KUALA LUMPUR: Public Bank Bhd’s net profit increased 0.2 per cent in the fourth quarter (Q4) ended December 31, 2017 to RM1.49 billion from RM1.48 billion recorded in the same quarter previously.
In a filing to Bursa Malaysia today, the country’s third largest financial group by asset said the improved net profit was mainly due to higher net interest income, higher other operating income, higher net fee and commission income and higher income from Islamic banking business.
Its revenue rose 5.2 per cent to RM5.35 billion from RM5.08 billion.
For the full-year, Public Bank registered a 5.1 per cent increase in net profit to RM5.47 billion from RM5.21 billion previously, while revenue grew 3.8 per cent to RM20.86 billion from RM20.1 billion.
“With the resilient performance in 2017, the Public Bank Group continued to achieve a high net return on equity of 15.8 per cent while maintaining its low gross impaired loan ratio of 0.5 per cent and an efficient cost-to-income ratio of 31.9 per cent.
“The results are a validation of the group’s effective organic growth strategies and sustainable business model. We have benefited from our disciplined execution of our growth strategies whilst preserving prudent risk management practices to ensure sustainable and stable returns,” Public Bank founder and chairman Tan Sri Dr Teh Hong Piow said in a statement.
Public Bank sustained a steady loan growth momentum at a rate of 3.6 per cent last year.
Domestic lending business grew by 4.6 per cent over the same period, outpacing the domestic banking industry’s loan growth rate of 4.1 per cent.
“The Public Bank Group’s loan growth was mainly attributed to the lending growth in its retail consumer and commercial banking segment, comprising financing for the purchase of residential properties and extension of credits to small and medium enterprises,” said Teh.
The group’s total customer deposits grew by three per cent, mainly attributed to the steady inflow of core deposit comprising fixed deposits, low-cost savings and current accounts, which grew by 4.5 per cent.
Teh said it is confident that its solid business model building on organic growth strategy in the core retail banking and financing business, coupled with its prudent credit policies, as well as strong risk management practices will continue to be the key strengths for it to strive for higher growth and sustainable profitability in 2018.
“Facing the highly competitive banking landscape, the group’s key priorities are to accelerate business innovation and pursue operational efficiency in order to deliver the group’s commitment to excellence to all its stakeholders,” he said.
Public Bank declared a second interim dividend of 34 sen, taking full year dividend for 2017 to 61 sen.
The total dividend paid and payable for 2017 amounted to RM2.36 billion and represents a total payout of 43.1 per cent of the group’s net profit for 2017.