Public Bank Launches the Red Carpet Banking (RCB) Exclusives and PB RCB Mastercard Premier Debit Cards

December 2018

20

Dec 2018

For Immediate Release

20 December 2018

Tan Sri Teh Hong Piow Accorded The Best of Best Brand Leadership Award 2018 – Overall Championship

Public Bank’s Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow has done it again with the latest award of the “The Best of Best In Brand Leadership Award 2018 – Overall Championship” by the Asia Pacific Brands Foundation.

The award was presented by Dr. KKJohan, President, The BrandLaureate at a ceremony held at the Majestic Hotel, Kuala Lumpur on 20 December 2018.

This latest personal-to-holder award is in acknowledgement of Tan Sri Teh’s leadership, one that not only brought success to Public Bank but also inspires and motivates many with his vision and wisdom.

Dr. KKJohan in his citation said, “As the key driving force of Public Bank, Tan Sri Teh has steered the Bank to become the largest private bank in Malaysia for the past 50 years with your leadership; a leadership that is well grounded on the foundation of strong vision, diligence, innovation, integrity, responsibility and concern.”

“In Corporate Malaysia, Tan Sri Teh’s leadership is hard to match and it has become the benchmark of excellence for the industry and for leaders who aspire to become a strong and dynamic Founder and Chairman like your goodself,” he said.

“It is amazing that at 88, many would have rested on their laurels. However, Tan Sri Teh, despite his age, still possesses the zest, passion and determination to see the love of his life, Public Bank, continue to grow and prosper. Having been through many stress tests in his 50 over years of banking including the various financial crisis, one can only be in awe of his business acumen,” he further added.

Tan Sri Teh in acknowledging the award said, “Being the Founder and Chairman is a coveted position which is more than simply ‘calling the shots’. It means earning respect and inspiring the entire organisation to pursue excellence for the good of the company.”

“Excellence requires discomfort. It cannot be an exception but has to be a prevailing attitude. To arrive at excellence, everyone must adopt the dream as a blueprint and consistently prescribe to a set of shared values.”

“In Public Bank, traditional values still hold true. When one is a custodian of public funds and is entrusted with the commodity called money, there is no substitute for integrity, trust and good governance. That is why I always subscribe to the principle that we ‘Do the right thing’ even when nobody is looking,” added Tan Sri Teh.

Tan Sri Teh dedicated the award to the Management team and all staff of the Public Bank Group for their unwavering commitment to excellence and loyal dedication for continuous success which have played a large part in him winning the award.

At the same night, Public Bank was also bestowed with The BrandLaureate CSR BrandLeadership Awards 2018 - Leadership in CSR.

With these latest awards, the Bank has received more than 580 corporate awards of excellence and distinction and Tan Sri Teh has amassed 42 personal-to-holder awards of lifetime excellence and achievements and exemplary leadership.

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

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7

Dec 2018

For Immediate Release

7 December 2018

Public Bank Launches the Red Carpet Banking (RCB) Exclusives and PB RCB Mastercard Premier Debit Cards

Public Bank Berhad has on 7 December 2018 launched the Red Carpet Banking (RCB) Exclusives and PB RCB Mastercard Premier Debit Cards which marks an important milestone for the Bank in growing the Bank’s high networth customer base.

To-date there are seven (7) RCB Centres located at Wilayah Persekutuan, Johor and Melaka. Moving forward to 2019, Public Bank will expand its RCB services throughout the country to reach broader high networth market and enable more customers to enjoy the RCB benefits and privileges offered by the Bank.

The launches of RCB Exclusives and PB RCB Mastercard Premier Debit Cards took place at W Hotel Kuala Lumpur. Present at the launch were 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, together with Mr. Perry Ong, Country Manager, Malaysia and Brunei of Mastercard.

Tan Sri Dato’ Sri Tay Ah Lek highlighted “The RCB Exclusives offers RCB customers abundance of benefits such as PB RCB Premier Fixed Deposit / Term Deposit–i Campaign, PB RCB Current and Savings Account Campaign, RCB Membership Sign-Up Campaign and RCB Customer Referral Programme.

The PB RCB Premier Fixed Deposit / Term Deposit-i Campaign offers FD interest rates / profit rates of up to 4.4% p.a. for 12-month placement while PB RCB CASA Campaign offers 4 types of luxury gift items i.e. Breville Barista Express, Okamizu Food Detoxifier, Grubel Wine Chiller and Lushberry 20” Trolley case for RCB customers who place a prescribed fresh deposit amount into CASA.”

In addition, the RCB Membership Sign-Up Campaign offers a selection of sign-up gift exclusively for new RCB members such as Morgan Mini Bar, Panasonic Nanoe Air Purifier, Cuckoo Multi Cooker and Noritake Hampshire Gold Dinner Set. The RCB Customer Referral Programme offers generous rewards to our existing RCB members for every successful referral.

In conjunction with the launch of the RCB Exclusives, two (2) new PB RCB Mastercard Premier Debit Cards namely RCB Elite Debit Card and RCB Gold Debit Card, were specially designed and exclusively issued to premier RCB Elite and the RCB Gold members. Both of the PB RCB Mastercard Premium Debit Cards serve as the membership card for the RCB member and allow customers to earn VIP Points on their retail purchases. The VIP Points can be used to redeem items or AirMiles points through PB Redemption Catalogue.

Tan Sri Dato’ Sri Tay Ah Lek said, “To mark the occasion, Public Bank will be rewarding our RCB Elite and Gold Debit card holders with three (3) exclusive launch campaigns namely Bonus Activation Points of up to 10,000 VIPS Points, 5% Cash Back on Online and Overseas Transactions and Complimentary Access to Plaza Premium Lounge in Malaysia. These campaigns are aimed not only to reward RCB members, but also to complement their globetrotting lifestyle.”

Mr. Perry Ong, Country Manager, Malaysia and Brunei, Mastercard, said, “Mastercard is pleased to partner with Public Bank on the launch of PB RCB Mastercard Premier Debit Cards that will cater to the evolving needs of the country’s growing premium customer segment. These debit cards are better than cash and ATM cards, and will deliver exclusive experiences across dining, luxury accommodations, shopping and entertainment. The new debit cards are also great for travel as they will allow cardholders to make secure and convenient purchases overseas at merchant locations that accept Mastercard.”

Public Bank will continue to expand its RCB business throughout the country and focus in enhancing our RCB benefits and privileges to distinguish ourselves from our competitors by offering optimum banking and financial services to our premier customers.

To find out more about RCB Exclusive campaigns, customers are welcomed to visit any of our RCB Centres or contact the RCB Centres during normal working hours as follows:

Kuala Lumpur City Main Office	03-2176 6717
Bukit Damansara	03-2093 8318
SS2	03-7877 6000
Jalan Raja Chulan	03-2036 8999
Mont Kiara	03-6205 2202
Taman Melaka Raya	06-281 8822
Taman Johor Jaya	07-353 2288

From Left: Ms. Chan Chiew Peng, Senior General Manager of Retail Financial Services of Public Bank, Tan Sri Dato’ Sri Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank, Ms. Carene Khoo Geok Kheng, Director, Wealth Management & Transaction Banking of Public Bank.

From Left: Tan Sri Dato’ Sri Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank, Mr. Perry Ong, Country Manager, Malaysia and Brunei of Mastercard, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank, Ms. Chan Chiew Peng, Senior General Manager of Retail Financial Services of Public Bank.

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November 2018

8

Nov 2018

For Immediate Release

8 November 2018

Public Bank Launches All-In-One Digital Payment Platform

Public Bank Berhad (“Public Bank”) is partnering with REVENUE Group Berhad (“REVENUE” or the “Company,” Bloomberg: REVENUE:MK, Reuters: REVE.KL) to launch the all-in-one digital payment terminals.

This all-in-one digital payment terminal has been successfully piloted at selected merchant outlets of Public Bank and will be made available beginning 9 November 2018.

The first all-in-one digital payment terminal in Malaysia, developed by REVENUE, will simplify the payment acceptance process as it will enable the physical retail merchants to accept both card payments and mobile wallet payments in a single digital payment terminal thus providing convenience to them.

The all-in-one digital payment terminal, a fashionable and compact payment device, is powered by the Android operating platform. It comes with a high definition colour touch screen display and a super fast thermal printer that is neatly hidden below so as to maximise the screen usage for customer performing the electronic transactions.

The digital payment terminal has a wide range of connectivity, including 3G, 4G, WiFi and Bluetooth networks, enabling the physical retail merchants to process electronic transactions wirelessly and offer their customers a fast and convenient service experience. It also generates electronic transaction reports every business day to enhance operational efficiency.

Public Bank’s Managing Director and Chief Executive Officer Tan Sri Dato’ Sri Tay Ah Lek said, “The digital payment terminal is another ongoing initiative in Public Bank’s digital journey. As at end September 2018, Public Bank has more than 60,000 Electronic Data Capture (“EDC”) terminals nationwide. The Bank will continue with its strategy of increasing its merchant base and adding on more new acceptance services. This is also in-line with Bank Negara’s vision to promote cashless society among consumers. The new all-in-one digital payment terminal will enable the Bank to provide added benefits to new and existing merchants.”

Public Bank has a diverse and wide range of merchants spanning across a variety of industry sectors, including food and beverages, retail, fashion, electronics, telecommunications and petrol stations.

Attending the launch of this all-in-one digital payment terminals are Public Bank’s valued merchant partners such as AA Pharmacy, Alpro Plus Pharmacy, Hong Kong Sasa, L’occitane and Popular Bookstore.

Mr. Eddie Ng Chee Siong, the Managing Director and Group Chief Executive Officer of REVENUE said, “With the rapid development of payment technologies in Malaysia, the all-in-one digital payment terminal will enable its customers to manage a diverse range of payment more efficiently. As Malaysia is moving towards a cashless society, we are committed to develop innovative product and solution that will help our customers grow their businesses in a fast and evolving operating condition. The all-in-one digital payment terminal will help our customers to strengthen their payment and cash management capabilities.”

REVENUE’s all-in-one digital payment terminals can handle mobile Quick Response (“QR”) code payment services including Alipay, Boost, Touch ‘n Go, UnionPay QR and WeChat Pay, as well as card payments such as Visa, MasterCard, MyDebit, JCB and UnionPay, making payment management simpler and more efficient for physical retail merchants.

Through this digital payment terminal, physical retail merchants will be able to accept payment through multiple channel involving QR codes, near-field communications, chip cards and traditional magnetic stripe cards.

The milestone event was launched by Tan Sri Dato’ Sri Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank; Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank; Mr. Eddie Ng; Mr. Brian Ng Shih Chiow, Executive Director and Group Chief Operations Officer of REVENUE and Mr. Dino Ng Shih Fang, Executive Director and Group Chief Technology Officer of REVENUE.

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 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 REVENUE Group Berhad

Established in 2003, with 15 years of operating history in the electronic payments industry in Malaysia, REVENUE has been servicing different customers including banks, non-bank institutions, physical store merchants, online store merchants and e-money payment scheme.

REVENUE’s products and services are divided into three segments, namely deployment of EDC terminals, electronic transaction processing and solutions and services related to payments infrastructure.

REVENUE offers a wide range of technology-led multi-channel payment solutions to different customers through its flagship platform, revPAY that provides the connectivity between front-end to back-end solutions.

Through its revPAY platform, REVENUE offers a single platform which facilitates the acceptance of payment transactions across various payment channels from physical EDC terminals to virtual payments (via e-commerce and mobile commerce channels) to QR Payment, thereby providing cost effective solutions to its customers.

From Left: Ms. Chan Chiew Peng, Senior General Manager of Retail Financial Services of Public Bank, Dato’ Chang Kat Kiam, Deputy Chief Executive Officer of Public Bank, Tan Sri Dato’ Sri Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank, Mr. Eddie Ng, Managing Director and Group Chief Executive Officer of REVENUE, Mr. Brian Ng, Executive Director and Group Chief Operating Officer of REVENUE, Mr. Dino Ng, Executive Director and Group Chief Technology Officer of REVENUE during the launching of All-In-One Digital Payment Terminal.

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2

Nov 2018

For Immediate Release

2 November 2018

Comments On The Budget 2019

We congratulate the Pakatan Harapan Government for its maiden Budget 2019 with the theme ‘A Resurgent Malaysia, A Dynamic Economy, A Prosperous Society’. Despite the economic and fiscal challenges, Budget 2019 has been crafted with wholesome and inspiring approaches to enhance the well-being of the people as well as to promote the entrepreneurial culture among businesses for Malaysia to return to the status of “Asia Tiger”. Specifically, towards strengthening the fiscal management of the country, we applaud the unprecedented institutional reform initiatives proposed such as the Fiscal Responsibility Act, Government Procurement Act and zero-based budgeting.

In promoting housing for all, we welcome the various measure proposed in the Budget 2019. These measures would benefit the low-income group, first time home buyers, government servants, and also addressing the current overhang situation of residential properties. We note that the Government is exploring property crowdfunding under the peer-to-peer financing framework as an alternative source of financing for first time home buyers. In this respect, Public Bank will explore its possible role in participating in this innovative mechanism to continue to support first time home buyers.

The Government proposes wide-ranging initiatives to further harness and unleash the potential of our key economic sectors, which include embracing the digital economy, accelerating the adoption of Industry 4.0, strengthening small and medium enterprises, further developing the logistics and transportation sector, boosting tourism and creating value-add on commodities. We commend on these forward-looking measures and the focus on these sectors, which are drivers of future growth of our country.

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

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October 2018

25

Oct 2018

For Immediate Release

25 October 2018

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM5.31 BILLION FOR THE FIRST NINE MONTHS OF 2018

Chairman’s Review

For the first nine months of 2018, the Public Bank Group continued to make business progress despite the challenging operating environment and reported a pre-tax profit of RM5.31 billion, up 2.9% from the corresponding period in 2017. Net profit attributable to shareholders rose by 5.0% to RM4.19 billion from RM3.98 billion recorded in the previous corresponding period.

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “In the environment marked by rising uncertainties and persistent volatility, the Public Bank Group continued to uphold profitability growth, driven largely by its organic growth strategy in its loans and deposits businesses, coupled with its strong and stable asset quality and cost efficiency. These enabled the Group to continue delivering a leading set of financial performance indicators amongst its peers, with its net return on equity standing at 14.7%, cost-to-income ratio at 33.0% and gross impaired loans ratio at 0.5%.”

For the 3^rd quarter of 2018, the Group reported a net profit of RM1.38 billion. This reflects a growth of 1.6% from the operational net profit of RM1.36 billion achieved in the previous corresponding quarter, after excluding a one-off capital gain on investment of RM43 million.

Loans and Deposits Growth Remained Healthy

The Public Bank Group’s market leadership position in financing for the purchase of residential property, commercial property and passenger vehicles continued to drive the Group’s interest income. In the first nine months of 2018, total gross loans rose by an annualised rate of 4.4% to RM314.5 billion. Domestic loans grew at similar pace at an annualised rate of 4.4% to RM291.6 billion.

On the funding side, the Public Bank Group continued to uphold resilient growth in deposits. Total customer deposits grew at an annualised rate of 6.5% to RM334.9 billion, while domestic deposits rose by an annualised rate of 6.3% to RM307.0 billion.

Tan Sri Teh commented, “As a result of this performance, coupled with the Public Bank Group’s prudent liquidity management, the Group sustained a healthy gross loan to fund and equity ratio of 79.4% as at the end of September 2018.”

Contribution from Non-interest Income

In the first nine months of 2018, the Public Bank Group’s non-interest income was largely driven by the Group’s unit trust business, banking transactional income and foreign exchange related business.

Tan Sri Teh said, “Public Mutual, the Public Bank Group’s wholly-owned unit trust management subsidiary, remained the largest contributor to the Group’s non-interest income. For the first nine months of 2018, Public Mutual recorded a pre-tax profit of RM509 million, 5.3% higher as compared to the same period last year. As at the end of September 2018, with a total of 146 unit trust funds under management representing net asset value of RM83.4 billion, Public Mutual captured a significant retail market share of 40.6%, sustaining its top ranking in the domestic private unit trust industry.”

Continued Disciplined Cost Management

The Public Bank Group’s cost-to-income ratio continued to stand at an efficient level of 33.0% in the first nine months of 2018, as compared to the industry’s cost-to-income ratio of 44.8%.

Tan Sri Teh added, “Amid rising cost pressure, the Public Bank Group has been able to sustain the lowest cost-to-income ratio as compared to peers. This testifies to the Group’s ongoing effective measures in driving cost efficiency. This has also enabled greater capacity for the Group to pursue its growth strategy.”

Strength in Asset Quality Maintained

As at the end of September 2018, the Public Bank Group continued to sustain a low gross impaired loans ratio at 0.5%. Despite its strong asset quality, the Group maintained a high loan loss coverage of 110.2%. Including the regulatory reserves of RM2.0 billion, the loan loss coverage was at 235.8%.

Tan Sri Teh highlighted, “While the Public Bank Group is faced with intense competition in growing its financing portfolio and has always strived for sustained profitability growth, the Group has always emphasised on maintaining strength in its asset quality.”

Overseas Operations

For the first nine months of 2018, the Public Bank Group’s overseas operations contributed 9.5% of the Group’s overall pre-tax profit. Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc remained the largest contributors to overseas operations profit.

Tan Sri Teh added, “For the first nine months of 2018, excluding the effect of foreign exchange, the Group’s overseas operations achieved a pre-tax profit growth of 8.8%. In particular, Cambodian Public Bank achieved a commendable growth of 21.3% in pre-tax profit as compared to the same period last year.”

Healthy Capital Position

As at the end of September 2018, the Public Bank Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at 12.6%, 13.2% and 15.8% respectively.

Tan Sri Teh added, “Maintaining a healthy capital position will continue to be a strategic action for the Public Bank Group to support its pursuit of business growth strategy while meeting regulatory requirement.”

Group’s Prospects

The macro environment has been increasingly challenging in 2018, with the GDP growth for the first half of the year moderated to 4.9%. As uncertainties linger, economic growth is expected to moderate in the short term going forward.

However, Tan Sri Teh said, “The Malaysian economy will continue to remain on steady growth trajectory. The domestic financial system, as the backbone of the economy, has remained resilient to support growth.”

Tan Sri Teh concluded, “Taking cognisance of the challenges in the operating environment, the Public Bank Group will reinforce its prudent and effective balance sheet management to sustain profitability. The Group’s long term practice of cost efficiency, prudent risk management and agility to capture opportunities will continue to lead the Group for sustainable business growth.”

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

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17

Oct 2018

For Immediate Release

17 October 2018

Tan Sri Teh Hong Piow voted as the MAN OF THE YEAR by The BrandLaureate Hall Of Fame

Public Bank’s Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow has added another feather to his already illustrious cap with the latest award ‘The BrandLaureate Hall of Fame – Lifetime Achievement Award 2018 – MAN OF THE YEAR’ by the Asia Pacific Brands Foundation.

The award was presented by Dr. KKJohan, President, The Brand Laureate at a ceremony held in Singapore on 16 October 2018.

This latest personal-to-holder award is in recognition of Tan Sri Teh’s conviction, determination, passion and resilience in building the PB Brand to a coveted position.

Dr. KKJohan in his citation speech said, “As the Founder and Chairman of Public Bank, Tan Sri Teh sets forth his vision with much passion, and commitment. With his distinctive and dynamic leadership, Tan Sri Teh has steered Public Bank and its portfolio of brands to a desired position as a financial conglomerate.

“Your milestones and achievements are a result of your conviction, determination, passion and resilience to build the brand. You have set new trends and best practices, left your footprint in the nation and impacted the lives of many with your leadership and entrepreneurial spirit. You are truly a source of inspiration to many aspiring ‘Brandpreneurs’ and the pride of your country,” he said.

Tan Sri Teh in acknowledging the award said, “To be an entrepreneur is tough. But to be a Brandpreneur – that requires one to have a strong belief in the power of one’s own brand and to inject into it a healthy dose of entrepreneurial spirit to win the hearts, minds and wallets of customers.”

“For an organization to be a brand leader, it is not only about the way we think our business. It is also about the way its people act and stay true to its core values and principles. Oprah Winfrey, once said, “Let excellence be your brand. When you are excellent, you become unforgettable.”

“One may say that I am of the ‘old school’ when it comes to how we conduct ourselves. However, I believe core values like integrity, hard work, commitment and a sense of professionalism bespoke one’s personal brand”, added Tan Sri Teh.

Tan Sri Teh dedicated this award to “all the people who have worked alongside with me, be it past or present. They are the unsung heroes who have helped me to build a successful bank. It is mentioned that ideas can be stolen but no one can steal execution and passion and that is the hallmark of Public Bank’s success.”

At the same ceremony, Public Bank was also the recipient of The BrandLaureate BRAND OF THE YEAR Award 2018 for having fulfilled the selection criterion of Brand Strategy, Brand Culture, Brand Innovation, Brand Loyalty, Brand Communication and Brand Leadership. It is an affirmation of the PB Brand supremacy and excellence.

With these two awards received, one for the Bank and one a personal-to-holder to the Founder and Chairman, Public Bank will continue to strive for wider trust from the public to meet the expectations of the stakeholders.

As at todate, Public Bank has amassed more than 580 corporate awards of excellence and distinction, while Tan Sri Teh has accumulated 40 personal-to-holder awards of lifetime achievements and exemplary leadership.

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

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August 2018

15

Aug 2018

For Immediate Release

15 August 2018

PUBLIC BANK GROUP ACHIEVED PRE-TAX PROFIT OF RM3.55 BILLION FOR THE FIRST HALF OF 2018 AND DECLARED 32 SEN FIRST INTERIM DIVIDEND

Chairman’s Review

For the first half year ended 30 June 2018, the Public Bank Group recorded pre-tax profit of RM3.55 billion, a growth of 5.5% from the corresponding period in 2017. Net profit attributable to shareholders increased by 8.6% to RM2.80 billion.

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow said, “The Group was able to sustain good business momentum in the first half of 2018. The higher profit for the period was largely driven by growth in its loan and deposit business, with further impetus from a 4.9% growth in non-interest income.”

Tan Sri Teh added, “Sustained business strength continued to place the Group in a strong competitive position, with its net return on equity standing at 15.0%. Similarly, the Group’s cost-to-income ratio of 33.1% and gross impaired loans ratio of 0.5% remained the best in the domestic banking industry.”

As the Group continued to deliver favourable performance, Tan Sri Teh is pleased to announce, “The Board of Directors has declared a first interim dividend of 32 sen per share, which will result in a total dividend payout of RM1.24 billion. The first interim dividend will be paid on 19 September 2018 based on the dividend entitlement date of 7 September 2018.”

Healthy Growth in Loans and Deposits

In the first half of 2018, the Public Bank Group’s total gross loans rose by an annualised rate of 4.1% to RM310.7 billion. On the domestic front, total loans grew at an annualised rate of 4.3% to RM288.3 billion. The Group has continued to sustain its leading position in the financing business focusing on residential properties and commercial lending to small and medium enterprises in the domestic banking industry.

On deposit taking, the Public Bank Group’s total customer deposits grew at an annualised rate 6.7%, led by the resilient growth in domestic deposits which increased at an annualised rate of 7.4%.

Tan Sri Teh said, “The Group exercises prudent liquidity management and always ensures the stability of its funding sources. As at the end of June 2018, the Group’s gross loan to fund and equity ratio stood at a healthy level of 79.4%.”

Sustained Growth in Non-interest Income

The non-interest income segment has remained a main source of revenue to the Public Bank Group. In the first half of 2018, non-interest income increased by 4.9%, largely contributed by the Group’s unit trust business as well as stable growth in its banking transactional fee income.

Tan Sri Teh added, “In the first half of 2018, Public Mutual, the Public Bank Group’s wholly-owned unit trust management subsidiary, continued to deliver favourable result, with its pre-tax profit growing by 9.0% compared to the corresponding period in 2017. As at end-June 2018, Public Mutual managed a total of 144 unit trust funds, with a total net asset value of RM80.2 billion. Public Mutual’s market presence remained significant, with its market share standing strong at 40.3% in the domestic private unit trust industry.”

Prudent Cost Management

The Public Bank Group’s cost-to-income ratio remained stable at 33.1% in the first half of 2018, staying well below the banking industry’s average cost-to-income ratio of 44.8%. This reflects the Group’s unwavering strong commitment to high operational efficiency.

Tan Sri Teh highlighted, “High efficiency and productivity have long been a cornerstone of the Group’s competitive strength. The Group will remain steadfast in sustaining strong cost discipline, while proactively pursuing growth along its business strategy.”

Upholding Strong Asset Quality

Tan Sri Teh added, “The Public Bank Group continued to sustain its strong asset quality with its gross impaired loans ratio staying low and stable at 0.5%, which remained the best when compared to the Malaysian banking industry’s gross impaired loans ratio of 1.6%.”

Further, the Group’s loan loss coverage stood high at 117.3%. Including the regulatory reserves of RM2.0 billion, the loan loss coverage was at 247.9%.

Overseas Operations

For the first half of 2018, overseas operations contributed 8.4% to the Public Bank Group’s pre-tax profit, led by businesses in Public Financial Holdings Limited Group in Hong Kong and Cambodia Public Bank Plc.

Tan Sri Teh said, “Over the years, the Group has been actively growing and expanding its business in the region through diversifying and enhancing its banking products and services and expansion of branches, particularly in Indo-China. As at the end of June 2018, the Group has built an extensive network of 82 branches in Hong Kong and the People’s Republic of China, and 48 branches in Indo-China. This includes the set-up of 6 new branches in Vietnam in 2017 with another 5 more branches to be opened in 2018.”

Healthy Capital Position

As at the end of June 2018, the Public Bank Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at 12.7%, 13.4% and 16.3% respectively.

Tan Sri Teh added, “The Group has been proactively managing its capital position and will ensure a strong level of capital is maintained at all times to support the Group’s continued business growth.”

Group’s Prospects

Global growth is expected to continue although there remain risks emanating from trade protectionism and policy changes in the advanced economies. For the Malaysian economy, fundamentals remain sound despite concerns on the elevated public debt level. Domestic demand has remained the anchor driving economic growth supported by stable labour market and ongoing Government measures. The Malaysian banking sector will stay as a strong support to the domestic economic growth.

Tan Sri Teh concluded, “The Public Bank Group will continue to ride on the growing economy to strengthen its banking business along its organic growth strategy. The Group’s resilient fundamentals, consistent financial performance, agility to market changes and strong customer service culture will continue to be the essential qualities in driving the sustainability of the Group’s business, for 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 2018

2

May 2018

For Immediate Release

2 May 2018

Public Bank Group Achieved 12.6% Net Profit Growth In The First Quarter of 2018

Chairman’s Review

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow announced today that, “The Public Bank Group has set a positive start for the year and achieved 12.6% growth in its net profit attributable to shareholders to RM1.41 billion for the first quarter of 2018, as compared to RM1.25 billion achieved in the previous corresponding period. Pre-tax profit grew by 10.0% to RM1.79 billion over the same period.”

The Public Bank Group’s profit growth for the first quarter of 2018 continued to be underpinned by the sustained growth of 4.0% in the Group’s net interest income, complemented by a strong growth of 15.6% in non-interest income.

Tan Sri Teh added, “This resulted in a continued favourable set of financial performance indicators, as reflected in the Group’s net return on equity of 15.2%, gross impaired loans ratio of 0.5%, and cost-to-income ratio of 32.6%, which have remained the best in the domestic banking industry.”

Sustaining Momentum in Loans and Deposits

The Public Bank Group’s core revenue continued to be driven by its healthy growth in loans and deposits business. In the first quarter of 2018, total gross loans of the Group increased at an annualised rate of 3.0%, with domestic loans growing faster at an annualised rate of 5.0%. The Group continued to capture major domestic market share in the financing of residential properties and commercial lending to small and medium enterprises.

In the deposit-taking business, the Group achieved an annualised 8.3% growth in total customer deposits for the first quarter of 2018, while domestic deposits grew at an annualised rate of 10.2%.

Tan Sri Teh commented that, “Competition in the financing and deposit market had remained intense. However, the Public Bank Group was able to sustain a favourable market position, which continued to generate revenue contributing to the Group’s profit growth.”

“As reflected by its gross loan to fund and equity ratio of 79.9%, the Group’s financing growth has remained well supported by its healthy funding structure. Further, the Group has remained vigilant and placed great emphasis on maintaining a healthy liquidity position, in the face of the challenging operating environment and stringent liquidity regulatory requirement.” said Tan Sri Teh.

Sustaining strong momentum in Non-interest Income

The Public Bank Group continued to achieve good performance in growing its non-interest income, with a strong growth of 15.6% in the first quarter of 2018 compared to the corresponding period a year ago. This was mainly attributed to the commendable growth of income in the Group’s unit trust business and foreign exchange business, as well as higher investment income coupled with a healthy growth of banking transactional fee income.

Tan Sri Teh said, “In the first quarter of 2018, Public Mutual, the Public Bank Group’s wholly-owned unit trust management subsidiary, recorded an impressive pre-tax profit growth of 16.6%. The favourable performance was underpinned by its strong market position, supported by a total number of 142 unit trust funds under its management, with a total net asset value of RM81.9 billion, capturing 41.1% of retail market share in the domestic private unit trust industry.”

Prudent Cost Management

The Public Bank Group’s ongoing initiatives on enhancing productivity and prudent cost management continued to deliver efficient cost optimisation, with the cost-to-income ratio sustained at 32.6% in the first quarter of 2018. The Group’s cost-to-income ratio remained well below banking industry’s average cost-to-income ratio of 44.8%.

Tan Sri Teh highlighted that, “In the face of rising prices and cost of compliance, increasing expenses are inevitable. However, the Public Bank Group’s long-embedded prudent cost management has built buffers and strong foundation to meet the challenges, and enabled the Group to sustain a track record of efficiency and productivity.”

Upholding Strong Asset Quality

The Public Bank Group recorded a stable gross impaired loans ratio of 0.5% as at the end of March 2018. As compared to the Malaysian banking industry’s gross impaired loans ratio of 1.6%, the Group continued to achieve the best asset quality among domestic peers.

In 2018, the Public Bank Group will continue to emphasise on sustaining its superior asset quality. Tan Sri Teh highlighted, “Resilient asset quality has long formed the cornerstone of the Group’s robust fundamentals. Prudent credit risk management has provided stakeholders with long term confidence on the Group’s business sustainability.”

With effect from 1 January 2018, the Group has adopted the Malaysian Financial Reporting Standard 9 (“MFRS 9”) which is a more forward-looking based provisioning. Due to the strong asset quality, the Group’s credit cost remained low at 0.09% in the first quarter of 2018. As at the end of March 2018, the Group also continued to maintain a healthy loan loss coverage ratio of 125.2%. Including additional regulatory reserves set aside of RM2.0 billion, the Group’s loan loss coverage ratio would be 261.0%.

Overseas Operations

The Public Bank Group’s overseas operations continued to contribute to the Group’s profits.

Tan Sri Teh said, “For the first quarter of 2018, overseas operations contributed 8.1% of the Public Bank Group’s pre-tax profit, with Public Financial Holdings Limited Group in Hong Kong and Cambodia Public Bank Plc being the main contributors to the Group’s overseas business profits.”

Healthy Capital Position

The Public Bank Group’s capital position remained stable. The Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio were at 12.2%, 12.8% and 15.8% respectively as at the end of March 2018.

Further, the implementation of MFRS 9 on 1 January 2018 did not result in any adverse impact to the capital position of the Group due to the Group’s large regulatory reserves that has been set aside.

Tan Sri Teh reiterated, “Strong balance sheet and capital position have always been pillars of public confidence. The Public Bank Group’s capital position has remained healthy and well above regulatory requirement. The Group will continue to exercise prudent capital management to support its growth strategies, while maximising its long term shareholder value.”

Group’s Prospect

The Malaysian economy had achieved an impressive GDP growth of 5.9% in 2017. The favourable growth is expected to continue in 2018, given the prospects of better macroeconomic conditions on the global and domestic front. The positive operating environment will bode well for the domestic banking industry with continued growth opportunities.

Tan Sri Teh added, “The Malaysian banking sector has long benefited from the stable economic conditions and prudent regulatory environment over the years. Tapping on this stable and conducive environment, the Public Bank Group has been able to stay resilient to serve its customers.”

“In 2018, with domestic demand expected to remain favourable, the resilient growth in the domestic economy will continue to be a strong support to the Group’s banking business. The Group maintains a positive outlook for its core business focusing on financing of residential properties and commercial lending to small and medium enterprises. The Group will stay agile to the advancement in financial technology, and will continue to enhance its digital capability in response to the needs of the market. Further, the Group will continue to strengthen its banking infrastructure, product innovation and service quality as the strategic enablers to drive further business growth.” concluded Tan Sri Teh.

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

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April 2018

23

Apr 2018

For Immediate Release

23 April 2018

Public Bank’s 52^nd Annual General Meeting Held On 23 April 2018

In conjunction with Public Bank’s 52^nd Annual General Meeting held on 23 April 2018, 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 2017.

Performance Review

Tan Sri Teh said, “The Public Bank Group achieved yet another profit milestone in 2017 with profit before tax of RM7.12 billion, crossing the RM7 billion mark for the first time. This represents a 8.6% growth as compared to RM6.55 billion in 2016. Net profit attributable to shareholders grew by 5.1% to RM5.47 billion in 2017. As a result, earnings per share increased to 141.7 sen in 2017.”

Tan Sri Teh added, “The favourable performance of the Public Bank Group in 2017 was attributed to the healthy loans and deposits growth, coupled with the strong asset quality and sustained cost efficiency. As a result, the Group maintained its leading position amongst domestic commercial banking groups in Malaysia with the highest net return on equity of 15.8%, most efficient cost to income ratio of 31.9% and best asset quality with the lowest gross impaired loans ratio of 0.5%.”

Tan Sri Teh further added, “In view of the Group’s favourable performance in 2017, a second interim dividend of 34 sen was paid on 23 March 2018. Together with the first interim dividend of 27 sen paid in August 2017, the shareholders would have received a total dividend of 61 sen per share for 2017.” The total dividends paid for 2017 was RM2.36 billion, representing a payout of 43.1% of the Group’s net profit for 2017.

Steady Growth in Loans and Customer Deposits

The Public Bank Group’s loans growth was mainly attributed to the lending growth in its retail consumer and commercial banking segment, comprising financing for the purchase of residential properties and extension of credits to small and medium enterprises.

Tan Sri Teh highlighted that, “The Public Bank Group’s loans and deposits increased by 3.6% and 3.0% respectively in 2017. Domestic loans increased at a faster pace of 4.6%, higher than the domestic industry’s growth rate of 4.1%. Meanwhile, domestic customer deposits expanded by 3.6%.”

Tan Sri Teh further added, “Public Bank remained the market leader in the financing of residential properties, commercial properties and passenger vehicles with market shares of 19.6%, 35.5% and 28.5% respectively. In terms of deposits, the Group’s strong retail franchise and large domestic depositor base of over six million customers underpin the Group’s customer deposits growth.”

With the steady inflows of customer deposits, the Group remained well funded with a healthy gross loans to fund and equity ratio of 80.7% as at the end of 2017.

Sustained Strong Asset Quality

Tan Sri Teh said, “The Public Bank Group continues to rank No. 1 in terms of asset quality amongst Malaysian banking groups with the lowest gross impaired loans ratio of 0.5% as at the end of 2017, significantly better than the banking industry’s gross impaired loans ratio of 1.5%.”

As at the end of 2017, the Group's loan loss coverage ratio stood at 95.5% which was higher and more prudent than the banking industry’s loan loss coverage ratio of 82.9%. With the inclusion of regulatory reserves, the loan loss coverage ratio of the Group would be significantly higher at 256.5%.

International Operations

The Public Bank Group’s overseas operations posted a 10.8% growth in pre-tax profit to RM687.8 million in 2017, contributing 9.7% to the Group’s pre-tax profit in 2017. The Group’s overseas operations remained focused in the Hong Kong and Indo-China market, where the Group has established its footprint for more than 20 years.

Since the transformation of Public Bank Vietnam Limited (“PBVN”) from a joint venture bank to a 100% foreign-owned bank in Vietnam in April 2016, the Group has further expanded its business in Vietnam by opening six new branches in 2017. To date, PBVN has 13 branches and is planning to open more branches in 2018.

Higher Contribution from Non-Interest Income

Non-interest income remained a significant source of revenue complementing the Group’s net interest income. In 2017, the Group’s non-interest income increased at a commendable rate of 11.3%. This was mainly contributed by higher income from its unit trust businesses, higher investment income as well as increased contribution from its stock broking and bancassurance business. Tan Sri Teh commented, “The Group will continue to place emphasis on growing its fee-based revenue through product innovation and cross-selling initiatives.”

Tan Sri Teh said, “The Group’s unit trust management business undertaken by its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the non-interest income growth of the Group. Public Mutual reported an impressive pre-tax profit growth of 15.4% to RM660.9 million in 2017 and remained the market leader with an overall retail market share of 40.9% in the private unit trust business. In 2017, Public Mutual’s total assets under management increased by 15.9% to RM81.44 billion with 141 funds under its management as at the end of 2017.”

Healthy Capital Position

The Public Bank Group’s capital position remained healthy with its common equity Tier I capital ratio, Tier I capital ratio and total capital ratio standing at 12.2%, 13.0% and 16.0% respectively as at the end of 2017, after deducting second interim dividend.

Tan Sri Teh commented that, “Public Bank will continue to proactively manage its capital to ensure that the Group’s capital position remains healthy to support the Group’s business growth strategies whilst optimising its shareholders’ return.”

Superior Returns to Shareholders

The Public Bank Group is committed to deliver consistent returns to its shareholders and enhancing the long term value of its shareholders’ investment.

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 RM3.5 million as at today. In addition, he would have received a total gross dividend of RM1.3 million. This translates into a total value of RM4.8 million, representing a remarkable compounded annual rate of return of 19% for each of the 50 years since 1967.”

Recognition of Banking Excellence

Over the years, Public Bank has won more than 500 awards in recognition of its banking excellence under the astute leadership of its Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow, as well as its strong corporate governance. These awards were conferred by reputable domestic and international publications as well as independent organisations. In 2017 alone, Public Bank garnered a total of 35 awards. Some of the notable awards received include:

Best Bank in Malaysia 2017 by Global Finance
Best Bank in Malaysia 2017 by Alpha Southeast Asia
Best Domestic Bank in Malaysia 2017 by The Asset
Domestic Retail Bank of the Year in Malaysia 2017 by Asian Banking & Finance
The Strongest Bank by Balance Sheet in Malaysia 2017 by The Asian Banker
Best Bank for SMEs Award 2017 by Asiamoney
7^th Asian Excellence Recognition Awards 2017 for Best Investor Relations Company for Malaysia and Best Environmental Responsibility for Malaysia by Corporate Governance Asia
The Asset Platinum Award 2017 for Excellence in Environmental, Social and Corporate Governance by The Asset
The BrandLaureate Best Performing Public Listed Company - Banking Award 2016-2017 by Asia Pacific Brands Foundation
The BrandLaureate Industry Champion Brand Icon Leadership Award for Banking 2017 by Asia Pacific Brands Foundation
The Edge Billion Ringgit Club Corporate Awards 2017: Gold Awards for Highest Return on Equity Over Three Years and Highest Growth in Profit After Tax Over Three Years in Finance Sector with RM10 Billion and Above Market Capitalisation by The Edge Billion Ringgit Club
The Edge Billion Ringgit Club Corporate Awards 2017: Silver Awards for Highest Return on Equity Over Three Years and Highest Growth in Profit After Tax Over Three Years for Super Big Cap Companies Above 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, “The Group is confident that its strong fundamentals will enable it to stay resilient and flexible as well as seize opportunities when they arise. Against the backdrop of an increasingly more challenging and complex operating environment, the Group’s key priorities are to accelerate business and digital innovation as well as pursue operational efficiency. The Group’s business model building on its organic growth strategy in the retail banking business, coupled with its prudent credit policies as well as strong risk management practices, will remain the Group’s key strengths to sustain continued business and profitability growth.”

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

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19

Apr 2018

For Immediate Release

19 April 2018

Alert on a Scam

It has come to Public Bank’s attention of a website claiming that Public Bank has launched an automated bitcoin trading platform purportedly called "PUBLIC COIN". The website claims that investors can earn tremendous wealth by placing an initial deposit into the platform.

Please be informed that neither Public Bank nor its subsidiaries offer such a product. Public Bank is not the owner of "PUBLIC COIN" and is not responsible for the said product. The website and the information about "PUBLIC COIN" do not originate from Public Bank.

Public Bank would like to alert members of the public on this scam. Information of Public Bank’s products and services are available on its official website, https://www.pbebank.com.

Public Bank takes a serious view of any false statements or scams using the Bank’s name, logo or trademark without authority and reserves the right to seek legal recourse against any attempt to mislead the public and / or tarnish the Bank's name and reputation.

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12

Apr 2018

For Immediate Release

12 April 2018

Public Bank Clinched 5 Awards At The Malaysian e-Payments Excellence Awards 2018

Public Bank Berhad (PBB) was once again an outstanding performer at the Malaysian e-Payments Excellence Awards (MEEA) held in Kuala Lumpur on 11 April 2018 after securing 5 awards for its outstanding contribution to the growth of e-payments in the country.

The accolades awarded to PBB were: Best IBG Bank, Outstanding Contribution to FPX, Best MyDebit Bank, My Debit Top Acquirer, Outstanding Contribution to MyDebit.

The MEEA is organized annually by the Payments Network System (M) Sdn Bhd, a wholly-owned subsidiary of BNM to recognize the contributions of the financial industry, the business community and government agencies in accelerating the country’s e-payment agenda.

This is the second year in a row, PBB was awarded as the Best MyDebit Bank as well as retaining the Outstanding Contribution awards for both FPX and MyDebit.

The awards were given out by Bank Negara Malaysia (BNM) Governor, Tan Sri Muhammad Ibrahim. On hand to receive the awards on behalf of PBB was its Managing Director, 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 with stable infrastructure to provide the best support to e-Payments under a reliable, safe and secured environment.

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 and has put in place a well defined cyber security strategy to protect customers against cybercrimes.

To further provide a robust and scalable solution to customers, PBB has in March 2018, launched a new version of the Cash Management Solution known as PB enterprise that provides business enterprises a robust platform to manage their financials more effectively and efficiently.

In line with Bank Negara Malaysia’s directive, PBB has organized extensive e-Payments forums nationwide to promote the Bank’s comprehensive Cash Management and e-banking services in an effort to migrate more businesses onto the e-Payments platform.

Caption : From left Public Bank’s Chief Executive Officer/Managing Director, Tan Sri Dato’ Sri Tay Ah Lek and Tan Sri Muhammad bin Ibrahim, Governor, Bank Negara Malaysia and Mr. Peter Schiesser, Managing Director of PayNet at the Malaysian e-Payments Excellence Awards.

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March 2018

13

Mar 2018

For Immediate Release

13 March 2018

Tan Sri Teh Hong Piow Declared As ‘The Greatest Malaysian Banker Of All Time’

Public Bank’s Founder and Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow has been awarded the ‘The Greatest Malaysian Banker of All Time’ by the Asia Pacific Brands Foundation on 10 March 2018, during the Public Bank Management Seminar Dinner held at the Mines International Exhibition and Convention Centre.

Dr. KK Johan, President of the BrandLaureate, presented the award to Tan Sri Teh in the presence of more than 4,000 staff of the Public Bank Group.

Dr. KK Johan in his citation speech said, “For the past 50 years, there is no other banker extraordinaire that has steadfastly grown the bank to record breaking feats, positive growth year after year and for 2017, achieved a net profit to RM5.47 billion reached through organic growth and brilliant strategic moves”.

“The brilliant mind of Tan Sri Teh Hong Piow has no match and his astounding knowledge of the banking industry puts him ahead of the competition. Without Tan Sri Teh Hong Piow and Public Bank, I daresay that Malaysia’s banking industry and the country’s economy would not be what it is today. He defines banking leadership and with his principles and philosophy has set standards of good banking practices, which is emulated and respected by his peers”, added Dr. KK Johan.

Dr. KK Johan continued, “The APBF has specially crafted a trophy to present to you tonight – a trophy that symbolises your weight in the industry as a banking giant and a trophy that is very elaborate, specially crafted and designed like no other trophies designed before. A masterpiece only meant for the Great Master Banker. No one has received it before and is worthy of it except the honourable Founder Chairman of Public Bank, Tan Sri Dato’ Sri Teh Hong Piow. This award is meant only for the greatest and the best!”.

In applauding Tan Sri Chairman’s latest award, Public Bank Managing Director Tan Sri Dato’ Sri Tay Ah Lek said, “On behalf of the Board of Directors, Management and staff of Public Bank Group, I wish to express our heartiest and heartfelt congratulations to Tan Sri Teh Hong Piow for being bestowed this BrandLaureate ‘The Greatest Malaysian Banker of All Time’ Award tonight”.

He said, “Tan Sri Chairman is the mark of an ideal leader whose hopes and dreams for Public Bank knows no bounds. The exemplary leadership of Tan Sri Chairman as ‘The Greatest Malaysian Banker of All Time’ has not only propelled Public Bank to the forefront of the Malaysian financial landscape but has also gained international respect and acclaim”.

“Tan Sri Chairman has contextual intelligence, a profound ability to understand the spirit of the times and harness the opportunities they present to create a successful organisation. These are the attributes that have enabled Public Bank to make stellar returns and create significant value for stakeholders over the years”.

According to Tan Sri Tay, “Tan Sri Chairman’s compassion towards his staff and excellence in all his endeavours, call immediately for our total respect and warmest love. Tan Sri Chairman, you are an inspiration not only to your Public Bank family, but also to generations of bankers and a continuing source of enlightenment”.

With this latest award, Tan Sri Teh has received a total of 45 personal to holder awards in recognition of his exemplary commitment to excellence and lifetime dedication to the banking industry.

Dr. KK Johan presenting the award trophy to Tan Sri Dato' Sri Dr. Teh Hong Piow.

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February 2018

22

Feb 2018

For Immediate Release

22 February 2018

PUBLIC BANK GROUP ACHIEVED RECORD PRE-TAX PROFIT OF RM7.12 BILLION FOR 2017 AND DECLARED SECOND INTERIM DIVIDEND OF 34 SEN

Chairman’s Review

The Founder and Chairman of Public Bank, Tan Sri Dato’ Sri Dr. Teh Hong Piow announced today that, “The Public Bank Group recorded yet another milestone financial results in 2017 with pre-tax profit of RM7.12 billion, surpassing the RM7.0 billion mark for the first time. This represents 8.6% growth from the pre-tax profit of RM6.55 billion achieved a year ago. Net profit attributable to shareholders grew by 5.1% to RM5.47 billion, translating to a net return on equity of 15.8% for 2017.”

The Malaysian economy grew stronger than expected in 2017. The continued expansion in domestic demand, coupled with the improvement in external environment continued to provide growth opportunities for the banking industry. Against the macro backdrop, the Public Bank Group continued to progress and deliver a favourable set of financial results supported by a commendable 7.9% total net income growth. This was attributed to steady loan growth coupled with continuous drive on fee-based revenue and effective cost management.

Tan Sri Teh further added that, “With the resilient performance in 2017, the Public Bank Group continued to achieve a high net return on equity of 15.8% whilst maintaining its low gross impaired loan ratio of 0.5% and an efficient cost-to-income ratio of 31.9%. The results are a validation of the Group’s effective organic growth strategies and sustainable business model. We have benefited from our disciplined execution of our growth strategies whilst preserving prudent risk management practices to ensure sustainable and stable returns.”

In view of the Public Bank Group’s favourable performance in 2017, Tan Sri Teh announced that, “The Board of Directors is pleased to declare a second interim dividend of 34 sen, taking full year dividend for 2017 to 61 sen.” The total dividend paid and payable for 2017 amounted to RM2.36 billion and represents a total payout of 43.1% of the Group’s net profit for 2017.

Steady Growth in Loans and Deposits

For the financial year ended 31 December 2017, the Public Bank Group sustained a steady loan growth momentum at a rate of 3.6%. Domestic lending business grew by 4.6% over the same period, outpacing the domestic banking industry’s loan growth rate of 4.1%.

The Public Bank Group’s loan growth was mainly attributed to the lending growth in its retail consumer and commercial banking segment, comprising financing for the purchase of residential properties and extension of credits to small and medium enterprises.

In tandem with the steady loan growth, the Group’s total customer deposits grew by 3.0%, mainly attributed to the steady inflow of core deposit comprising fixed deposits, low-cost savings and current accounts, which grew by 4.5%.

“The Group’s robust funding position was mainly supported by its strong retail franchise and large domestic depositor base of over six million customers who continue to place their trust and confidence in the Group in safeguarding their funds,” remarked Tan Sri Teh.

With the steady inflow of customer deposits, the Public Bank Group remains well funded with a healthy gross loan to fund and equity ratio of 80.7% as at the end of 2017.

Sustaining Growth in Fee-Based Revenue

Tan Sri Teh highlighted that, “Growing fee-based revenue remains as a key strategic focus of the Public Bank Group.” Arising from the Group’s initiative to drive growth of its fee-based revenue in order to sustain better return for its shareholders, the Group’s non-interest income increased by 11.3% in 2017 as compared to 2016. This was mainly contributed by higher income from its unit trust business, higher investment income as well as increased contribution from its stockbroking and bancassurance business.

The Public Bank Group’s unit trust management business undertaken by its wholly-owned subsidiary, Public Mutual Berhad (“Public Mutual”), continued to contribute positively to the non-interest income growth of the Group. For the year 2017, fee income from unit trust business made up 39% of the Group’s total non-interest income. As at the end of 2017, Public Mutual manages 141 funds with a total net asset value of RM81.4 billion and has remained as the market leader with an overall retail market share of 40.9% in the private unit trust business. For the financial year ended 31 December 2017, Public Mutual reported an impressive 15.4% growth in pre-tax profit to RM661 million.

Sustained High Productivity and Cost Efficiency

The Public Bank Group continued to be the most efficient banking group in Malaysia with its best cost-to-income ratio of 31.9% as compared to the banking industry’s average cost-to-income ratio of 45.8%.

Tan Sri Teh added that, “The Group is committed to continue with prudent cost discipline at all times and to consistently pursue high productivity and cost efficiency in all aspects of its operations, prioritising the investment and deployment of resources and technology to where they are most effective without compromising on compliance and service quality.”

Superior Asset Quality

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

As at the end of 2017, the Public Bank Group’s impaired loan ratio remained low at 0.5%, significantly lower than the industry ratio of 1.5%. The Group’s loan loss coverage ratio of 95.5% as at the end of 2017 continued to be better as compared to the Malaysian banking industry’s ratio of 82.9%. Including the RM2.4 billion regulatory reserves set aside, the Group’s loan loss coverage ratio would be 256.5%, which provides a strong buffer for the Group’s adoption of MFRS 9 effective 1 January 2018.

Tan Sri Teh further added, “To continue achieving strong asset quality while maintaining steady growth in its lending business, the Group will continue with its present prudent approach and practices in managing the quality of its loan portfolio right from origination to the recovery of impaired loans.”

Overseas Operations

The pre-tax profit of the Public Bank Group’s overseas operations grew by 10.8% to RM688 million in 2017, contributing 9.7% to the Group’s overall pre-tax profit for 2017.

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, generating pre-tax profit of HKD616 million and USD59 million respectively during the year.

In addition, Vietnam will continue to be on the Public Bank Group’s overseas expansion plan. With the 100% foreign-owned bank licence obtained in 2016, the Group has further expanded its business through the opening of 6 new branches in 2017. As at to date, it has 13 branches and is planning to open more branches in 2018.

Tan Sri Teh emphasised 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 continued to maintain a healthy level of capital with its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 12.2%, 13.0% and 16.0% respectively as at the end of 2017, after deducting the second interim dividend.

Tan Sri Teh reiterated that, “Public Bank will continue to be proactive in its capital management in order to ensure that the Group’s capital position remains healthy at all times in support of the Group’s business growth strategies whilst optimising its shareholders’ return.”

Group’s Prospect

“The banking sector outlook is expected to be generally stable in 2018. The global economic recovery is strengthening and the Malaysian economic growth is expected to remain strong in 2018. This sets a stable outlook for continued growth opportunities for the Malaysian banking sector.

While acknowledging the improved prospects in the overall economy, the Public Bank Group remains cautious on the potential downside pressure emanating from the continued low consumer sentiments and uncertainties lingering in the global economic environment.

However, the Public Bank Group is confident that its solid business model building on organic growth strategy in the core retail banking and financing business, coupled with its prudent credit policies, as well as strong risk management practices will continue to be the key strengths for the Group to strive for higher growth and sustainable profitability. Facing the highly competitive banking landscape, the Group’s key priorities are to accelerate business innovation and pursue operational efficiency in order to deliver the Group’s commitment to excellence to all its stakeholders,” concluded Tan Sri Teh.

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

* * * * * * *

January 2018

2

Jan 2018

For Immediate Release

2 January 2017

Public Bank Offers 24K Gold-Plated Gifts “PB Golden Fortune Brings You Prosperity with Exquisite Gift”

Public Bank is pleased to announce the launch of the ‘PB Golden Fortune Campaign’ in conjunction with the forthcoming Chinese New Year Celebration with golden reward. The promotion period of this Campaign is from 1 January 2018 to 31 March 2018 and it is open to all new and existing Public Bank customers.

There are two exclusively designed enchanting 24K gold-plated auspicious gifts up for grabs this year which consist of a plus size gift namely “Scroll of the Golden Koi” and a standard size gift “Auspicious Double Crane”. These gifts are limited edition and each represents a magnificent piece of gold craft that symbolises longevity, prosperity and success. The gifts are limited and only available on first-come-first-serve basis, while stock lasts.

There are two plans i.e. PB Golden Plan and PB Fortune Plan for customers’ selection. Customers can purchase Unit Trust (UT) or PB Smart Link (PBSL) or Gold Investment Account (GIA) bundled with deposit in PLUS or Basic Current / Savings Accounts in order to get the exclusive gift(s). PB Golden Plan offers one “Auspicious Double Crane” and PB Fortune Plan offers one “Scroll of the Golden Koi”.

This campaign is designed for customers who are looking for diversified investment products in achieving their financial goals. Customers can choose from a vast selection of Unit Trust funds that cater to their risk appetites in order to achieve their financial goals through proper financial planning. Customer can also invest in PB Smart Link which is an investment-linked insurance plan that provides insurance coverage. In addition, they can choose to invest in gold without having to keep physical gold via the Gold Investment Account which has remained a popular investment tool to safeguard wealth.

Just select the PB Golden Plan or PB Fortune Plan of your choice and be rewarded with the limited edition 24K gold-plated gift(s). Collect both designs by signing up for multiple plans!

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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Media Release