Statement by the Public Bank Group

December 2020

9

Dec 2020

FOR IMMEDIATE RELEASE

9 December 2020

Statement by the Public Bank Group

It has come to the Public Bank Group’s attention of a news article pertaining to an agreement between Datuk Phan Ying Tong and some parties to establish a new bank in Cambodia, which the name of Public Bank Berhad has been mentioned. We wish to clarify that the Public Bank Group has no involvement at all in the said joint venture.

The Public Bank Group wishes to further clarify that Datuk Phan Ying Tong had resigned from all his positions within the Public Bank Group and is no longer the Regional Head of Public Bank’s Indo-China Operations. Following Datuk Phan’s resignation, he is no longer authorised to represent the Public Bank Group in any matters.

Any latest information of the Public Bank Group would be made available in its website www.publicbankgroup.com.

* * * * * *

November 2020

27

Nov 2020

FOR IMMEDIATE RELEASE

20 December 2021

Public Bank Group Posted Pre-Tax Profit Of RM4.81 Billion For The Nine Months Ended September 2020

Highlights on Financial Performance

For the third quarter ended September 2020, the Public Bank Group’s pre-tax profit and net profit attributable to shareholders grew by 2.3% and 2.2% respectively, as compared to the corresponding quarter in 2019.

As for the first nine months of 2020, the Public Bank Group posted pre-tax profit of RM4.81 billion, 9.4% lower as compared to the corresponding period in 2019. Net profit attributable to shareholders stood at RM3.72 billion, 9.3% lower than the first nine months in 2019. This was mainly due to the moderating revenue growth arising from the COVID-19 pandemic, the effect of the Overnight Policy Rate (“OPR”) reduction during the year, as well as the one-off net modification loss of RM498 million incurred in the second quarter due to the COVID-19 relief measures offered to individuals and businesses.

Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank, said, “The COVID-19 pandemic continued to pose significant uncertainties to the economic landscape and the business environment on all fronts. Further, a total of 125 basis points cut in the OPR this year and the higher provisions set aside in anticipation of the COVID-19 pandemic effect had continued to weigh on profitability.”

Tan Sri Teh added, “However, as the economy gradually reopened and supported by the various government relief and stimulus measures, the economic environment in the third quarter of 2020 had shown an improvement. The Public Bank Group recorded higher loan growth in the third quarter as compared to the earlier quarters. Total loans grew by an annualised rate of 4.8% in the first nine months of 2020. Domestic loans grew by an annualised rate of 5.6%, which was higher than the domestic banking industry’s annualised loan growth of 4.0%. On funding side, the Group posted annualised growth rate of 3.9% in both total deposits and domestic deposits.”

Non-interest income continued to support the Group’s financial performance, with 17.8% growth in the first nine months of 2020, mainly driven by higher investment income, as well as higher income from unit trust and stockbroking businesses.

Public Mutual, the Public Bank Group’s wholly-owned subsidiary, remained the main contributor to the Group’s non-interest income. As at end-September 2020, Public Mutual managed a total of 162 unit trust funds, with its total net asset value increasing from RM86.6 billion as at end-2019 to RM94.1 billion as at 30 September 2020. Public Mutual also remained as the market leader in the retail private unit trust industry, with a market share of 32.9%.

Tan Sri Teh highlighted, “Despite the various challenges faced in 2020, the Group recorded a resilient net return on equity of 11.3% in the first nine months of 2020. Cost-to-income ratio stood at 35.2%, as compared to the domestic banking industry’s cost-to-income ratio of 44.7%.”

Tan Sri Teh added, “Meanwhile, impaired loan ratio remained low at 0.3%, which was significantly better than the domestic banking industry’s impaired loan ratio of 1.4%. In addition, the Group maintained a high loan loss reserves of 209.1%. Including the RM1.7 billion regulatory reserves that the Group had set aside, total reserves for loan losses were even higher at 362.0%.”

Managing Impact of COVID-19

Tan Sri Teh highlighted, “While the difficult economic condition has continued to pose risks to asset quality, the Public Bank Group has remained in a good position to navigate the challenge. The Group’s resilient loan portfolio, prudent lending practices and strong credit risk profile have laid a solid foundation for the Group to manage any potential stress on asset quality. In addition to the various financial relief measures by the Government and Bank Negara Malaysia, the Group has also been taking pre-emptive initiatives in reaching out to customers who may need further financial assistance, and this will further mitigate any downside pressure to the Group’s asset quality.”

While the Group remains extra vigilant to sustain its business stability amid the highly uncertain environment, it has continued to extend its financial assistance to the customers.

In the third quarter of 2020, the Group continued to provide loan and financing moratorium to individuals and business enterprises. After the moratorium period ended on 30 September 2020, the Group has continued to proactively engage its customers to provide further financial assistance.

Tan Sri Teh said, “The Public Bank Group has been actively implementing post-moratorium loan repayment assistance programme for customers who have encountered loss or reduction in income due to the COVID-19 pandemic. The programme consists of various repayment packages which suit varying customers’ financial conditions. To ensure customer awareness and convenience in seeking further assistance, the Group has carried out various activities and facilities, such as weekend Repayment Assistance Clinic, digital application platform, virtual roadshow, as well as SMS and email blast through its extensive communication channels.”

Tan Sri Teh added, “Additionally, the Group has continued to be an active participating financial institution offering various Government and Bank Negara Malaysia’s special financing schemes to the small and medium enterprises (“SMEs”) which are affected by the COVID-19 pandemic. These include Bank Negara Malaysia’s Special Relief Facility, PENJANA SME Financing Scheme, PENJANA Tourism Financing Scheme, Government Guarantee Scheme, Bank Negara Malaysia’s SME All Economic Sectors Facility, SME Automation and Digitalisation Facility, Agrofood Facility and Micro Enterprises Facility. The Group has approved more than RM3 billion financing to about 14,000 businesses under such special financing schemes.”

Tan Sri Teh further added, “During this challenging period, the Public Bank Group’s active participation in all the various financial relief measures, including loan moratorium, loan restructuring and rescheduling and special financing schemes, has benefitted more than 1.8 million customers.”

Healthy Capital and Liquidity Position

Tan Sri Teh said, “As always, the Public Bank Group has been highly vigilant in its capital and liquidity management to ensure its capital strength and balance sheet remain resilient throughout this unprecedented difficult period.” As at the end of September 2020, the Public Bank Group’s capital position was standing strong, with its Common Equity Tier 1 Capital Ratio, Tier 1 Capital Ratio and Total Capital Ratio at 13.6%, 13.7% and 16.8% respectively. The Group’s liquidity coverage ratio also remained healthy at 159.0%.

Group’s Prospect

The global economic growth is set to contract this year due to the wide-ranging and severe impact arising from the COVID-19 pandemic on economic activities and social movements. On the domestic front, while the Malaysian economy is expected to be on the negative trajectory for the whole of 2020, gradual economic recovery and the significant support measures by the Government and Bank Negara Malaysia will continue to cushion the adverse impact of the pandemic. However, the resurgence of COVID-19 among the community has remained a concern.

Tan Sri Teh said, “In line with the concerted efforts by the Government and Bank Negara Malaysia to provide financial relief to individuals and businesses and spur the country’s economy, the Public Bank Group will continue to take a proactive and accommodative stance in the provision of assistance to its customers.”

Tan Sri Teh concluded, “Against this unprecedented challenging environment, the Group has been managing well in safeguarding its bottom line. As the outlook remains highly uncertain, the Group will continue to focus and be extra vigilant to ensure prudent credit policies, robust risk management, cost efficiency and good corporate governance. As the Group embraces challenges with these strong core competencies, the Group will also remain agile and leverage on the opportunities arising from the shift in customer demand and needs during this challenging time.”

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

* * * * * *

16

Nov 2020

FOR IMMEDIATE RELEASE

16 November 2020

Public Islamic Bank Launched Solar Panel Financing for Residential Houses

Public Islamic Bank Berhad (PIBB) launched the Solar Panel Financing for residential houses aimed exclusively for existing PIBB and Public Bank Berhad (PBB) house financing customers, beginning from 12 November 2020 to 31 December 2021.

This financing package is part of the PIBB’s effort to contribute positively to the society’s well-being via the Value Based Intermediation (VBI).

VBI aimed to align Islamic finance business models towards realising the objectives of Shariah principles to generate positive and sustainable impact to the economy, community and environment.

The financing rate is from Base Rate (BR) +2.00% per annum (currently BR is at 2.27% p.a. with effect from 10 July 2020) with tenure up to 10 years.

Apart from protecting the environment with electricity generated from sustainable sources, customers will also save money due to lower or zero electricity bills, depending on usage.

This campaign also supported the government’s initiative to encourage Malaysia’s renewable energy uptake where the solar panel will operate under schemes from Sustainable Energy Development Authority (SEDA) including Net Energy Metering (NEM) and Self-Consumption (SELCO). Customers may choose their preferred solar company from the Bank’s list of solar company partners.

PIBB is also looking into offering this financing to commercial sector in the near future as it is expected to produce positive impact to the environment from sustainability perspectives as well as contribute to cost savings for participating companies.

For further details, customers may visit any of PBB/PIBB’s branches, log on to PIBB’s website at www.publicislamicbank.com.my or call the toll-free number at 1-800-22-5555 during normal working hours. Terms and conditions apply.

* * * * * *

6

Nov 2020

For Immediate Release

6 November 2020

Comments On The Budget 2021

We commend the Government in formulating Budget 2021 which leaves no one behind. With an immediate focus on protecting livelihoods while also supporting and revitalising businesses, we are confident that the measures announced will help see Malaysia’s economic growth well on the road to a sustained recovery.

We are fully supportive of the Government’s moves in ensuring the truly deserving, especially the B40 and unemployed, are fully taken care of, either through specific initiatives or targeted assistance. We applaud the Government’s finger on the pulse of the nation in meeting the needs of the day through increasing the quantum of personal and corporate financial assistances and the expanding of various subsidy and financing schemes.

During this trying time, Public Bank will continue to actively engage and assist customers by providing further assistance required under the expanded targeted repayment assistance programme.

Public Bank will continue to be fully supportive of the Government’s measures by facilitating continued access to financing, particularly business financing for the small and medium enterprises. In addition, we will continue to support financing for affordable housing, in line with the Government’s efforts to promote home ownership among Malaysians.

The strengthening of various industries by the Government, the continuation of ongoing infrastructure projects and the many incentives to encourage private sector investments will contribute to the broad-based recovery and economic growth expected in 2021.

We will continue to effectively facilitate the Government’s Budget 2021 themes of caring for the people, steering the economy and enabling sustainable living. Unprecedented times call for extraordinary measures and collective effort, a call by the Government which we are in full support of.

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

* * * * * *

October 2020

21

Oct 2020

FOR IMMEDIATE RELEASE

21 October 2020

Public Bank Remains Committed to Provide Targeted Repayment Assistance After 30 September 2020

With the resurgence of COVID-19 and several areas falling under Conditional Movement Control Order (CMCO) and Enhanced Movement Control Order (EMCO) such as Kuala Lumpur, Selangor, Putrajaya, Sabah and Labuan, Public Bank reassures customers that its commitment and provision of repayment assistance will continue nationwide.

Public Bank Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Tay Ah Lek said today, “Public Bank remains fully committed to provide assistance for customers who need financial help under the prevailing challenges resulted from the unprecedented pandemic. In addition to the rescheduling of repayment plan for customers who encounter a reduction in income, all applications by customers who are unemployed arising from the pandemic have been granted a further 3-month extension of loan moratorium.”

With earlier 6-month loan moratorium ended on 30 September 2020, Public Bank continued its commitment to provide assistance to customers who face financial constraints and actively engage them to provide further financial assistance.

Public Bank’s loan repayment assistance programme consists of various flexible packages which are catered for the varying needs of individual customers and business enterprises. Since the commencement of targeted repayment assistance, Public Bank has to date approved more than 90,000 applications, accounting for almost 100% of total applications received from customers. Of these approved cases, about 28% of applications have been granted extension of 3-month loan moratorium due to the unemployment caused by the pandemic.

Tan Sri Tay added, “For the general public and customers, Public Bank assures continued banking services remain accessible throughout the movement control period. Our branches and online banking platforms will also remain operational to meet customers’ banking needs.”

The Bank is fully committed and remains accommodative to repayment assistance applications and customers may continue to contact the Bank via email or telephone. Alternatively, customers may submit their applications via Public Bank’s digital platform. For further information, customers may visit the Bank’s website at https://apply.pbebank.com/pbrnr/.

* * * * * *

13

Oct 2020

FOR IMMEDIATE RELEASE

13 October 2020

Thorough Disinfection Following Confirmed COVID-19 Case in Menara Public Bank

Public Bank confirms that one of its staff at Menara Public Bank, Jalan Ampang, Kuala Lumpur, has been tested positive for COVID-19 on 12 October 2020. The said staff had not reported to work since 10 October 2020.

Deep cleansing and thorough sanitisation activities have been carried out immediately on the affected floors in accordance with Kementerian Kesihatan Malaysia guidelines. As an added precaution, the Bank has also deeply cleansed and sanitised all common areas. Disinfection will also be carried out in the entire building.

All employees who had come into close contact with that affected staff had been placed on home-quarantine and tested for COVID-19 at the Bank’s appointed private hospital.

Public Bank’s Management is continuously enhancing the staff safety measures to contain any potential risks. All staff have been advised to practise self-hygiene and adhere closely to the Standard Operating Procedures issued by Ministry of Health, as well as the provisions of Conditional Movement Control Order.

The safety and wellbeing of every staff is Public Bank’s top priority. Public Bank is also taking all necessary precautionary measures to ensure the health and safety of its staff and customers in the Bank’s premises.

* * * * * *

September 2020

24

Sep 2020

FOR IMMEDIATE RELEASE

24 September 2020

Public Bank Founder Bags Promoting “Excellence at Work” Award from Vietnam

Public Bank Founder, Chairman Emeritus, Director and Adviser Tan Sri Dato’ Sri Dr. Teh Hong Piow has added another feather to his cap with his latest award, the “Outstanding Contribution in Promoting “Excellence at Work” and in Strengthening Trade Union in 2019” award by the Vietnam Banking Trade Union.

This latest personal-to-holder award is in recognition of Tan Sri Teh’s extraordinary contribution towards establishing and sustaining a strong corporate culture and promoting the well-beings of all employees of Public Bank Vietnam Limited (PBVN).

In his speech at the award presentation ceremony at Shangri-La Hotel Kuala Lumpur on 22 September 2020, Managing Director Tan Sri Dato’ Sri Tay Ah Lek said it is a proud moment for all in Public Bank as they feel an equal sense of achievement and pride in Tan Sri Chairman Emeritus’ personal triumph.

“Tan Sri Chairman Emeritus has always believed that the respect and influence of the Group depends on the virtues and standards that the Group is able to develop and maintain. To ensure the Group’s corporate longevity, Tan Sri Chairman Emeritus has been unwavering in imbibing us with our core corporate values of integrity, competence and professionalism, hard work and prudence,” he said.

This is the first time the Vietnam Banking Trade Union has honoured a non-resident of Vietnam and with the recognition certificate signed by His Excellency Mr. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, who is also the Chairman of the Executive Board of Vietnam Banking Trade Union.

In acknowledging the award, Tan Sri Teh said, “Entrepreneurship is tough business. Hence it is important that I make it my priority to develop talents who understands the business and is serious to excel. Just like a gardener providing water and other nourishment to our staff.”

He added, “But to get to where we are, to be recognised as a committed employer to the well-being and talent development of our employees, one needs to shoulder the responsibility of keeping the staff in mind in every decision you make.

“Every day, when our staff come to work, they live by our corporate values and code of ethics as they know how much I believe in core values like integrity, hard work, commitment and a sense of professionalism,” Tan Sri Teh added.

The recognition award which was presented to him on 22 September 2020, comes with a Crystal Trophy and a token sum of Vietnamese Dong (VND) 750,000 as a reward in accordance with the prevailing regulations of the Vietnam Banking Trade Union.

Dedicating the award to “the committed staff of Public Bank,” he said: “Nothing stops them from doing what is best for our stakeholders. They are the unsung heroes who have stood the test of time with me, weathering financial storms and economic turmoil, to come out unscathed while creating milestones that are enviable to many.”

To date, Public Bank has amassed more than 600 corporate awards of excellence and distinction, while Tan Sri Teh has accumulated more than 50 personal-to-holder awards of lifetime achievements and exemplary leadership.

Public Bank Founder, Chairman Emeritus, Director and Adviser Tan Sri Dato’ Sri Dr. Teh Hong Piow (centre) with Managing Director Tan Sri Dato’ Sri Tay Ah Lek (left) and Independent Non-Executive Chairman Mr. Lai Wan (right) with the award by the Vietnam Banking Trade Union.

* * * * * *

22

Sep 2020

FOR IMMEDIATE RELEASE

22 September 2020

FinCEN Database Leak

We refer to the recent news item on the US Treasury Department's Financial Crimes Enforcement Network (FinCEN) leaks concerning numerous banks and where our Bank was mentioned.

Public Bank views seriously the need to combat financial crimes and to comply with all applicable legal, regulatory and supervisory requirements to safeguard against threats to its customers and the banking system.

We have always adopted a zero tolerance approach towards money laundering and terrorism financing.

Monitoring and reporting of suspicious transactions are part of obligation under AML/CFT frameworks. Public Bank is subjected to strict arrangements in protecting the confidentiality and security of suspicious transaction reporting within secured IT system environment and information controls.

We have invested substantially in our systems capabilities to detect and report suspicious transactions to the authorities and have allocated significant resources to strengthening and maintaining our internal controls towards this purpose.

We remain committed in the efforts to combat financial crimes and will cooperate with the authorities to maintain the integrity of the financial system.

* * * * * *

17

Sep 2020

FOR IMMEDIATE RELEASE

17 September 2020

Public Bank Clinched 8 of Malaysian e-Payments Excellence Awards 2020

Public Bank Berhad (PBB) has emerged as the biggest winner for the Malaysian e-Payments Excellence Awards (MEEA) 2020 by clinching eight awards for its outstanding contribution towards the growth of Malaysia’s e-payment ecosystem.

The MEEA is organised annually by Payments Network Malaysia Sdn Bhd (PayNet), the nation’s network and shared central infrastructure for Malaysia’s financial markets, to recognise outstanding achievements of banks, businesses and government agencies that have contributed significantly towards excellence, innovation and growth in electronic payments in Malaysia.

The eight awards that PBB won were: Best e-Payment Bank, Best IBG Bank, Best Customer Experience (FPX), Best JomPAY Bank, Best MyDebit Bank, Top JomPAY Acquirer, Top MyDebit Acquirer and Outstanding Contribution to MyDebit.

The awards recognise PBB’s effort in propelling e-Payments in Malaysia to greater heights which include usage, acceptance, growth, reliability, customer engagement and experience.

This is the second time PBB won the Best e-Payment Bank and for the fourth year running, PBB is recognised as the Best MyDebit Bank in Malaysia as well as retaining the award of Outstanding Contribution to MyDebit and MyDebit Top Acquirer Award.

PBB is committed and focused in driving e-Payments by providing customers and the public with alternative channels to transact more reliably, securely and efficiently at their convenience as a new norm for the nation to curb the spread of Covid-19 and reduce the physical contact between buyers and traders.

PBB will continue to provide full support to boost the country’s migration to electronic payments by launching more e-Payment initiatives and will continuously enhance its digital banking platform to make e-Payments seamless for everyone.

PBB have also launched the Bank’s PBe QR, a simple, secure and seamless way for merchants to accept payment from their customers. Powered by PayNet’s DuitNow QR, the general public can make payment from any participating Banks or e-Wallets mobile apps. Merchants would only need to display the DuitNow QR, to accept payments without having to display multiple proprietary QR codes at payment counters.

PBe QR is a game changer as it enables businesses of all categories to accept payments easily at no cost. For a limited period, PBe QR will be offered to registered merchants at zero fees. PBe QR is opened for registration at Public Bank’s official website.

The usage of QR codes will reduce cash usage and increase digital financial inclusion for all Malaysians. The technology removes the need for customers to carry cash which liberates both customers and merchants from the risks of carrying cash.

(From Left): Public Bank Card Services and Support's Director, Mr. Tee Chui Chee; Ms. Chan Chiew Peng, Senior General Manager of Retail Financial Services; Dato’ Chang Kat Kiam, Deputy CEO of PBB; Mr. Peter Schiesser, Group CEO of PayNet; Tan Sri Dato' Sri Tay Ah Lek, Chief Executive Officer/Managing Director of PBB; Dato' Sulaiman Manap, Senior Chief Operating Officer of PBB and Ms. Carene Khoo, Director of Wealth Management & Transaction Banking of Public Bank.

* * * * * *

11

Sep 2020

FOR IMMEDIATE RELEASE

11 September 2020

Public Bank to Hold Repayment Assistance Clinics

Public Bank will hold Repayment Assistance Clinics (PBB RAC) at major cities and towns nationwide on Saturday and Sunday for six weeks, starting from 19 September 2020.

At the PBB RAC, Public Bank will provide advisory services and application assistance for customers who seek further help after the 6-month loan moratorium ends on 30 September 2020. Participation is through pre-registration. Customers can access to the Public Bank’s website for event details and the pre-registration procedures.

Public Bank Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Tay Ah Lek said, “As part of its relief measures, Public Bank has developed repayment assistance packages which suit different customer’s financial conditions. The Bank has also been very proactive in engaging customers about the relief measures in place. In addition to the digital platform which enables customers to submit online application, we are organising the weekend PBB RAC as an additional channel for customers who need further assistance on application. This is also to provide more convenience to customers who are unable to visit our branches during weekdays.”

For customers who wish to submit online applications for rescheduling of their repayment plans, they may continue to apply through Public Bank’s digital platform via the Bank’s website at https://apply.pbebank.com/pbrnr.

* * * * * *

3

Sep 2020

FOR IMMEDIATE RELEASE

3 September 2020

Public Islamic Bank “Go Green Campaign” Distinctively for Energy Efficient Vehicle (EEV)

Public Islamic Bank Berhad is pleased to participate in Value Based Intermediation (VBI), an initiative from Bank Negara Malaysia by launching our EEV campaign under AITAB Hire Purchase-i Financing. VBI aims to align Islamic finance business models towards realizing the objectives of Shariah to generate positive and sustainable impact to the economy, community and environment.

The promotion period of this Campaign is from 1 April 2020 to 31 December 2020. The exclusive financing rate is as low as 2.20% per annum with tenure up to 9 years. This campaign is designed to support local growth and usage of EEVs in Malaysia to reduce carbon emission into our environment. BE SMART, by saving fuel consumption with EEVs while GOING GREEN and saving the earth. This promotion is only applicable to selected new vehicle models.

Public Islamic Bank will also be launching a residential solar panel financing program with attractive financing rates to benefit our existing customers. This solar program is expected to produce positive sustainable effect to the environment and contribute towards cost savings for our customers.

For detailed information on this campaign, customers are welcomed to visit any of our Hire Purchase Centres, log on to PIBB website at www.publicislamicbank.com.my or call our toll-free number at 1-800-22-7777 during normal working hours. Terms and conditions apply.

* * * * * *

August 2020

28

Aug 2020

FOR IMMEDIATE RELEASE

28 August 2020

Public Bank Group Posted Pre-Tax Profit Of RM3.01 Billion For The First Half Of 2020

Highlights on Financial Performance

Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank, announced today, “For the first half year ended 30 June 2020, the Public Bank Group recorded pre-tax profit of RM3.01 billion, 15.3% lower as compared to the corresponding period in 2019. Net profit attributable to shareholders decreased by 15.0% to RM2.33 billion.”

The decline in profit was mainly attributed to a one-off net modification loss amounting to RM498 million in the second quarter of 2020, arising from the COVID-19 relief measures offered to individuals and businesses. This reflects the Group’s commitment and contribution in supporting and helping its customers to overcome financial difficulties during this challenging time.

Excluding the modification loss, the Group’s pre-tax profit and net profit attributable to shareholders declined by 1.2% in the first half of 2020, as compared to the previous corresponding period in 2019.

The Group recorded a net return on equity of 10.7% in the first half of 2020. Excluding the one-off modification loss effect, the Group’s net return on equity would have been 12.4%.

In addition to the modification loss incurred in respect of the COVID-19 related relief measures, the Group’s profitability was also affected by the compression in net interest margin due to the reductions in Overnight Policy Rate, and higher provisions set aside for the expected increase in impaired loans due to the COVID-19 pandemic. However, the adverse impact on profitability was mitigated by the continued expansion of the Group’s loan and deposit portfolio, and higher non-interest income.

Tan Sri Teh added, “In the first half of 2020, the Group registered continued expansion in loans, albeit at a more moderate pace. The Group’s total domestic loans grew at an annualised rate of 2.6%. On deposit-taking, the Group’s total domestic customer deposits posted an annualised growth rate of 3.3%. The Group’s funding position remained stable with a healthy liquidity coverage ratio of 145.7% as at the end of June 2020.”

Non-interest income continued to complement the Group’s profitability. In the first half of 2020, the Group’s non-interest income increased by 8.2%, mainly arising from unit trust business, as well as higher investment and brokerage income.

In terms of cost efficiency, the Group continued to take the lead in the banking industry. Despite the effect of the modification loss and reductions in Overnight Policy Rate, the Group’s cost-to-income ratio of 37.9% in the first half of 2020 remained significantly better than the domestic banking industry’s cost-to-income ratio of 44.7%.

Tan Sri Teh commented, “On asset quality, the Group’s gross impaired loan ratio stood at 0.4% as at end-June 2020, which remained well below the banking industry’s gross impaired loan ratio of 1.5%. The Group’s loan loss coverage ratio remained high at 158.7%. Including the RM1.9 billion regulatory reserves that the Group had set aside, its total reserves for loan losses would be higher at 301.7%.”

The unprecedented COVID-19 pandemic will pose a risk to the asset quality of the banking sector. However, the Government’s stimulus packages and Bank Negara Malaysia’s financial and monetary relief measures, including the loan moratorium, will help to mitigate the downside risks. In addition, the Group is proactively engaging its customers to provide further assistance required through restructuring and rescheduling of loans. With all these measures in place, coupled with the Group’s resilient credit profile and prudent lending practices, the potential pressure on the Group’s asset quality is expected to be manageable.

Managing the Impact of the Unprecedented Pandemic Crisis

During this current time of challenges, the Public Bank Group continued to play a positive role in the economy and the community.

Tan Sri Teh said, “This is an unprecedented crisis. During this challenging period, the Group has been taking various measures aimed at providing support to customers, while continuing to preserve the Group’s bottom line.”

In the first half of 2020, the Group’s lending activities continued to focus on providing financing for the purchase of residential properties focusing on owner occupied properties, and lending to the small and medium enterprises (“SMEs”). In particular, the Group had been playing a very proactive role in promoting SME funds initiated by the Government and Bank Negara Malaysia.

Tan Sri Teh added, “To alleviate cash flow constraint faced by the SMEs, Bank Negara Malaysia had initiated the Special Relief Facility at a low 3.5% per annum financing rate. As at end-June 2020, the Group had approved more than RM1.7 billion financing to about 8,000 SME customers under the facility. Further, the Group is also a participating financing institution of the PENJANA SME Financing Scheme which is offered at a low financing rate of 3.5% per annum.”

In line with the reductions in Overnight Policy Rate, the Group had cut its loan and financing interest rates to pass on the benefits of lower rates to the customers. The Group also tapped on the Government’s initiatives in promoting home ownership such as the Home Ownership Campaign to further spur its house financing business.

Since the onset of the crisis, concerns about the banking industry’s asset quality have been on the rise due to customers’ cash flow constraint. Tan Sri Teh highlighted, “While the 6-month loan moratorium has helped to mitigate the impact, higher pressure on asset quality is expected after the loan moratorium ends. The Group is committed to continue providing support to assist customers to weather through the challenging period. The Group will continue to undertake proactive engagement with its customers on financial assistance. For customers who face continued financial stress, the Group has offered loan repayment plans and packages that suit the customers’ financial needs.”

On deposits, the Group recognises that the low interest rate regime would have affected the elderly customers’ income. In view of this, the Group has on 1 July 2020 rolled out the PB Journey Golden Savers campaign, offering competitive fixed deposit rates to customers aged 50 years and above.

In addition, preserving sound balance sheet remains a key focus area of the Group. Tan Sri Teh commented, “Amid the significant economic disruption and increasing earnings pressure, the Group has placed greater emphasis on prudent cost management to preserve profitability.”

Healthy Capital and Liquidity Position

As at the end of June 2020, the Public Bank Group’s capital position was standing strong, with its Common Equity Tier 1 Capital Ratio, Tier 1 Capital Ratio and Total Capital Ratio further strengthened to 14.0%, 14.0% and 17.2% respectively. The Group’s liquidity coverage ratio also stood at a healthy level of 145.7%.

Under the current unprecedented and exceptionally challenging environment with high level of uncertainties and significant downside risks weighing on the global economic outlook, the Group regards that careful assessment of dividend plans is crucial. As part of its prudent capital management to conserve capital and further strengthen its capital position, the Board of Directors has decided to reassess its dividend plans at year end upon finalisation of the Group’s full year results. This will ensure the Group to sustain resilient capacity to continue support its stakeholders and the wider economy on future growth path.

Tan Sri Teh reiterated, “Its strong capital and liquidity buffer will continue to enable the Group to withstand challenges ahead. The Group will always ensure it remains well-capitalised and well-funded to support its business growth and safeguard the interests of its stakeholders.”

Group’s Prospect

The global economy has been severely impacted by the COVID-19 pandemic, with the world GDP expected to slump into negative growth this year. Amid this significant economic disruptions, governments across countries have rolled out various relief measures with the aim to mitigate the adverse impact on the economy. The pace of post pandemic recovery remains uncertain with high level of caution remaining in the economy.

Tan Sri Teh commented, “The current condition poses an exceptional challenge. The Group views positively the significant relief measures implemented by the Government and Bank Negara Malaysia to help the nation to navigate this challenging period. Public Bank is also actively extending its assistance through monetary contribution, loan moratorium, as well as restructuring and rescheduling of loan repayment to lessen the hardship and financial burden of the people affected.”

On the Group’s strategy going forward, Tan Sri Teh concluded, “The Group will continue to focus on its organic growth strategy in retail and commercial banking. With the various measures taken to provide financial assistance to SMEs and support home ownership, the Group is of the view that there is still demand for financing. However, as the outlook remains uncertain, the Group will remain cautious and place greater focus on risk management in its pursuit of business growth. In addition, prudent cost management will remain important and the Group will continue to explore ways to further enhance its operational efficiency and productivity.”

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

* * * * * *

3

Aug 2020

FOR IMMEDIATE RELEASE

3 August 2020

Public Bank To Provide Further Loan Repayment Assistance To Targeted Customers

Public Bank stands ready to provide loan repayment assistance for its customers who continue to experience difficulties in servicing their loans upon the expiry of the 6-month loan moratorium on 30 September 2020.

Public Bank has developed a loan repayment assistance programme to support its individual customers who have lost their jobs or encounter salary reduction, and SME customers who are experiencing cash flow constraint due to the COVID-19 pandemic. The Bank’s repayment assistance consists of various repayment packages which suit its customers’ financial conditions.

Public Bank has also developed a digital platform to enable eligible customers to submit online application for rescheduling of their repayment plans. The digital platform will enable a more simplified, efficient and effective application and approval process of repayment plans for customers. Public Bank’s customers are advised to submit online application through the digital platform via Public Bank’s website starting from 7 August 2020.

For individual customers who have lost their jobs in 2020 and are currently unemployed, Public Bank will offer an extension of loan moratorium for 3 months with effect from 1 October 2020. These customers who wish to apply for this moratorium extension may contact the Bank and submit their applications with the required documents.

Public Bank Managing Director and Chief Executive Officer, Tan Sri Dato’ Sri Tay Ah Lek said today, “The COVID-19 pandemic has significantly impacted the economy. Public Bank understands that some customers may continue to face difficulties in cash flow due to the longer than anticipated impact of the pandemic.”

Tan Sri Tay added, “Public Bank is here to help and is fully committed and supportive in helping customers through financial hard times. Our engagements with customers have been ongoing. The Bank’s repayment assistance packages have been carefully structured, taking into consideration the temporary cash flow constraints of our customers. These packages will enable our customers to gradually readjust their financial positions over an extended period of time.”

Customers who intend to apply for the repayment assistance on their loan and financing are advised to approach any Public Bank branches, or visit our website at https://apply.pbebank.com/pbrnr for further information. Alternatively, customers may email to customerservice@publicbank.com.my for advice and assistance.

Tan Sri Dato’ Sri Tay Ah Lek
Managing Director and Chief Executive Officer of Public Bank

* * * * * *

July 2020

8

Jul 2020

FOR IMMEDIATE RELEASE

8 July 2020

Public Bank And Public Islamic Bank To Reduce Its Base Rate By 0.25%

Public Bank will reduce its Base Rate (BR) and Base Lending Rate (BLR) / Base Financing Rate (BFR) by 0.25% effective 10 July 2020, in line with Bank Negara Malaysia’s Overnight Policy Rate (OPR) cut by 25 basis points (bps) from 2.00% to 1.75% on 7 July 2020.

At the same time, Public Bank’s fixed deposit rates will also be correspondingly adjusted by 0.25%, effective on the same date.

The 25 bps cut in OPR will further stimulate the country’s economic recovery process. Public Bank is committed to provide continuous financial assistance to its customers to tide over this unprecedented challenging period.

* * * * * *

June 2020

5

Jun 2020

FOR IMMEDIATE RELEASE

5 June 2020

Spreading Raya Cheer to Needy Children: Public Bank Contributed to Two Children’s Homes

Public Bank, which is known as ‘bank for the public’, contributed a total of RM 25,850 in cash and electrical items for two children’s homes to bring happiness and joy to the less fortunate children during the holy month of Ramadan.

Adapting to the new normal of Conditional Movement Control Order (CMCO) implemented by the Government to curb the spread of COVID-19, instead of having visitations by the Bank’s staff to children’s homes which was done previously, a mock cheque presentation to the representatives of the homes was carried out in Menara Public Bank on 3 June 2020.

The two children’s homes are Rumah Kanak-Kanak Tengku Budriah and Pusat Jagaan Nuri and both are based in Kuala Lumpur with a total number of 160 children. The electrical items will be sent to the respective homes separately.

A continuation of the Bank’s corporate social responsibilities activities all year long, this is part of our ongoing commitment as a caring corporate citizen.

Public Bank’s Public Affairs Division (PAD) Senior General Manager Dato’ Razak Dali (centre) with the representatives of the children’s home, Pusat Jagaan Nuri’s Senior Assistant, Puan Isnianti Osman (third from left) and Rumah Kanak-Kanak Tengku Budriah Cheras’s Principal, Encik Mohd Hafizul Bin Abd Ghani (third from right) and representatives from the homes and staff from PAD during the mock cheque and gifts presentation in Menara Public Bank recently.

* * * * * *

May 2020

22

May 2020

FOR IMMEDIATE RELEASE

22 May 2020

Public Bank Group Posted Pre-tax Profit of RM1.73 Billion in the First Quarter of 2020

The Public Bank Group recorded a pre-tax profit of RM 1.73 billion in the first quarter of 2020, representing a 5.1% decline as compared to RM1.82 billion achieved in the corresponding period last year. Net profit attributable to shareholders was 5.7% lower at RM 1.33 billion. As a result, the Group posted a lower net return-on-equity of 12.5%.

Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank, said today, “The global economy started 2020 with major challenges stemming from the Covid-19 pandemic. Downside pressure on the economy was further compounded with the steep fall in global oil prices. Coupled with the reductions in Overnight Policy Rate which have weighed on net interest margins, domestic banks faced heightened earnings pressure in the first quarter of 2020.”

Tan Sri Teh added, “However, the Public Bank Group maintained its resilient fundamentals, as reflected in the Group’s stable gross impaired loan ratio of 0.5% and efficient cost-to-income ratio of 35.7% in the first quarter of 2020.”

Continued Growth in Loans and Deposits

Although economic activities were affected by the outbreak and its containment measures, the Public Bank Group was able to achieve continued loan and deposit growth in the first quarter of 2020, albeit at more moderate growth rates.

The Group has always been proactively supporting the financing needs of consumers and businesses. In the first quarter of 2020, the Group recorded an annualised rate of 2.9% growth in total loans, supported by residential properties financing, commercial property financing, and passenger vehicle financing.

On deposit-taking, the Public Bank Group’s total customer deposits posted an annualised growth rate of 2.0%.

Sustained Growth in Non-interest Income

In the first quarter of 2020, the Public Bank Group’s non-interest income continued to be supported by its unit trust related income, banking fee income, investment income and brokerage income.

Tan Sri Teh added, “The Public Bank Group’s unit trust business, managed by its wholly-owned subsidiary, Public Mutual, remained the major contributor of the Group’s non-interest income. As at 31 March 2020, Public Mutual maintained its market leadership in the retail private unit trust industry, with a market share of 34.3%. It managed a total of 158 unit trust funds with a net asset value of RM78.4 billion.”

Prudent Cost Management

Despite that the net interest margins were under pressure, the Public Bank Group continued to record an efficient cost-to-income ratio. In the first quarter of 2020, the Group’s cost-to-income ratio stood at 35.7%, which was significantly better than the domestic banking industry’s cost-to-income ratio of 44.7%.

Tan Sri Teh highlighted, “Rising costs are increasingly putting pressure on profitability. However, the Public Bank Group continues to stand out amongst its peers in cost efficiency. With the current economic challenges and the moderating revenue growth, the Group has placed greater focus on broad-based cost efficiency to protect its profitability.”

Sustained Strong Asset Quality

The Public Bank Group’s gross impaired loan ratio stood at 0.5% as at the end of March 2020, reflecting its stable asset quality despite the significant challenges in the operating environment.

Tan Sri Teh commented, “The Public Bank Group’s stable asset quality was underpinned by its prudent risk management as well as lending policies and practices, along with its proactive efforts to engage with borrowers on loan recoveries.”

Tan Sri Teh further added, “In the face of the current extremely difficult economic condition, the Group has been actively engaging and assisting customers who encounter constraints in cash flows. In line with Bank Negara Malaysia’s directive, the Group has been offering 6-month loan moratorium as well as loan restructuring and rescheduling for borrowers who face cash flow difficulties. These relief measures, coupled with the Group’s prudent lending policy and strong credit risk profile, are expected to continue underpin the Group’s resilient asset quality.”

Further, the Public Bank Group has been maintaining a high loan loss coverage ratio which stood at 131.9% as at the end of March 2020. Including the RM2.0 billion regulatory reserves that the Group had set aside, its loan loss coverage was higher at 261.7%.

Healthy Capital and Liquidity Position

As at the end of March 2020, the Public Bank Group’s common equity Tier 1 capital ratio stood at 13.3%, Tier 1 capital ratio at 13.3% and total capital ratio at 16.5%.

Tan Sri Teh highlighted, “2020 will be exceptionally challenging and earnings will be under pressure for banks. Nonetheless, the Public Bank Group’s resilient capital position, as well as its strong asset quality and large loan loss reserves, continue to provide a strong buffer to the Group in navigating any challenges.”

Tan Sri Teh further highlighted, “In terms of liquidity management, the Public Bank Group has been constantly managing its funding and liquidity profile diligently to ensure sufficient liquidity buffer is maintained at all times. The Group’s liquidity coverage ratio stood at a healthy level of 135.1% as at the end of March 2020.”

Group’s Prospect

In 2020, the Covid-19 pandemic and its impact on world economies, as well as the uncertainty in global oil prices are likely to continue to pose downside risks to the economy. However, proactive relief measures taken by the Government as announced in the Prihatin Rakyat Economic Stimulus Package and Bank Negara Malaysia’s financial and monetary measures will certainly mitigate the pressures on the country’s economic growth.

Tan Sri Teh concluded, “The operating environment for the banking industry is poised to be more challenging this year. With the extremely difficult economic conditions in 2020 and the reductions in Overnight Policy Rate, banks will face higher earnings pressure this year. Under the prevailing weaknesses of the current economy and the uncertainties arising from the still evolving economic landscape, the Public Bank Group will focus on enhancing its core strengths in terms of risk management and productivity. The Group’s strong fundamental and resilience will position the Group in good stead to overcome any challenges, and to pursue further business growth when the economy recovers from the outbreak.”

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

* * * * * *

6

May 2020

FOR IMMEDIATE RELEASE

6 May 2020

Public Bank And Public Islamic Bank To Reduce Its Base Rate By 0.50%

Public Bank will reduce its Base Rate (BR) and Base Lending Rate (BLR) / Base Financing Rate (BFR) by 0.50% effective 12 May 2020, in line with Bank Negara Malaysia’s Overnight Policy Rate (OPR) cut by 50 basis points (bps) from 2.50% to 2.00% on 5 May 2020.

At the same time, Public Bank’s fixed deposit rates will also be correspondingly adjusted by 0.50%, effective on the same date.

The year to date cumulative reduction in Base Rate of 100 bps will assist in easing the borrowers’ burden and this is especially significant under the current challenging period brought about by the Covid-19 outbreak and the enforcement of the Movement Control Order necessary to stem the outbreak. This coupled with the government’s fiscal stimulus and BNM’s financial relief measures will lend support to the economy enabling the gradual recovery in the economic activities.

Public Bank is always committed to providing necessary financial assistance to its customers, particularly during this current period of the unprecedented Covid-19 outbreak.

* * * * * *

March 2020

27

Mar 2020

FOR IMMEDIATE RELEASE

27 March 2020

Public Bank Provides Non-Compounded Interest on Loans During Moratorium Period

Public Bank is providing a six-month moratorium for the monthly instalment payments of loans for all eligible individual and business customers, with no compounded interest during this deferment period from 1 April 2020 to 30 September 2020.

For Islamic financing, profit will continue to accrue on the outstanding principal amount. Such profit will not be compounded as well, in line with Shariah principles.

Public Bank Managing Director, Tan Sri Tay Ah Lek said, “Following Bank Negara Malaysia’s announcement on 25 March 2020, Public Bank further extends the relief assistance to its customers by not charging any compounding interest on the interest that accrues during the moratorium period.”

Tan Sri Tay further added, “With the escalating Covid-19 outbreak, Public Bank is very concerned about its impact on the nation and hopes this extended financial assistance will provide additional relief to its customers.”

Tan Sri Dato’ Sri Tay Ah Lek
Managing Director/Chief Executive Officer

* * * * * *

18

Mar 2020

FOR IMMEDIATE RELEASE

18 March 2020

Public Bank Provides Uninterrupted Services And Financial Relief Assistance

(1) Uninterrupted Services During The Movement Control Order Period

Public Bank and Public Islamic Bank are operating as usual during the period of the Government’s Movement Control Order (“MCO”) from 18 to 31 March 2020.

Public Bank Managing Director, Tan Sri Dato’ Sri Tay Ah Lek said today, “With directives under the MCO, and also to fulfill its obligation as a financial services provider, Public Bank continues to operate as usual. The Bank will ensure uninterrupted access to all its services nationwide by its customers during this containment period.”

Public Bank’s total branch network will remain open as per normal business hours throughout this period. Accesses to all the Bank’s services, such as self-service terminals, loan applications and deposit businesses, remittance and card services will remain uninterrupted. For the safety and health of its customers and employees, the Bank will practise crowd containment and management measures at its branches.

Public Bank’s online banking channels remain uninterrupted. For banking transactions, customers are advised to utilise the Bank’s electronic banking, mobile banking and other online services, as part of its social distancing measures to ensure effective containment of COVID-19 outbreak.

(2) Special Relief Facility For SME Customers

Public Bank is working concertedly with Bank Negara Malaysia in offering the Special Relief Facility to SME customers during this challenging period. The Bank has enhanced its internal processes to facilitate faster loan approval and disbursement to assist eligible SME customers to overcome their financial constraint amid this difficult situation. SMEs which intend to apply for the Special Relief Facility are advised to approach any Public Bank branches, or email to pbbsmesupport@publicbank.com.my, for financial advice and assistance.

(3) Relief Assistance Programme For Loan Repayment

For individual and business customers affected by the COVID-19 outbreak, Public Bank is offering immediate moratorium of up to six months for the monthly instalment payments of loans and financing. In addition, the Bank will continue to accommodate requests by the affected customers to restructure or reschedule their loans and financing, to assist in their cash-flow situation during this difficult time.

Tan Sri Tay said, “As the outbreak escalates, Public Bank will continue to be very active in providing financial relief measures to help all its customers to alleviate their financial difficulties.”

Contacts

Customers who have any enquiries or require assistance may contact the Bank’s toll-free number at 1800 22 5555.

* * * * * *

4

Mar 2020

FOR IMMEDIATE RELEASE

4 March 2020

Public Bank And Public Islamic Bank To Reduce Its Base Rate By 0.25%

Public Bank will reduce its Base Rate (BR) and Base Lending Rate (BLR) / Base Financing Rate (BFR) by 0.25% effective 6 March 2020, in line with Bank Negara Malaysia’s Overnight Policy Rate (OPR) cut by 25 basis points from 2.75% to 2.50% on 3 March 2020.

At the same time, Public Bank’s fixed deposit rates will also be correspondingly adjusted by 0.25%, effective on the same date.

Public Bank’s Base Rate reduction is timely to ease the borrowers’ burden and to spur the nation’s economic growth amidst the on-going economic challenges brought about by the Covid-19 outbreak. Public Bank will continue to proactively manage its assets and liabilities to ensure interest rates are priced responsibly at all times for the benefit of its customers.

* * * * * *

February 2020

26

Feb 2020

FOR IMMEDIATE RELEASE

26 February 2020

Public Bank Group Achieved Pre-Tax Profit Of RM7.13 Billion For 2019 And Declared Higher Second Interim Dividend Of 40 Sen

Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank, announced, “For the financial year of 2019, the Public Bank Group recorded a 1.9% growth in its operating revenue to RM22.45 billion. This had led to a higher pre-tax profit of RM7.13 billion, as compared to RM7.10 billion reported in the previous year. Net profit attributable to shareholders was recorded at RM5.51 billion. On a quarter-on-quarter basis, pre-tax profit and net profit attributable to shareholders grew by 3.4% and 3.2% respectively as compared to the third quarter of the year.”

Tan Sri Teh added, “2019 was a year with strong headwinds and increased challenges. Economic growth across developed and emerging countries had further moderated. The reduction in Overnight Policy Rate in May 2019 had placed further pressure on net interest margins which affected profitability of the domestic banking sector for the year. However, the Public Bank Group was still able to sustain stable profitability in 2019 through an above-industry growth in financing and deposit-taking businesses, a commendable growth of 8.4% in non-interest income and the strong asset quality.”

Tan Sri Teh further added, “Under the current challenging operating environment, the Public Bank Group is of the view that preserving strong asset quality and prudent cost management is the key to long term sustainability of earnings. Thus, the Group has been holding firm on its key principle of prudent credit management and continues to emphasise on productivity and operational efficiency. As a result, the Group continued to sustain the lowest gross impaired loan ratio of 0.5% and most efficient cost-to-income ratio of 34.4%, as compared to its domestic peers. Coupled with the Group’s stable profitability, the Group continued to achieve a resilient net return-on-equity of 13.6% in 2019.”

With this stable profitability performance and healthy balance sheet growth, Tan Sri Teh announced, “For the financial year of 2019, as the Public Bank Group continued to achieve solid financial strength, and also in appreciation of shareholders’ support, the Board of Directors is pleased to declare a higher second interim dividend of 40 sen. Together with the first interim dividend of 33 sen, the Group’s full year dividend for 2019 would amount to 73 sen, as compared to 69 sen paid in 2018. This would translate into a total of RM2.83 billion which represents 51.4% payout of the Group’s net profit for 2019. The second interim dividend will be paid on 20 March 2020, based on the dividend entitlement date of 12 March 2020.”

Healthy Growth in Loans and Deposits

The Public Bank Group continued to achieve healthy growth performance in its core business of financing. In 2019, the Group achieved a 4.1% growth in total loans. This was mainly driven by domestic loan growth of 4.5%, which was higher than the domestic banking system’s loan growth of 3.9%. This was attributable to the Group’s competitive market position in residential property financing, commercial property financing and hire purchase financing, with the Group continuing to capture leading market share in the domestic banking industry, which stood at 19.9%, 35.0% and 29.4% respectively as at the end of 2019.

On deposit-taking, the Public Bank Group achieved a 4.2% growth in total customer deposits. On domestic front, the Group achieved a stronger growth of 4.7% in total customer deposits, which was also higher than the domestic banking system’s deposit growth of 2.9%.

Tan Sri Teh said, “With the healthy loan and deposit growth during the year, the Group had continued to sustain a healthy funding position as reflected in its gross loan to fund and equity ratio of 79.2%.”

Continued Growth in Non-interest Income

For the financial year of 2019, the Public Bank Group continued to achieve a commendable growth of 8.4% in non-interest income, led by higher investment income.

Tan Sri Teh highlighted that, “Public Mutual, Public Bank’s wholly-owned unit trust subsidiary, remained the major contributor to the Public Bank Group’s non-interest income. In 2019, Public Mutual sustained its industry leading position, with retail market share of 35.0%. This is on the back of a continued growth of 10.0% in its total net asset value under management to RM86.6 billion as at the end of 2019, with a total of 156 unit trust funds being managed.”

Leading Cost Efficiency

In 2019, the Public Bank Group sustained its competitive strength in cost management, with its cost-to-income ratio at 34.4%, which remained the most efficient among peers. This was significantly better than the domestic banking system’s cost-to-income ratio of 44.6%.

Tan Sri Teh reiterated, “In line with the overall trend in the domestic banking landscape, the Public Bank Group faced rising cost pressure arising from investments in human capital, banking technology, compliance with regulations and building capabilities for future growth. However, the Group had maintained its long term practice of prudent cost management, which continued to efficiently and effectively support the Group’s organisational growth.”

Sustaining Superior Asset Quality

As at the end of 2019, the Public Bank Group’s gross impaired loans ratio remained low and stable at 0.5%, which continued to be well below the domestic banking system’s gross impaired loans ratio of 1.5%.

Tan Sri Teh highlighted, “When the banking industry is concerned about the uptick in impaired loans amid the increasing economic challenges, the Public Bank Group continued to lead by its strong asset quality, despite its growing loan portfolio. Notwithstanding this, the Group had maintained a high loan loss coverage ratio of 124.1%, which was higher than the domestic banking industry’s loan loss coverage ratio of 89.6%. Including the RM2.0 billion regulatory reserves that the Group had set aside, the Group’s loan loss coverage ratio was higher at 249.8%.”

Overseas Operations

The Public Bank Group’s overseas operations contributed 10.4% to the Group’s pre-tax profit in 2019. This was largely driven by the Group’s operations in Indo-China and Hong Kong.

Tan Sri Teh added, “Cambodian Public Bank Plc (“Campu Bank”) continued to sustain its position as the largest foreign bank in Cambodia, and reported a higher profit of USD82 million in 2019. The Group’s operation in Vietnam, Public Bank Vietnam Limited (“PBVN”), had also delivered commendable performance. In 2019, PBVN achieved 25.8% loan growth and posted 48.2% profit growth to VND387 billion. The Group is in the process of expanding its branch network and strengthening its sales force for its Vietnam operation. In addition to the existing branch network of 20 branches, PBVN has obtained regulatory approval to open another six more branches in 2020, with a target to reach 40 branches in the medium term.”

Healthy Capital Position

The Public Bank Group’s capital position remained healthy. The Group’s common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stands at 13.5%, 13.5% and 16.8% respectively as at the end of 2019, after deducting the second interim dividend to be paid.

Tan Sri Teh commented, “The Public Bank Group places great focus on effective capital management. The Group adopts a balanced strategy in maintaining sufficient capital buffer to meet regulatory requirement, whilst ensuring capital efficiency in generating optimum return to its shareholders.”

Group’s Prospect

For 2020, the Malaysian economy is expected to continue to be driven by domestic demand, underpinned by the stable labour market and the ongoing fiscal investments. However, lingering uncertainties in the macro environment is likely to continue into 2020, with the banking sector bracing for another year of challenges.

Tan Sri Teh concluded, “With the expected uncertainties lying ahead, it is imperative to remain vigilant against multiple risks stemming from the challenging economic environment. However, the Group will remain cautiously optimistic, as its strong market position and sound foundation, coupled with a growing domestic economy, will continue to support and drive business growth in 2020. The Group will remain focused on organic growth strategy and continue to sharpen its competitive capabilities to strengthen resilience in its core business in retail and commercial banking. Sustaining stable profitability and preserving strong asset quality will remain as the Group’s strategic focus going forward.”

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

* * * * * *

11

Feb 2020

FOR IMMEDIATE RELEASE

11 February 2020

Malaysia Airlines Berhad Partners with Public Bank to Offer Customers Payment Option via FPX

Malaysia Airlines Berhad entered into a partnership with Public Bank Berhad (PBB) to accept payments for online ticket purchases using FPX which is operated by Payments Network Malaysia Sdn Bhd (PayNet). FPX is offering a convenient and secure online payment solution for customers. The airline’s customers can now purchase their flight tickets, using funds in their current, savings and credit card accounts maintained with Public Bank, Public Islamic Bank and 29 other participating FPX banks in Malaysia.

The partnership was made official at a signing ceremony held at MAB Academy, Kelana Jaya on 3 February 2020.

The event was attended by Malaysia Airlines’ Group Chief Executive Officer, Captain Izham Ismail, Group Chief Marketing and Customer Experience Officer, Ms. Lau Yin May, Tan Sri Dato’ Sri Tay Ah Lek, Chief Executive Officer from Public Bank Berhad and Mr. Peter Schiesser, Group Chief Executive Officer of PayNet.

Speaking at the event, Malaysia Airlines’ Group Chief Marketing and Customer Experience Officer Ms. Lau Yin May said, “Malaysia Airlines is delighted to partner with Public Bank and PayNet to offer customers a convenient way to purchase their flight tickets online and on our mobile app through FPX. This partnership proves our commitment towards improving our customer experience with the introduction of convenient payment options. Also, customers who opt to pay with FPX will not pay any service charges.”

This partnership is in line with Bank Negara Malaysia’s initiative to migrate manual payments to ePayments.

“Through this synergistic tie-up, Public Bank is committed to support Malaysia Airlines Berhad to facilitate its travellers in booking their airline tickets in a seamless process and on real-time basis,” said Tan Sri Dato’ Sri Tay Ah Lek, Chief Executive Officer from Public Bank Berhad. He added, “Public Bank was the first bank in the country to launch the Malaysia’s National QR Standard known as Duitnow QR with PayNet. The Bank is on track to bring more innovative payment solutions to our retail consumers and business clients.”

PayNet Group CEO Mr. Peter Schiesser said FPX processed 236 million transactions in 2019, while online merchants collected payments totalling RM117 billion via FPX, making it Malaysia’s top real-time online payment gateway for e-commerce sites.

Malaysia Airlines Berhad is running the ‘Travel and Win with FPX’ contest from 30 January to 29 February 2020 where customers will be able to win a pair of flight tickets on Malaysia Airlines’ Business Suite to London plus a 7 days/6 nights hotel stay by MHholidays alongside 80,000 Enrich Miles. Other prizes include a pair of Economy class tickets and hotel stays in Sydney and Bali plus miles. Customers will also stand a chance to win up to 11,000 Enrich Miles.

Enrich, Malaysia Airlines’ loyalty programme, is also giving away two daily prizes to the highest daily spender.

To be eligible for the contest, customers will need a minimum spend of RM100 to purchase flight tickets, or add-ons on Malaysia Airlines’ website and app via the FPX gateway. In addition, customers will be required to sign up as an Enrich member to qualify.

This contest is open to all Malaysian or Malaysian residents who have local bank accounts and terms & conditions apply. For more information on the contest, please visit www.malaysiaairlines.com/my/en.html.

(From left) Payment Network Malaysia Sdn Bhd's Group Chief Executive Officer, Mr. Peter Schiesser, Public Bank's Deputy Chief Executive Officer, Dato' Chang Kat Kiam, Chief Executive Officer/Managing Director, Tan Sri Dato' Sri Tay Ah Lek, Group Chief Executive Officer of Malaysia Airlines Berhad, Captain Izham Ismail, Group Chief Marketing and Customer Experience Officer, Ms. Lau Yin May and air crew from Malaysia Airlines Berhad at the signing ceremony event.

* * * * * *

10

Feb 2020

FOR IMMEDIATE RELEASE

10 February 2020

Public Bank And Public Islamic Bank Activate Relief Assistance Programme For Customers Affected By The 2019 Novel Coronavirus Outbreak

Public Bank and Public Islamic Bank are activating the Relief Assistance Programme for its customers who are affected by the current outbreak of novel coronavirus (2019-nCoV).

Public Bank Managing Director, Tan Sri Dato’ Sri Tay Ah Lek said today, “Public Bank continues to be considerate towards customers who face short term financial constraints due to the unexpected situation. As concerns about the 2019-nCoV escalate and are expected to affect industries and businesses, the Bank hopes that the Relief Assistance Programme would help to alleviate difficulties faced by its customers.”

Relief Assistance for Affected Customers

With immediate effect, for the affected individual and business customers, Public Bank Group is offering moratorium of up to six months for the monthly instalment payments of loans and financing. The Bank will also accommodate requests by the affected customers to restructure or reschedule their loans and financing to assist in their cash-flow situation during this difficult time.

Contacts

Affected customers who require the Relief Assistance Programme are advised to go to the Public Bank/Public Islamic Bank branch where they maintain their accounts or call the Bank’s toll-free number at 1800 22 5555.

“Public Bank stands ready to support customers through financial hard times. The Bank will continue to monitor the development of the outbreak and extend its further assistance should the need arises.” Tan Sri Tay added.

* * * * * *

January 2020

23

Jan 2020

FOR IMMEDIATE RELEASE

23 January 2020

Public Bank And Public Islamic Bank To Reduce Its Base Rate By 0.25%

Public Bank will reduce its Base Rate (BR) and Base Lending Rate (BLR) / Base Financing Rate (BFR) by 0.25% effective 28 January 2020, in line with the Overnight Policy Rate (OPR) cut by 25 basis points from 3.00% to 2.75% on 22 January 2020.

At the same time, the fixed deposit rates will also be correspondingly adjusted by 0.25%, effective on the same date.

Given the current challenging operating environment, Public Bank’s Base Rate reduction is timely to ease the burden of the borrowers and helps stimulate the nation’s economic growth. Public Bank will continue to proactively manage its assets and liabilities to ensure interest rates are priced responsibly at all times for the benefit of its customers.

* * * * * *

Media Release