KUALA LUMPUR: Public Bank Bhd’s net profit increased 12.6 per cent in the first quarter (Q1) ended March 31, 2018 to RM1.41 billion from RM1.25 billion.
The country’s third largest bank by assets said this was mainly due to higher net interest income, higher net fee and commission income, higher income from Islamic banking business and higher investment income and other operating income recorded during the quarter.
Public Bank founder and chairman Tan Sri Dr Teh Hong Piow said this resulted in a continued favourable set of financial performance indicators, as reflected in the group’s net return on equity of 15.2 per cent, gross impaired loans ratio of 0.5 per cent and cost-to-income ratio of 32.6 per cent, which remained the best in the domestic banking industry.
Its gross loans grew by RM10.2 billion or 3.4 per cent to RM306.8 billion as at March 31 compared to RM296.6 billion as at March 31 last year, Public Bank said in its filing to Bursa Malaysia today.
This was mainly driven by growth in property financing, lending to small and medium enterprises and corporate lending.
The bank said total deposits from customers increased 3.1 per cent or RM9.6 billion to RM325.9 billion during the same period.
Its gross impaired loan ratio remained stable at 0.5 per cent, attributed to its consistent adoption of stringent credit underwriting and proactive recovery processes.
The bank’s revenue in the same quarter increased 6.4 per cent to RM5.35 billion from RM5.03 billion.
Teh said the Malaysian banking sector had long benefited from the stable economic conditions and prudent regulatory environment over the years.
“Tapping on this stable and conducive environment, the Public Bank Group has been able to stay resilient to serve its customers.
“In 2018, with domestic demand expected to remain favourable, the resilient growth in the domestic economy will continue to be a strong support to the group’s banking business,” he said.
Public Bank maintained 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,” Teh said.
“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.