Public Bank's Q2 net profit edges up 3.2%

PETALING JAYA: Public Bank Bhd's net profit rose 3.2% to RM1.06 billion in the second quarter ended June 30, 2014, from RM1.02 billion in the same period of 2013, driven by higher net interest income.
Revenue increased 6.7% to RM4.06 billion from RM3.8 billion a year earlier.
Public Bank has declared a 23 sen first interim dividend, which will result in a total dividend payout of RM886 million.
In a filing to Bursa Malaysia, Public Bank said the improved earnings was due mainly to higher net interest income, higher net fee and commission income and lower loan impairment allowances.
For the six months period ended June 30, 2014, the bank registered an increase of 4% in net profit to RM2.07 billion compared to RM1.99 billion a year ago, exceeding RM2 billion mark for the first time.
The founder and chairman of Public Bank, Tan Sri Teh Hong Piow, said the bank continued to maintain traction in its loan growth with an annualised growth rate of 10% in the first half of 2014.
He said this was driven by its commendable annualised domestic loan growth of 10.6%, which outpaced the domestic banking industry's annualised loan growth rate of 6.9%.
Teh said its loan growth was mainly supported by lending to the retail banking segment, comprising extension of credit mainly to small and medium enterprises as well as for purchasing of residential properties and passenger vehicles.
As at June 30, 2014, its retail loan portfolio collectively accounted for 87% of its total loans, while the lending to small and medium enterprises recorded a strong annualised growth of 23% in the first half of 2014.
Teh said the bank remains focused on various initiatives to drive the growth of its non-interest income in order to sustain its high return on equity. Its non-interest income improved by 6.9% in the first half of 2014 as compared to the corresponding period in 2013 led by higher income from its unit trust business.
Moving forward, Teh said the bank will continue to leverage on its strong brand and its wide and efficient branch network as well as its excellent customer service to support long term sustainable growth.
"Our strategies for the Public Bank group remain unchanged. The group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance," he said.
"With the expectation that the Malaysian economy will remain on a steady growth path of between 4.5% and 5.5%, supported by improving external sector amid moderation in the domestic demand, the Public Bank group is expected to maintain its earnings momentum for the rest of 2014," he added.