Public Bank's Q3 profit down 1.5% to RM1.38b

PETALING JAYA: Public Bank Bhd’s net profit slipped 1.5% to RM1.38 billion for the third quarter ended September 30, 2018 compared with RM1.4 billion in the previous corresponding period, due to the absence of a one-off capital gain on investment of RM43 million.
Excluding the one-off gain recorded in the same quarter last year, its net profit would have increased 1.6%, driven by lower loan impairment allowance, higher income from Islamic banking business and higher net interest income.
The bank’s revenue for the quarter under review grew 5.9% to RM5.62 billion from RM5.31 billion.
Its nine-month net profit expanded 5% to RM4.19 billion from RM3.98 billion, while revenue was up 5.8% to RM16.41 billion from RM15.51 billion.
Public Bank’s total gross loans rose by an annualised rate of 4.4% to RM314.5 billion for the first nine months of 2018. Domestic loans also increased 4.4% to RM291.6 billion.
Total customer deposits grew at an annualised rate of 6.5% to RM334.9 billion, with domestic deposits rising 6.3% to RM307.0 billion.
As at end-September 2018, the bank registered gross impaired loans ratio of 0.5% and loan loss coverage of 110.2%. Including the regulatory reserves of RM2.0 billion, the loan loss coverage was at 235.8%.
Its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at 12.6%, 13.2% and 15.8%, respectively.
Public Bank’s overseas operations contributed 9.5% of the group’s overall pre-tax profit. Public Financial Holdings Ltd Group in Hong Kong and Cambodian Public Bank Plc remained the largest contributors to overseas operations profit.
Looking ahead, Public Bank founder and chairman Tan Sri Teh Hong Piow said taking cognisance of the challenges in the operating environment, the 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.”
At the noon break, the stock fell 6 sen or 0.2% to RM24.82 on 1.66 million shares done.