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Public Bank records lower pre-tax profit in first quarter
Published on: Friday, April 21, 2017

Kuala Lumpur: Public Bank Bhd's pre-tax profit eased to RM1.63 billion in the first quarter ended March 31, 2017, against RM1.65 billion recorded in the same period last year.

Revenue for the quarter grew to RM5.03 billion from RM5.01 billion a year earlier, said the bank in a filing to Bursa Malaysia Thursday.

Public Bank Founder and Chairman Tan Sri Dr Teh Hong Piow said the group continued to sustain a satisfactory set of financial performance indicators as reflected in its net return on equity of 14.9 per cent, gross impaired loans ratio of 0.5 per cent and an efficient cost-to-income ratio of 34.3 per cent.

In the first quarter of 2017, total gross loans of the group increased at an annualised rate of 3.6 per cent, with domestic loans growing faster at an annualised rate of 4.7 per cent, led by the financing of residential properties and commercial lending to small and medium enterprises.

"In the deposit-taking business, the group achieved an annualised 8.1 per cent growth in total customer deposits for the first quarter of 2017, underpinning a stable base for funding position.

"On the domestic front, the group's total deposits grew at an annualised rate of 7.9 per cent," said Teh.

He added that the group's unit trust business, through Public Mutual, recorded a double-digit growth of 11.1 per cent in pretax profit for the first quarter of 2017, compared with the previous corresponding period. "Public Mutual also continued to maintain its strong market position, capturing 45.8 per cent of the retail market share of the private unit trust industry.

"As at end-March, Public Mutual has 135 unit trust funds under its management with a total net asset value of RM74.4 billion," said Teh.

Public Bank's cost-to-income ratio increased to 34.3 per cent from 32.3 per cent in 2016, but still remained efficient compared with the banking industry's cost-to-income ratio of 45.8 per cent, he added.

Moving forward, he said the group would continue to take proactive efforts to ensure it remained on the trajectory towards meeting its 2017 growth targets. – Bernama

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