Public Bank's first quarter earnings up 12.6% to RM1.41 billion

PETALING JAYA: Public Bank Bhd’s net profit jumped 12.6% to RM1.41 billion for the first quarter (Q1) ended March 31, 2018 against RM1.25 billion in the previous corresponding period, driven by the 4% and 15.6% growth in net interest income and non-interest income, respectively.
Revenue was up 6.4% to RM5.35 billion from RM5.03 billion.
The bank said in a filing with the stock exchange, its total gross loans grew at an annualised rate of 3% in Q1, with domestic loans growing faster at 5%.
Its gross impaired loans ratio was stable at 0.5% as at end-March against the 1.6% on the Malaysian banking industry.
Despite the implementation of MFRS 9 on Jan 1, 2018, Public Bank said, it did not result in any adverse impact to its capital position as the group has set aside large regulatory reserves.
Its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at 12.2%, 12.8% and 15.8%, respectively as at the end-March 2018.
It also maintained a healthy loan loss coverage ratio of 125.2%. Including additional regulatory reserves set aside of RM2 billion, the group’s loan loss coverage ratio would be 261.0%.
Looking ahead, Public Bank founder and chairman Tan Sri Teh Hong Piow said the group’s banking business will be supported by favourable domestic demand and resilient domestic economic growth.
“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,” he added.
On Bursa Malaysia today, Public Bank was up 20 sen or 0.8% to close at RM24 on volume of 5.5 million shares.