Public Bank Q2 net profit up 13% on higher income

PETALING JAYA: Public Bank Bhd's net profit for the second quarter ended June 30, 2015 rose 13.3% to RM1.2 billion from RM1.06 billion a year ago, mainly due to higher net interest income, higher net fee and commission income and higher investment income.
It posted revenue of RM4.74 billion, which is 14.7% higher compared with RM4.06 billion in the previous year's corresponding quarter.
For the six months period, Public Bank's net profit increased 14.2% to RM2.37 billion from RM2.07 billion a year ago, mainly attributed to the healthy growth in loans and deposits, and stable asset quality. Gains arising from foreign exchange fluctuation in respect of the group's foreign operations have also partially contributed to the profit growth for the period.
It saw revenue jump 16.6% to RM9.34 billion compared with RM8.01 billion in the first six months of last year.
Public Bank founder and chairman Tan Sri Dr Teh Hong Piow (pix) said the group has continued to perform well in the first half of 2015, recording a healthy loan growth of 11.2% on an annualised basis to RM258.8 billion as at the end of June 2015.
Its customer deposits recorded an annualised growth of 13.6% to RM295.3 billion as at the end of June 2015 and the group maintained a stable and healthy loan-to-deposit ratio of 87.0% as at June 30, 2015.
"The Public Bank group continues to rank highly amongst its banking peers in Malaysia in term of profitability and cost efficiency with the highest net return on equity of 17.2%, while maintaining the lowest gross impaired loan ratio of 0.54% and cost-to-income ratio of 31.1%," said Teh in a statement yesterday.
The group's retail lending portfolio collectively accounted for 86% of its total loan, comprising mainly loans to SME, loans for the financing of residential properties and purchase of passenger vehicles.
The board of directors has declared a first interim dividend of 24 sen, which will result in a total dividend payout of RM926.8 million. The first interim dividend will be paid on Aug 24, 2015 based on the dividend entitlement date of Aug 14, 2015.
On its prospects, Teh said steady domestic demand will continue to be supportive of the banking sector and drives growth in the banking business. However, banks are expected to continue to face with net interest margins pressure due to the intense market competition.
"The group will continue to focus on its core retail banking and financing business, whilst maintaining its prudent credit policies, as well as upholding strong corporate governance," he said.