KUALA LUMPUR: Public Bank Bhd's net profit slipped 3.5 per cent year-on-year to RM1.65 billion in the first quarter ended March 31, 2024 (Q1 2024) versus RM1.71 billion a year ago.
This was mainly due to the non-recurrence of the positive impact of interest rate hikes in the previous corresponding period.
Group revenue for the quarter under review, however, rose 11 per cent to RM6.79 billion from RM6.12 billion in the same period last year.
Managing director and chief executive officer Tan Seri Dr. Tay Ah Lek said the group continued to sustain a commendable net return on equity of 12.3 per cent, an efficient cost-to-income ratio of 35.4 per cent and a stable asset quality with gross impaired loans ratio of 0.62 per cent.
"Against this backdrop, the Public Bank Group will remain vigilant in its business approach and will continue to maintain its prudent risk profile to weather ongoing risks.
"Tapping on the improved economic outlook, the group will continue to take a proactive approach to embracing growth opportunities," Tay said in a statement.
Loan growth came in at an annualised rate of 6.3 per cent.
The bank's domestic loans grew by an annualised rate of 5.9 per cent to RM378.2 billion, outpacing the Malaysian banking industry's annualised loan growth rate of 5.3 per cent.
Domestic residential properties financing, hire purchase financing and commercial properties financing grew by an annualised rate of 5.6 per cent, 17.3 per cent and 4.0 per cent respectively.
The group maintained stable liquidity with gross loan to fund and equity ratio of 82.0 per cent as at the end of March 2024.
The lender's gross impaired loans ratio stood at 0.62 per cent.
Domestic operations which accounted for over 93 per cent of the group's total loans, maintained a low gross impaired loans ratio of 0.41 per cent.
This was significantly lower than the domestic banking industry's average gross impaired loans ratio of 1.62 per cent.
Non-interest income increased marginally by 0.5 per cent to RM649.6 million as compared with the corresponding period last year.
Comparing against the preceding quarter ended Dec 31, 2023, non-interest income increased by 7.9 per cent, led by higher income from the group's unit trust and stockbroking businesses.
In Q1 2024, the group remained well-capitalised with common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 14.5 per cent, 14.5 per cent and 17.4 per cent respectively.
The liquidity coverage ratio remained comfortably above the regulatory requirement, standing at a healthy level of 136.5 per cent.
"The group will also continue to pursue digital transformation and further step up its ESG efforts to remain relevant in today's dynamic business environment," Tay said.