Public Bank third quarter net profit rises 14.8pc

KUALA LUMPUR: Public Bank Bhd's net profit for the third quarter ended September 30 increased 14.8 per cent to RM898.7 million, up from RM782.7 million a year ago.
This was driven by strong loans and deposits growth and stable asset quality, which resulted in higher net interest income and lower loan impairment charges, the bank said.

"The outlook of the Malaysian banking sector, in which the group largely operates in, continues to be stable and supportive of growth.

"We continue to see the group's business performance to be in line with expectations and on track in meeting the key business targets for 2011," Public Bank's founder and chairman Tan Sri Teh Hong Piow said in a statement yesterday.

Revenue for the same period increased by 13.7 per cent to RM3.27 billion from RM2.87 billion, while earnings per share were 25.66 sen, compared with 22.35 sen a year ago.

"The retail banking business is projected to grow at a moderate pace amid stiff competition and the introduction of regulatory measures to address rising household debt levels," Teh said.

For the nine months ended September 30, 2011, its net profit grew 18.4 per cent to RM2.6 billion from RM2.2 billion, while revenue rose 16.9 per cent to RM9.4 billion from RM8.1 billion previously.

"The Public Bank group's sound financial results are a validation of its effective organic growth strategies and sustainable business model.

"The group net return on equity of 26.7 per cent remains the highest among Malaysian banks."

The net profit growth and net return on equity were driven by strong revenue growth, continued disciplined cost management with low cost-to-income ratio of 30 per cent, and superior asset quality with improvement in credit charges by 15 per cent.

Public Bank reaffirmed its number one position in domestic lending for residential mortgages, commercial property financing and passenger vehicles financing.

Teh said the bank's balance sheet growth indicators remained healthy with gross loans at RM172.7 billion, up 13.8 per cent on an annualised basis.

Domestic loan growth, meanwhile, remained strong with an annualised growth rate of 14.1 per cent.

Total customer deposits grew by an annualised rate of 12.7 per cent to RM193.7 billion, while domestic customer deposits grew at a stronger annualised growth rate of 13.8 per cent.

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