Public Bank Q4 net profit falls 5% to RM1.6 billion
Published on: Wednesday, February 28, 2024
By: Bernama
Public Bank has declared a second interim dividend of 10 sen per share, making the total FY2023 dividend to 19 sen per share.
PETALING JAYA: Public Bank Bhd’s (PBB) net profit fell 5.3% to RM1.62 billion in the fourth quarter ended Dec 31, 2023 (Q4 FY 2023) from RM1.71 billion a year earlier, while revenue was 8.1% higher at RM6.55 billion against RM6.06 billion previously.
It stated that it faced challenges from the high allowance for loan impairment, increased operating expenses, and a decline in net interest income.
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Meanwhile, for the full year ended Dec 31 (FY2023), PBB’s net profit climbed 8.7% to RM6.65 billion from RM6.12 billion a year ago, supported by healthy loans and customer deposits growth.
In addition, its revenue in FY2023 jumped 18.62% to RM25.42 billion versus RM21.43 billion previously.
In a filing with Bursa Malaysia today, PBB said its gross loans grew by RM22.1 billion or 5.9% to RM399 billion in FY2023 as compared to RM376.9 billion a year ago, mainly contributed by growth in mortgage financing, hire purchase financing, commercial property financing and other consumer financing.
“Total deposits from customers increased by 4.6% or RM18.2 billion to RM412.9 billion as at the end of FY2023.
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“The group’s gross impaired loan ratio remained relatively low at 0.59% as at Dec 31, 2023, as compared to the average industry’s gross impaired loan ratio of 1.65%,” it said.
Managing director and CEO Tay Ah Lek said following the overall good performance in FY2023, the board of directors declared a second interim dividend of 10 sen per share, making the total dividend amount to 19 sen per share for FY2023.
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“This is a total dividend payment of RM3.69 billion, which is 55.5% of the PBB group’s FY2023 net profit,” he said.
Moving forward, Tay added that the group will continue to focus on expanding its core business of retail and commercial banking while strengthening its commitment to environmental, social and governance.
“The group will ensure it remains relevant and resilient as it continues to serve the best interest of all its stakeholders,” he added.
As at 3.34pm, Public Bank’s share price was down by 1 sen or 0.22% at RM4.46, giving it a market capitalisation of RM86.57 billion.
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