Public Bank Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow announced the financial institutions’ latest 9-month report with the bank posting a pretax profit of RM5.56 billion and net profit of RM4.28 billion, according to Tan Sri Teh the strong showing was mainly supported by its core business of lending and deposit-taking.
Despite a steady figure, for the third quarter of 2021, the Group’s net profit declined by 1.7% to RM1.36 billion compared to RM1.38 billion in the second quarter of 2021. This was attributed to lockdown measures imposed by the government and a challenging period endured by the country.
Tan Sri Teh commented, “During these trying times, the Group had undertaken multiple proactive initiatives in its business strategies and placed greater emphasis on risk management and productivity. These efforts enabled the Group to continue to demonstrate resilience in its performance by registering a net return-on-equity of
12.4% and an efficient cost-to-income ratio of 31.7% during the nine months ended September 2021.”
As of the end of September 2021, Public Bank’s total loans recorded an annualised growth of 3.0% to RM353.5 billion. Domestic loans grew at an annualised rate of 2.8% to RM330.5 billion, the stringent containment measures continued to weigh on consumer sentiments, leading to the slower growth in loans.
On deposit-taking, the Group’s total customer deposits grew at an annualised rate of 4.8% to RM378.9 billion, supported mainly by its low-cost current and savings deposits which grew at an annualised rate of 12.2%. Domestically, the total customer deposit grew at an annualised rate of 5.1% to RM350.5 billion.
Tan Sri Teh said, “The Group was able to achieve continued loans and deposit growth, albeit at a moderate pace. As at end-September 2021, the Group’s funding position remained stable with a gross loan to fund and an equity ratio of 79.7%.”
As for the outlook, the bank remains steadfast in its efforts to strengthen its balance sheet, uphold its strong asset quality as well as enhance cost efficiencies further. While embracing the changes stemming from the pandemic, the Group will continue its pursuit of digital transformation and product innovation to strengthen long-term business growth.
Tan Sri Teh concluded, “With its resilient fundamentals, the Group remains well placed to navigate any challenges ahead and spur business growth as the country moves toward post-pandemic recovery.”
