KUALA LUMPUR: Public Bank Bhd’s net profit increased six per cent to RM1.33 billion in the second quarter (Q2) ended June 30, 2017 from RM1.26 billion recorded a year ago.
In a filing to Bursa Malaysia yesterday, the company said the higher earnings was mainly due to higher net interest income, higher net fee and commission income, lower loan impairment allowance and higher income from Islamic banking business.
“The Group’s profit was mainly supported by continued loans and customer deposits growth coupled with stable asset quality,” it said.
Its revenue in Q2 increased 3.8 per cent to RM5.17 billion from RM4.98 billion.
Public Bank founder and chairman Tan Sri Teh Hong Piow said the Group’s continuous positive momentum in sustaining profitability growth is evident of its clear and focused business strategy and prudent credit culture.
“The Public Bank Group’s sustained profitability continued to be driven by the expansion in its loan and deposit portfolio, which led to a growth of 8.3 per cent in net interest income,” he said.
Teh said with the improved profitability, the Public Bank Group achieved a net return on equity of 15.3 per cent.
“The Group’s financial strength was also attributed to its strong asset quality and efficient cost management, as reflected in its gross impaired loan ratio of 0.5 per cent and cost-to-income ratio of 33.8 per cent as at the end of June 2017,” he said.
For the six month period, Public Bank’s net profit increased 3.8 per cent to RM2.58 billion from RM2.49 billion.
Its revenue in the same period increased 2.1 per cent to RM10.19 billion from RM9.99 billion recorded in the same period a year ago.
In view of the Group’s favourable performance, Teh said the board has declared a first interim dividend of 27 sen per share, resulting in a total dividend payout of RM1.04 billion.
The first interim dividend will be paid on August 17, 2017.