. Known for its prudent management and strong corporate governance, Public Bank Berhad continues to be accorded international and domestic awards and accolades.

The Group continues to commit to deliver excellent customer service and to be more innovative in providing superior financial products and services to meet increasingly sophisticated customer demand. For more information, visit www.pbebank.com.

From left Dato’ Chang Kat Kiam, Tan Sri Dato’ Sri Tay Ah Lek, Mr. Dayong Zhang and Ms. Greta Gunawan at the launch event of Alipay Service between Public Bank and Alipay

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July 2017

31

Jul 2017

Tan Sri Dato’ Sri Dr. Teh Hong Piow to Relinquish Position as Chairman of Public Bank on 1 January 2019 and Stay on as Chairman Emeritus and Adviser

25

Jul 2017

For Immediate Release

25 July 2017

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM3.37 BILLION FOR THE FIRST HALF OF 2017 AND DECLARED 27 SEN FIRST INTERIM DIVIDEND

Chairman’s Review

For the first half year ended 30 June 2017, the Public Bank Group’s pre-tax profit increased to RM3.37 billion, up 5.1% from the corresponding period in 2016. Over the same period, net profit attributable to shareholders increased by 3.8% to RM2.58 billion.

On its quarterly performance, the Group’s net profit for the second quarter of 2017 of RM1.33 billion represents a 6.0% growth as compared to the second quarter of 2016.

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “The Public Bank Group has continued with its positive momentum in sustaining profitability growth. The Group’s clear and focused business strategy coupled with its prudent credit culture, continues to underpin its consistent financial performance under the current challenging operating environment.”

The Public Bank Group’s sustained profitability continued to be driven by the expansion in its loan and deposit portfolio, which led to a growth of 8.3% in its net interest income.

“With the improved profitability, the Public Bank Group achieved a net return on equity of 15.3%. The Group’s financial strength was also attributed to its strong asset quality and efficient cost management, as reflected in its gross impaired loan ratio of 0.5% and cost-to-income ratio of 33.8% as at the end of June 2017.” Tan Sri Teh added.

In view of the Group’s favourable performance, Tan Sri Teh is pleased to announce, “The Board of Directors has declared a first interim dividend of 27 Sen per share, which will result in a total dividend payout of RM1.04 billion. The first interim dividend will be paid on 17 August 2017 based on the dividend entitlement date of 9 August 2017.”

Healthy Loan and Deposit Growth

In the first half of 2017, the Public Bank Group’s total loans recorded an annualised growth rate of 3.1% to RM298.5 billion. Domestic loan growth continued to stay above industry average, growing at an annualised rate of 4.3% as compared to the annualised industry loan growth of 2.8%. Tan Sri Teh commented that, “The focus on the financing for the purchase of residential properties, passenger vehicles and lending to small and medium enterprises, has remained a market niche for the Group as it has maintained a large market share in these lending segments despite the still challenging lending market.”

On deposit-taking, the Public Bank Group’s wide market access and strong deposit franchise have enabled the Group to achieve a healthy annualised deposit growth of 4.7% to RM317.3 billion. Similarly, on the domestic front, the Group’s deposit growth stayed above industry growth, registering an annualised growth of 5.3% as compared to 5.1% annualised growth in the industry.

Tan Sri Teh said that, “The Group’s funding and liquidity position has remained healthy with its net loan-to-deposit ratio standing at 93.6% as at the end of June 2017.”

Growth in Non-interest Income

Growth momentum of the Public Bank Group’s non-interest income remained positive, underpinned primarily by its unit trust management business and transactional fee income.

Public Mutual Berhad, the Group’s wholly-owned subsidiary, continued to be a major contributor to the Group’s non-interest income. For the first half of 2017, Public Mutual’s unit trust business achieved a commendable growth of 16.2% in pre-tax profit from the same period last year. Tapping on its strong market position, Public Mutual captured a major retail market share of 43.0% in the domestic private unit trust industry. Its portfolio continued to grow as it has 135 unit trust funds with a total net asset value of RM76.9 billion under its management as at the end of June 2017.

Tan Sri Teh commented that, “While the Public Bank Group’s core business focuses on retail financing, non-interest income has always been a significant source of revenue complementing the Group’s core business. The Group also taps on its strong clientele base and retail franchise to cross-sell its wealth management products and other fee income services.”

Prudent Approach in Cost Management

As at the end of June 2017, the Public Bank Group posted a cost-to-income ratio of 33.8%, significantly better than the banking industry’s average of 45.8%.

Tan Sri Teh highlighted, “When rising costs continued to pose earnings pressure, the Public Bank Group’s long-embedded practices of good cost management has remained a competitive advantage sustaining the Group’s profitability.”

Sustained Strong Asset Quality

The Public Bank Group’s sustained sound asset quality continued to contribute to its stable profitability growth. Strict compliance culture, robust risk management and prudent credit practices have enabled the Group to maintain the lowest gross impaired loan ratio among peers, which stood at a low 0.5% as at the end of June 2017.

Tan Sri Teh emphasised, “The Public Bank Group upholds a high commitment to strong asset quality. It is a key to sustain the stability of the Group and confidence of the public, hence placing the Group in good stead to grow further, particularly in times of challenges.”

Overseas Operations

For the first half of 2017, the Public Bank Group’s overseas operations contributed 10.2% to the Group’s pre-tax profit. Tan Sri Teh said, “Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc, are the main contributors to the Group’s overseas business growth.

In addition, Vietnam will continue to be on the Public Bank Group’s overseas expansion plan. With the 100% foreign-owned bank license obtained in 2016, the Group has further expanded its business through the opening of 2 new branches in the first half of 2017. As at to date, it has 9 branches and is planning to open 4 more branches in the near term.”

Healthy Capital Position

The Public Bank Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at a healthy level at 11.8%, 12.6% and 16.4% respectively as at end-June 2017, after deducting the first interim dividend. Tan Sri Teh reiterated that “Maintaining a healthy capital position provides the Public Bank Group with good growth opportunities while ensuring compliance with regulatory requirement.”

Group’s Prospect

The Malaysian economy for 2017 is poised for higher growth as the macro condition in the global and domestic front have generally improved. The domestic operating environment will continue to face multiple headwinds arising from rising prices, volatility in global commodity prices and financial markets, and various uncertainties that are likely to spill into the real economy.

Tan Sri Teh added, “In facing the evolving environment and the shift in trend in the banking landscape, the Group will continue to play its role well as a financial intermediary to serve public needs for financial services and facilitate economic development through its organic growth strategy. Banking is a business of trust, hence the Group will continue to emphasise on prudent management for sustainable performance and stability. Nevertheless, the Group will always remain agile and flexible to changes and opportunities to better serve the interests of all its stakeholders.”

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

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May 2017

29

May 2017

For Immediate Release

29 May 2017

Earn Additional Interest on Your Savings Account with Public Bank!

Public Bank has launched the “PB Bonus Reward” Campaign on 1 May 2017 which offers bonus interest rates of up to 3.08% p.a. on top of the prevailing board rates of PLUS Savings Account (PLUS SA) and Basic Savings Account (Basic SA).

Under the Campaign, customers who place minimum fresh deposit of RM10,000 to a maximum of RM300,000 per account in their PLUS SA and Basic SA and allow the said deposit to be earmarked for four (4) months will be entitled to the bonus interest that ranges from 1.68% p.a. to 3.08% p.a. Customers are allowed to uplift the earmarking on the funds anytime with no penalty. The “PB Bonus Reward” Campaign will run for a period of four (4) months until 31 August 2017.

Besides the “PB Bonus Reward” Campaign, the Bank is also currently running the “PB UnionPay Savings Account Promotion” which offers an exclusive gift set of Panda Neck Pillow and Eye Mask when customers deposit RM2,000 in the PB UnionPay Savings Account and allow the deposit to be earmarked for (3) months. The Promotion ends 31 October 2017. The savings account comes with a UnionPay Debit Card which is currently offering benefits such as Duty Free Shop Promotion, Special Lane for China Visa Application and free GSC movie ticket.

Moving forward, the Bank will continue to launch attractive deposit campaigns to reward customers for their continuous support and loyalty.

To find out more about Public Bank campaigns, customers are welcomed to visit any of our PBB branches, log on to PBB website at www.pbebank.com or call our free phone at 1-800-22-9999 during normal working hours. Terms and conditions apply.

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25

May 2017

For Immediate Release

25 May 2017

Public Bank Clinched 4 Awards at Malaysian e-Payments Excellence Awards 2017

Public Bank Berhad (PBB) was a strong contender in the recently-held Malaysian e-Payments Excellence Awards 2017 (MEEA) after clinching four awards for its contribution to the growth of e-payments in the country.

It was an honour for PBB to have received the most prestigious award, Best e-Payment Bank, an inaugural award to recognise the bank that has pushed forward the e-payment agenda in all aspects including usage, acceptance, growth, reliability and customer experience.

According to Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear), this top accolade of the Malaysian ePayments Award 2017 was only given to the bank that displayed strength, growth, outstanding initiative and consistency across all e-Payment products.

The other three (3) awards won by PBB were: Best MyDebit Bank; Outstanding Contribution to Financial Process Exchange (FPX) Award; and Outstanding Contribution to MyDebit Award.

The awards were given out by Bank Negara Malaysia’s Governor, Y.Bhg. Datuk Muhammad Ibrahim. On hand to receive the awards on behalf of PBB was its Managing Director and Chief Executive Officer, Y.Bhg. Tan Sri Dato’ Sri Tay Ah Lek.

The awards won by PBB are a direct result of PBB’s bundling of innovative e-payment channels and stable infrastructure to provide the best support to MyClear and to meet the clients’ needs to transact in a reliable, safe and secure environment at their convenience.

“PBB will continue to give our full support towards Bank Negara’s efforts to boost the country's migration to electronic payments by introducing more e-payment initiatives and enhancing its digital banking platform to improve customer experience, at the same time to explore new FinTech collaboration initiatives,” said PBB’s Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Tay Ah Lek.

Besides being a key enabler in migrating businesses and organisations to e-Payments in Malaysia’s journey to embrace a digital economy, PBB is ever conscious of cyber security threats and is committed to put in place a well defined cyber security strategy and capability in order to protect our customers against cyber crimes.

PBB’s e-Payments journey is not a sprint but a marathon. To further intensify this journey, PBB will be launching the PBenterprise CMS solution that will allow easier and faster onboarding for businesses and also more user-friendly interface. PBB has organised extensive e-Payments forums nationwide to promote the Bank’s comprehensive online cash management and e-banking services in an effort to migrate more businesses onto the e-payments platform.

The MEEA is organised annually by the MyClear, a wholly-owned subsidiary of BNM, to recognise the contributions of the financial industry, the business community and government agencies in accelerating the country’s e-payment agenda.

(From left) Public Bank’s Chief Executive Officer/Managing Director, Y.Bhg. Tan Sri Dato' Sri Tay Ah Lek and Y.Bhg. Datuk Muhammad bin Ibrahim, Governor, Bank Negara Malaysia and Mr. Peter Schiesser, Managing Director of MyClear at the Malaysian e-Payments Excellence Awards.

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April 2017

20

Apr 2017

For Immediate Release

20 April 2017

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM1.63 BILLION FOR THE FIRST QUARTER OF 2017

Chairman’s Review

The Public Bank Group today announced a pre-tax profit of RM1.63 billion for the first quarter of 2017 on the back of a stable gross revenue of RM5.03 billion achieved during the quarter. Net profit attributable to shareholders grew by 1.5% to RM1.25 billion for the first quarter of 2017, as compared to RM1.23 billion achieved in the previous corresponding quarter.

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said that, “The Public Bank Group has placed itself for a positive start in 2017, as the Group has continued to achieve stable profitability even in times of persistent headwinds facing the banking environment. The Group’s profitability continued to be driven by its core retail banking business underpinned by healthy growth in loans and deposits during the quarter, coupled with its sustained strong asset quality.”

Tan Sri Teh added that, “The Public Bank Group continued to sustain a satisfactory set of financial performance indicators as reflected in its net return on equity of 14.9%, gross impaired loans ratio of 0.5% and an efficient cost-to-income ratio of 34.3%.”

Sustaining Growth in Loans and Deposits

In the first quarter of 2017, total gross loans of the Public Bank Group increased at an annualised rate of 3.6%, with domestic loans growing faster at an annualised rate of 4.7%. The Group’s growing loans portfolio focusing on the financing of residential properties and commercial lending to small and medium enterprises, continued to capture major market share in the domestic lending market.

In the deposit-taking business, the Group achieved an annualised 8.1% growth in total customer deposits for the first quarter of 2017, underpinning a stable base for the Group’s funding position. On the domestic front, the Group’s total deposits grew at an annualised rate of 7.9%.

Tan Sri Teh commented that, “As the Public Bank Group’s loan base expands, the Group places great emphasis on maintaining a healthy funding structure to support its loan business. The Group’s healthy deposit growth has continued to form a stable funding base for the Group in managing its liquidity needs.”

Contribution from Non-interest Income

The Public Bank Group’s unit trust income remained one of the main contributors to the Group’s non-interest revenue. Through the Group’s wholly-owned subsidiary, Public Mutual Berhad, the Group’s unit trust business has continued to contribute positively to its financial performance.

Tan Sri Teh said, “The Group’s unit trust business through Public Mutual recorded a double-digit growth of 11.1% in pre-tax profit for the first quarter of 2017, as compared to the previous corresponding period. Public Mutual also continued to maintain its strong market position, capturing 45.8% retail market share of the private unit trust industry. As at the end of March 2017, Public Mutual has 135 unit trust funds under its management with a total net asset value of RM74.4 billion.”

The Public Bank Group’s non-interest income also continued to be driven by its foreign exchange business and transactional fee income from its banking operations. Tan Sri Teh reiterated, “The Group will continue to reinforce its efforts to drive non-interest revenue as a key strategy to generate higher income in sustaining the Group’s return on equity.”

Prudent Cost Management

The Public Bank Group’s cost-to-income ratio increased from 32.3% in 2016 to 34.3% in the first quarter of 2017, but still remained efficient as compared to the banking industry’s cost-to-income ratio of 45.8%.

Tan Sri Teh highlighted that, “As rising prices linger in the business environment, the banking sector is not immune from the impact of it. Further, banks are faced with increasing cost of compliance for the enhancement of banking stability. While the Public Bank Group’s cost-to-income ratio has increased, it has remained the lowest in the domestic banking industry, reflecting the Group’s prudent cost management while pursuing continued business growth."

Tan Sri Teh further added, “High productivity and cost efficiency will remain a top agenda of the Public Bank Group in sustaining the Group’s competitiveness moving forward.”

Upholding Strong Asset Quality

The Public Bank Group continued to uphold its strong asset quality, with its gross impaired loans ratio remaining low at 0.5% as at the end of March 2017, as compared to the Malaysian banking industry’s gross impaired loans ratio of 1.6%.

Tan Sri Teh said, “The Public Bank Group is strongly committed to strict and prudent credit risk management. Resilient asset quality has remained a quality attribute of the Group in challenging times.”

Further, the Public Bank Group’s strong asset quality was complemented by its healthy loan loss coverage ratio of 104.0% as at the end of March 2017, higher than the banking industry’s coverage ratio of 90.8%.

Overseas Operations

For the first quarter of 2017, the Public Bank Group’s overseas operations contributed 10% of the Group’s overall pre-tax profit. Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc are the main contributors to the Group’s overseas business profits.

The Public Bank Group has also recorded commendable growth in its Vietnam’s operation, through its wholly-owned subsidiary, Public Bank Vietnam Limited (PBVN). Tan Sri Teh added, “The acquisition of the remaining equity interest in PBVN in 2016 has resulted in very encouraging performance. The Group will continue to undertake expansion exercise in Vietnam, with targeted opening of six new branches in 2017.”

“The Public Bank Group continues to see huge growth potential in Indochina. Expansion through the opening of branches, and enhancement of products and services remain on the agenda in strengthening Public Bank’s presence in Cambodia, Vietnam and Laos.” Tan Sri Teh added.

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 11.4%, 12.2% and 15.2% respectively as at the end of March 2017.

Tan Sri Teh emphasised that, “Ensuring a stable and healthy capital position has continued to be the impetus for the Public Bank Group to grow further. The Group’s proactive capital management is a key competency in support of its growth strategies while ensuring the fulfillment of regulatory requirement.”

Group’s Prospect

“The prospect of the domestic banking industry will continue to hinge largely on the operating environment condition. For 2017, the ongoing expansion of the Malaysian economy anchored by sustained domestic demand is expected to remain conducive to banking business growth.” Tan Sri Teh said.

“However, the various headwinds facing the economy will continue to place downside pressure to banks’ operation. While the Public Bank Group is confident that its strong market position and PB Brand will continue to drive business growth, the Group will remain agile and responsive to various challenges and opportunities. The Group will continue to take proactive efforts to ensure it remains on the trajectory towards meeting its 2017 growth targets.” concluded Tan Sri Teh.

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

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March 2017

30

Mar 2017

For Immediate Release

30 March 2017

Tan Sri Teh Hong Piow Accorded The Asian Corporate Director Recognition Award For The 7th Time

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow has been awarded for the 7th consecutive time, the ‘Asian Corporate Director Recognition Award’ by Corporate Governance Asia on 30 March 2017 at Menara Public Bank, Kuala Lumpur.

The award was presented to Tan Sri Teh by Mr. Aldrin Monsod, Founder, Managing Director and Publisher of Corporate Governance Asia and witnessed by Tan Sri Dato’ Sri Tay Ah Lek, Managing Director of Public Bank and Dato’ Chang Kat Kiam, Deputy CEO of Public Bank. At the same event, Mr. Aldrin Monsod also presented the ‘Icon on Corporate Governance Award’ to Public Bank for the 12^th consecutive year from 2005 to 2016.

With this award, Tan Sri Teh has received a total of 49 personal to holder awards in recognition of his exemplary commitment to excellence and lifetime dedication to the banking industry in the Asian Region while the Bank has garnered more than 400 awards over the years.

In his citation during the award presentation, Mr. Aldrin Monsod said, “Public Bank’s unflagging commitment to prudent management and performance excellence has enabled the Bank to gain various international recognitions, including the highest awards on corporate governance. Amid any prevalent business cycle, it conducts its business with integrity, enhancing a business model that is focused on delivering value creation over the long-term for customers, employees, shareholders, the community where it operates and the environment”.

“For all its achievements, Tan Sri Dato’ Sri Dr. Teh Hong Piow implemented the best banking practices in Public Bank and in many ways, he is Public Bank himself. After all, he sets it up and created the brand that resonates in the banking industry, as a Bank of exemplary excellence and the Bank of preferred choice”.

“Tan Sri Dato’ Sri Dr. Teh Hong Piow has been an inspiration to many banks in Asia. Many of the banks are emulating the way Public Bank manages its business. The culture which Tan Sri has imbued among the staff has set it apart. Many are inspired by Tan Sri Teh’s astute leadership, strong commitment to excellence and his benevolence of giving and sharing. I personally have encountered the first-class counter service at Public Bank’s branches and the unique experience was like being taken care of by a caring family member”, said Mr. Aldrin Monsod.

Tan Sri Teh in his acknowledgement said, “It is indeed an honour to be bestowed with these two awards for several years from the Corporate Governance Asia which is an esteemed institution renowned for its strong reputation worldwide. I would also like to dedicate these awards to our customers, employees and shareholders who have loyally supported our Bank over the years which has allowed us to maintain exceptional corporate governance standards”.

Tan Sri Dato’ Sri Dr. Teh Hong Piow receiving the awards from Mr. Aldrin Monsod. On his right are Tan Sri Dato’ Sri Tay Ah Lek and Dato’ Chang Kat Kiam

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27

Mar 2017

For Immediate Release

27 March 2017

Public Bank’s 51^st Annual General Meeting Held On 27 March 2017

In conjunction with Public Bank’s 51^st Annual General Meeting held on 27 March 2017, 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 2016.

Performance Review

Tan Sri Teh said, “In 2016, the Public Bank Group celebrated its 50^th year of operations in Malaysia. Although the operating environment was challenging, the Group kept its earnings steady and achieved another profit milestone with pre-tax profit of RM6.55 billion in 2016 as compared to RM6.49 billion in 2015. Net profit attributable to shareholders grew by 2.9% to RM5.21 billion in 2016, whilst earnings per share increased by 2.8% to 134.8 sen in 2016.”

Tan Sri Teh added, “The Public Bank Group remained top amongst its banking peers in Malaysia with the highest net return on equity of 16.5% and lowest cost to income ratio and gross impaired loans ratio of 32.3% and 0.5% respectively.”

Tan Sri Teh highlighted that, “Despite a tougher operating environment in 2016, the Public Bank Group’s loans and deposits increased by 7.5% and 2.9% respectively, higher than the industry’s loans and deposits growth of 5.3% and 1.5% respectively. As a result, market shares of loans and deposits in the domestic market have further improved.”

Tan Sri Teh added, “In view of the Group’s favourable performance in 2016, a second interim dividend of 32 sen was paid on 28 February 2017. Together with the first interim dividend of 26 sen paid in August 2016, the shareholders would have received a total dividend of 58 sen per share for 2016.” The total dividends paid for 2016 was RM2.24 billion, representing a payout of 43.0% of the Group’s net profit for 2016.

Above-industry Growth in Loans and Customer Deposits

The Public Bank Group’s lending activities to the retail banking segment remained its key strategic focus, driven by the extension of credit mainly for the purchase of residential properties and passenger vehicles as well as commercial lending to small and medium enterprises. Collectively, this formed 85% of the Group’s total loans and financing as at the end of 2016.

Tan Sri Teh further added, “As a result of above industry loans growth, the Group’s domestic loans market share continued to improve, from 17.4% as at the end of 2015 to 17.7% as at the end of 2016. The Group retained its top position in the domestic financing for purchases of residential properties, commercial properties and passenger vehicles, with market shares of 19.4%, 34.7% and 29.6% respectively as at the end of 2016.

On the funding side, the Group continued to achieve above industry customer deposits growth amid challenges encountered in the deposits market. This led to a further increase in the domestic market share of customer deposits to 16.7% as at the end of 2016, from 16.6% a year ago.”

Superior Asset Quality

Tan Sri Teh said, “The Public Bank Group’s asset quality remains the best amongst Malaysian banking groups. Gross impaired loans ratio remained low at 0.5% in 2016 and was well below the banking industry’s gross impaired loans ratio of 1.6%.”
The Group's loan loss coverage ratio stood at 102.7% as at the end of 2016 which was higher and more prudent than the Malaysian banking industry’s ratio of 90.2%. The Group’s loan loss coverage was significantly higher at 248.5% with the inclusion of regulatory reserves.

International Operations

In 2016, the Public Bank Group further expanded its operations in Vietnam with the transformation of VID Public Bank from a joint venture bank to a 100% foreign-owned bank in Vietnam. The acquisition of the remaining 50% equity interest in VID Public Bank was completed and VID Public Bank was renamed as Public Bank Vietnam Limited on 1 April 2016.
The Group’s overseas operations recorded a 8.5% growth in pre-tax profit from RM572.2 million in 2015 to RM620.7 million in 2016, contributing 9.5% to the Group’s pre-tax profit in 2016.

Steady Net Income Growth

In 2016, the Group’s total net income increased by 4.3% to RM9.96 billion, supported by continued growth in net interest income as well as fee and commission income. Besides sustaining a healthy loans growth and resilient deposits structure which contributed to the Group’s net interest income growth, the Group has continued to emphasise on growing its fee-based revenue.

Tan Sri Teh said, “In 2016, the Group’s unit trust management business and transactional banking fee income remained positive, contributing two-thirds of the Group’s total non-interest income. Public Mutual, the Group’s wholly-owned unit trust management company, recorded a pre-tax profit growth of 5.9% in 2016 and remained the market leader in the private unit trust industry with a retail market share of 46.8%. Public Mutual’s total assets under management stood at RM70 billion with 133 funds under its management.”

Stable Capital Position

The Public Bank Group’s capital position remained stable with its common equity Tier I capital ratio, Tier I capital ratio and total capital ratio standing at 11.4%, 12.2% and 15.5% respectively as at the end of 2016, after deducting second interim dividend.
Tan Sri Teh commented that, “The Group will continue to be proactive in maintaining a healthy level of capital at all times to support the Group’s business growth strategies whilst maximising its shareholders’ return.”

Superior Returns to Shareholders

The Public Bank Group’s ability to deliver consistent and excellent returns to its shareholders, even during challenging times, clearly demonstrates the defensive quality of the investment made in Public Bank.
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 RM2.94 million as at 31 December 2016. In addition, he would have received total gross dividends of RM1.16 million. This translates into a total value of RM4.10 million, representing a remarkable compounded annual rate of return of 19.0% for each of the 49 years since 1967.”

Recognition of Banking Excellence

Tan Sri Teh commented that, “The Public Bank Group continued to garner international and national awards in recognition of its banking excellence.” Some of the notable awards received include:

Best Domestic Bank in Malaysia 2016 by FinanceAsia
50 Years of Asian Banking Excellence Award by FinanceAsia
Best Bank in Malaysia 2016 by Alpha Southeast Asia
Best Bank in Malaysia 2016 by Euromoney
Best Retail Bank in Malaysia 2016 by The Asian Banker
Strongest Bank by Balance Sheet in Malaysia 2016 by The Asian Banker
Best Domestic Bank in Malaysia 2016 by Asiamoney
Best Domestic Bank in Malaysia 2016 by The Asset
Domestic Retail Bank of the Year - Malaysia 2016 by Asian Banking & Finance
Bank of the Year in Malaysia 2016 by The Banker
Malaysia Automotive Finance Company of the Year 2016 by Frost & Sullivan
The BrandLaureate Best Choice Brand Award in Leadership in Banking 2015-2016 by Asia Pacific Brands Foundation
The BrandLaureate Industry Champion Brand Icon Leadership Award for Banking 2016 by Asia Pacific Brands Foundation
The Asset Platinum Award 2016 for Excellence in Governance, CSR and Investor Relations by The Asset
Corporate Governance Asia Recognition Award 2016 for Malaysia (Icon on Corporate Governance) by Corporate Governance Asia
The Edge Billion Ringgit Club Corporate Awards 2016: Highest Growth in Profit Before Tax Over Three Years Award for Super Big Cap Companies – Companies With More Than RM40 billion Market Capitalisation by The Edge Billion Ringgit Club

Outlook

On the strategic directions and outlook for the Public Bank Group, Tan Sri Teh commented that, “Notwithstanding the tougher operating environment ahead, the Group will continue to focus on expanding its businesses organically by sustaining its presence and positions in the domestic retail segment.

As the Group moves beyond its 50^th year, we are confident of continued profitability to sustain the Group’s position as a premier bank of excellence.”

Shareholders at the Bank's 51st Annual General Meeting

Y. Bhg. Tan Sri Dato' Sri Dr. Teh Hong Piow giving his welcoming address

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21

Mar 2017

For Immediate Release

21 March 2017

Public Bank Launches the PB Quantum Visa and PB Quantum Mastercard Credit Cards

Public Bank Berhad has on 21 March launched the PB Quantum Visa and PB Quantum Mastercard Credit Card, offering the market exclusive privileges that compliment lifestyle of today’s Malaysian discerning consumers.

The PB Quantum Visa and PB Quantum Mastercard Credit Cards are targeting mass market segment with a minimum annual income of RM36,000. To cater to consumers’ lifestyle, the cards offer 5% cash back on online, dining, entertainment and departmental stores transactions. On top of cash back, cardmembers will also earn up to 2x VIP Points for other retail purchases. As a value-added benefit, cardmembers are able to convert any retail purchase of more than RM1,200 in a single receipt to 12 months FlexiPay Plan at 0% interest rate. This FlexiPay Plan is introduced exclusively for PB Quantum Visa and PB Quantum Mastercard Credit Cards.

As part of the launch celebration, complimentary JBL GO speaker will be given away to Cardmembers with minimum accumulative retail spend of RM100. To further complement urban lifestyle of the cards’ target segment, Public Bank Berhad will be offering special 1-for-1 Deals at major dining outlets in Malaysia namely Sakae Sushi, Domino’s, Espressolab and Komugi.

Present at the launch of PB Quantum Visa and PB Quantum Mastercard Credit Cards in Kuala Lumpur were Tan Sri Dato’ Sri Tay Ah Lek, Managing Director of Public Bank Berhad and Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank Berhad, together with Mr. Ng Kong Boon (KB Ng), Visa Country Manager for Malaysia and Mr. Perry Ong, Country Manager, Malaysia and Brunei, Mastercard.

Commenting at the launch, Tan Sri Dato’ Sri Tay said, “The PB Quantum Visa and PB Quantum Mastercard Credit Cards are the latest product introduced by the Bank as part of our initiative to offer cards that cater to the lifestyle of younger generation. This product is also well-suited for customers with fast-paced lifestyle with preference for online shopping, dining and entertainment.”

“We congratulate Public Bank on the launch of its new PB Quantum Visa Credit Card. This card is enabled with Visa payWave contactless payment technology to provide Malaysian consumers with a faster and more convenient way to pay for everyday purchases. In Malaysia, we have seen Visa payWave transactions exceeding two million as of February 2017 and month-on-month double-digit growth. We are confident that this will help displace more cash in the market, in line with Bank Negara Malaysia’s goal of reducing cash in the market,” said KB Ng, Visa Country Manager for Malaysia.

“The launch of the PB Quantum Mastercard Credit Card is an extension of our continued collaboration with Public Bank to offer consumers an innovative digital payment solution, with rewards and benefits, designed to meet their lifestyle demands. We know that consumers today also prioritize safety and convenience in their commerce experience. The card’s contactless feature allows consumers to make purchases seamlessly to enjoy a frictionless payment experience. This initiative is important to support the growing acceptance and usage of contactless payments in Malaysia,” said Perry Ong, Country Manager, Malaysia and Brunei, Mastercard.

To find out more about this Card, customers are invited to visit customer service representatives at any of our branches, log on to Public Bank’s website at www.pbebank.com or call PB Customer Service at 03-2176 8333. Terms and conditions apply.

From left Mr. Ng Kong Boon (KB Ng), Visa Country Manager for Malaysia, Tan Sri Dato’ Sri Tay Ah Lek, Managing Director of Public Bank Berhad, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank Berhad and Mr. Perry Ong, Country Manager, Malaysia and Brunei, Mastercard at the launch of PB Quantum Visa and PB Quantum Mastercard Credit Cards in Menara Public Bank, Kuala Lumpur.

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14

Mar 2017

For Immediate Release

14 March 2017

Tan Sri Teh Hong Piow Awarded The Medal For The Development Of Vietnam Banking Industry

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow has been awarded the “Medal for the Development of Vietnam Banking Industry” on 11 March 2017, the first foreign Banker in Vietnam to be awarded this medal.

This award was another feather in Tan Sri Teh’s long list of lifetime accolades and recognition and with this award Tan Sri Teh has received a total of 47 personal to holder awards in recognition of his exemplary commitment to excellence and lifetime dedication to the banking industry in the Asian Region.

Tan Sri Dato’ Sri Tay Ah Lek, Managing Director of Public Bank during his congratulatory speech for Tan Sri Teh said, “This esteemed award, presented by the Governor of the State Bank of Vietnam symbolizes the deep appreciation and sound recognition for Tan Sri Dato’ Sri Dr. Teh Hong Piow’s manifold contribution to the construction and development of Vietnam’s banking industry. Tan Sri Teh has certainly achieved a high accolade in society. Being bestowed with such a prestigious award is truly befitting as the man whose consistent track record attests to his total commitment towards excellence. As a leader whose leadership is practiced not so much in words as in action, Tan Sri Teh truly inspires us to follow his footsteps towards extraordinary achievements.”

“It is a proud moment for all of us in Public Bank as we get to share in Tan Sri Chairman’s joy of receiving this recognition. While such awards are personal triumphs for Tan Sri Chairman, we as members of his corporate family, cannot help but feel an equal sense of achievement and pride,” added Tan Sri Tay.

The prestigious award comes with a medal and certificate personally signed by the Governor of the State Bank of Vietnam, H.E. Le Minh Hung was presented at the ceremony that was held at the Mines International & Convention Centre.

Public Bank Vietnam (PBVN), formerly known as VID Public Bank was one of the first joint-venture banks in Vietnam that was established on 30 September 1991 with equal stake joint-venture between the Bank for Investment and Development of Vietnam (BIDV) and Public Bank Berhad (PBB) of Malaysia. The Bank commenced its operations in May 1992 in its first branch in Hanoi providing a convenient platform for the Malaysian business community to conduct business operations in Vietnam. Today the Bank has successfully expanded its network to all the major cities in the country with a total of seven branches focusing on retail banking business to serve a wider reach and spectrum of customers in Vietnam and remains one of the most profitable, reputable and prudent banks in the country.

“I am truly honoured to be bestowed with this medal. Since its inception in 1992, Public Bank Vietnam than known as VID Public Bank and being one of the first joint-venture banks in Vietnam has indeed journeyed a long way parallel with the development of the country. A year ago we created another significant milestone in Public Bank Vietnam’s 24 years banking journey when Public Bank was granted the 100% foreign-owned bank license. For this I wish to record our gratitude to the State Bank of Vietnam and the people of Vietnam for their trust in us to be a partner in the nation’s development and progress especially in the banking industry. I would also like to dedicate this award to our customers, shareholders and business associates,” said Tan Sri Teh in his acknowledgement.

(From left to right) : Mr. Chee Keng Eng, General Director of Public Bank Vietnam, Tan Sri Dato’ Sri Tay Ah Lek, Managing Director of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow, Founder and Chairman of Public Bank and Mr. Phan Ying Tong, Regional Head of Indo-China Operations of Public Bank at the award presentation ceremony

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February 2017

2

Feb 2017

For Immediate Release

2 February 2017

Chairman’s Review

The Public Bank Group accomplished another profit milestone following the favourable set of financial results recorded in 2016. The Group registered a pre-tax profit of RM6.55 billion as compared to RM6.49 billion achieved in previous year. Net profit attributable to shareholders grew by 2.9% to RM5.21 billion during the year.

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “In this 50th anniversary of the Public Bank Group’s formation, the Group has demonstrated the ability to generate stable profitability amid the increasing challenging operating environment. This was attributed to the Group’s proactive organic growth strategy with prudent banking practices, which has remained an edge in the current competitive banking landscape.”

On the Public Bank Group’s balance sheet growth, gross loans as at the end of 2016 stood at RM294.0 billion, representing a growth of 7.5% as compared to a year ago. Customer deposits grew by 2.9% to reach RM310.0 billion as at the end of 2016.

Tan Sri Teh commented that, “With the favourable financial performance, not only did the Public Bank Group continue to preserve its superior track record of 50 years of unbroken profitability since its inception in 1966, it also continued to be at the forefront amongst its domestic banking peers in Malaysia by delivering high net return on equity of 16.5% as well as maintaining low gross impaired loan ratio of 0.5% and efficient cost-to-income ratio of 32.3% in 2016.”

In view of the Public Bank Group’s favourable performance in 2016, Tan Sri Teh announced that, “The Board of Directors has declared a second interim dividend of 32 sen, taking full year dividend for 2016 to 58 sen.” The total dividend paid and payable for 2016 amounted to RM2.24 billion and represents a total payout of 43.0% of the Group’s net profit for 2016.

Above-Industry Loan and Deposit Growth

Tan Sri Teh highlighted that, “Despite the intense competition amongst banks for market share, the Public Bank Group continued to achieve above industry loan performance. The Group recorded total loan growth of 7.5%, with its domestic loan growth standing at 7.2% compared to the domestic banking industry’s loan growth of 5.3%, leading to an increased market share of 17.7% in the domestic lending market.”

Lending to the retail banking segment remained the key strategic focus of the Public Bank Group, with consumer financing for the purchase of residential properties and passenger vehicles, and extension of credit to small and medium enterprises (“SME”). As at the end of 2016, the Group’s retail and SME loan portfolio collectively accounted for 85% of its total loans.

On deposit-taking, the Public Bank Group continued to achieve above industry deposit growth amid challenges encountered in the deposit market. During the year, the Group’s total customer deposits grew by 2.9% compared to the domestic banking industry’s deposit growth of 1.5%.

Steady Net Income Growth

The Public Bank Group has demonstrated the ability to generate steady net income growth despite challenges in the operating environment. In 2016, total net income of the Group grew by 4.3% to RM9.96 billion, supported by continued growth in the net interest income and fee and commission income.

Tan Sri Teh emphasised that, “Besides sustaining a healthy loan growth and resilient deposit structure which contributes to its net interest income growth, the Public Bank Group has continued to place great emphasis in growing its fee-based revenue, leveraging on its strong retail franchise, superior customer service and effective cross selling initiatives. In 2016 the Group’s unit trust management business and transactional banking fee income remained positive, contributing two-thirds of the Group’s total non-interest income.”

Public Mutual Berhad (”Public Mutual”), the Public Bank Group’s wholly-owned subsidiary, reported a profit growth of 5.9% for 2016 and remained as the market leader in the private unit trust industry with a retail market share of 46.8%. As at the end of 2016, Public Mutual has 133 funds and a total net asset value of RM70.3 billion under its management.

To further drive the Public Bank Group’s unit trust business, Public Mutual will continue to maintain its strong brand and leading market position in the private unit trust industry in Malaysia through the delivery of efficient customer service to its clients as well as by expanding and diversifying its product range to meet investors’ demand.

Sustaining Cost Efficiency

As a result of rising costs of doing business as well as the increasingly complexity of the banking business, the Public Bank Group’s cost-to-income ratio has increased from 30.5% in 2015, but still remained efficient at 32.3% in 2016. This is well below the banking industry’s average cost-to-income ratio of 48.8%, sustaining the Group’s position as the most cost-efficient bank in Malaysia.

Tan Sri Teh commented, “The Public Bank Group sustained the most efficient level of operating costs relative to its business and revenue growth. Consistently, the Group always strives to enhance productivity while adopting efficient cost measures in all aspects of its operations.”

Preserving Asset Quality

Tan Sri Teh highlighted that, “Amid the prevailing economic uncertainties and challenges, the Public Bank Group continued to demonstrate resilience in its asset quality.”

As at the end of 2016, the Public Bank Group’s gross impaired loan ratio stood at 0.5%, continued to remain significantly lower than the banking industry’s ratio of 1.6%. The Group’s low impaired loan ratio presents a good indication of the Group’s prudent credit risk management practices.

Meanwhile, the impaired loans of the Group was well covered, with loan loss coverage ratio of 102.7% as at the end of 2016, as compared to the banking industry’s coverage ratio of 90.2%.

Overseas Operations

The pre-tax profit of the Public Bank Group’s overseas operations grew by 8.5% from RM572 million in 2015 to RM621 million in 2016, contributing 9.5% to the Group’s overall pre-tax profit for 2016.

Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc, both subsidiaries of Public Bank, continued to be the main contributors to the Group’s overseas business growth.

Tan Sri Teh reiterated that, “The Group remains committed to expand its presence in the region through organic growth strategy and will continue to transfer its best practices from its domestic operations to accelerate business growth in its overseas operations.”

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 11.4%, 12.2% and 15.5% respectively as at the end of 2016.

Tan Sri Teh commented, “The Group will continue to be proactive in maintaining a healthy level of capital at all times to support the Group’s business growth strategies whilst maximising its shareholders’ return.”

Group’s Prospect

The operating conditions will continue to be even more challenging in 2017, with strong economic headwinds stemming from policy uncertainties in the US, the Brexit negotiation, political uncertainties in Europe, moderation in China’s economic growth and volatility in global oil prices. The financial and foreign exchange markets will continue to face volatility. While the Malaysian economy is not expected to be insulated from these headwinds, the Country’s sustained domestic demand and continued accommodative monetary policy are expected to remain supportive of continued expansion of the economy, with GDP expected to grow at a stable 4.0 – 5.0% in 2017.

With continued growth in economy, albeit at a moderate pace, coupled with sound banking fundamentals, Tan Sri Teh is positive on the sustainability of earnings of the Public Bank Group in 2017 and commented, “The Group has weathered various headwinds and challenges over the past 50 years of its banking operation. The Group had learned and grown stronger along the way. It has also validated the Group’s time-tested strength, sustaining the trust and confidence of its stakeholders. The Group is confident of continued profitability in 2017 and will strategise around its key focus on the organic growth in retail banking business. Vigilance and agility remain key in the Group’s operation amid the macro uncertainties.”

“Stepping into the next half of the century of the Public Bank Group, the Group will continue to strive further to strengthen its position as a premier bank of excellence.”

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January 2017

11

Jan 2017

For Immediate Release

11 January 2017

Public Bank And UnionPay International Launched PB UnionPay Lifestyle Debit Card

UnionPay International (UPI) reaffirms its presence in Malaysia by inking a first-of-its-kind partnership with Public Bank (PB), the third largest bank in Malaysia. The PB UnionPay Lifestyle Debit Card, launched in December 2016, is targeted at customers and businessmen who are frequent travelers to Asia.

Poised as the best travel companion, PB UnionPay Lifestyle Debit Card, which is issued upon opening of PB UnionPay Savings Account, will give Cardmembers a range of perks and benefits. A PB UnionPay Lifestyle Debit Cardmember can access the Priority Lane at Chinese Visa Application Service Centre in Kuala Lumpur and Kuching to expedite the submission and processing of Visa application. Besides, up to 10% discount is offered to these cardmembers at 100 participating international airports duty free shops. PB UnionPay Savings Account offers 0.5% p.a. flat interest rate and RM10 monthly cash rebate for accounts with a minimum of RM10,000 Month-To-Date Average Balance and no over-the-counter transaction for the month.

In conjunction with the launch, Public Bank is offering complimentary access to Plaza Premium Lounge Malaysia to partake a host of facilities that will make traveling more comfortable and satisfying. A Panda neck pillow and eye mask, semblance from the card design, will be given to new PB UnionPay Savings Account holders with deposit amount of RM2,000 which is earmarked for 3 months. Gifts are available while stocks last.

Public Bank is the third largest banking group in Malaysia headquartered in Kuala Lumpur, Malaysia, and entered into its 50th year of operations in 2016 with a total group asset size of RM363.76 billion at the end of 2015. With an extensive reach to its customers via a network of 259 well distributed branches and over 2,000 self-service terminals in Malaysia, this partnership between UPI and PB aims to provide PB customers with greater mobility within the region through the use of its high quality and secure cross-border payment services.

“We are very excited to have Public Bank on board as our strategic partner for our issuing in Malaysia,” said Mr. Wenhui Yang, General Manager of UPI Southeast Asia. “UnionPay International is fully aligned with Public Bank’s focus on providing the most efficient services to its customers through the innovation of new banking services, and we believe that this partnership will put us in a good position to serve the needs of consumers and businesses in Malaysia.”

“We are proud to be the first local bank in Malaysia who had launched UnionPay card which offers various solutions to fit our customers’ financial and lifestyle needs. With the expanding business alliances between China and Malaysia, Public Bank continues to progress and expand in order to become the first choice of expatriates and students from China for their banking service needs as this card serves them well whenever they are in China, Malaysia or any other 160 countries and regions that accept UnionPay cards.” said Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank.

About Public Bank Berhad

Founded in 1966 by Tan Sri Dato’ Sri Dr. Teh Hong Piow and listed on the Main Board of Bursa Malaysia in 1967, Public Bank Berhad is today the leading financial services provider serving over six million customers in Malaysia. Known for its prudent management and strong corporate governance, Public Bank Berhad continues to be accorded international and domestic awards and accolades.

The Group continues to commit to deliver excellent customer service and to be more innovative in providing superior financial products and services to meet increasingly sophisticated customer demand. For more information, visit www.pbebank.com.

About UnionPay International

UnionPay International (UPI) focuses on the growth and support of UnionPay’s global business. In partnership with more than 1,000 institutions worldwide, UPI has enabled card acceptance in 160 countries and regions outside the Chinese mainland with issuance in 40 countries and regions. UPI provides high quality, cost effective and secure cross-border payment services to the world’s largest Cardholder of over 5.8 billion ensuring convenient local services to a growing number of global UnionPay Cardholders and merchants.

For more information about UPI, please visit www.unionpayintl.com, follow “UnionPay International” on Facebook, Sina Weibo or WeChat, or download its official mobile application by searching “UnionPay International” in Apple’s App Store or Google’s Play Store.

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Media Release