KUALA LUMPUR: Public Bank Group Bhd is focused on advancing business expansion in its key business divisions, upholding responsible credit standards, and further enhancing cost-effectiveness.
Founder Tan Sri Dr Teh Hong Piow said Malaysia's transition to the Covid-19 endemic phase would further stimulate key economic activities and support the banking sector's growth.
Teh said that whilst the Public Bank Group is cautiously optimistic about the economic outlook, the bank remains mindful of the various domestic and external uncertainties which could affect the economy.
"We will continue to be vigilant and agile, balancing growth and risks amid the changing business environment to ensure long term sustainability.
"Public Bank Group's strong balance sheet and solid asset quality will provide an adequate buffer for the group to weather potential risks while it seizes opportunities ahead," he said in conjunction with the bank's 56th annual general meeting (AGM).
On the group's performances, Teh said that despite the various challenges faced in 2021 due to the Covid-19 pandemic, the Public Bank Group has remained resilient.
He said the bank recorded a pre-tax and net profit of RM7.37 billion and RM5.66 billion, respectively, in 2021, compared with RM6.29 billion and RM4.87 billion in 2020.
"The higher profit was mainly due to the low base effect in 2020 and the positive loans and deposits growth achieved in 2021.
"Earnings per share increased from 25.1 sen in 2020 to 29.1 sen in 2021," he said.
Meanwhile, Teh said that in 2021, the Public Bank Group would continue to outperform its banking peers.
The group is the most cost-efficient bank in Malaysia, with the lowest cost-to-income ratio of 31.6 per cent compared to the industry's average cost-to-income ratio of 48.1 per cent.
In terms of asset quality, Teh said the group remains the best amongst all Malaysian banks, with a gross impaired loan ratio of 0.3 per cent, compared to the industry's average gross impaired loan ratio of 1.4 per cent.
"Despite the challenging economic conditions in 2021, the Public Bank Group maintained a stable dividend payout. Accordingly, Public Bank Group paid a second interim dividend of 7.7 sen per share on March 22, 2022.
"Together with the first interim dividend of 7.5 sen paid in September 2021, shareholders would have received a total dividend of 15.2 sen for 2021, an increase from 13 sen for 2020," he added.