Public Bank Group recorded a pre-tax profit of RM7.37 billion and net profit of RM5.66 billion in 2021, compared to RM6.29 billion and RM4.87 billion respectively in 2020. Chairman, Tan Sri Dr Teh Hong Piow commented, “Public Bank Group’s sound fundamentals and business strengths in its core lending and deposit business continued to support the Group’s financial performance.”
The improved profit growth in 2021 was also attributed to the low base effect in 2020 when the COVID-19 unprecedentedly caused public health crisis which led to the closure of most economic activities. However, the group claimed in 2021, the operating environment remained extremely challenging due to the prolonged COVID-19 pandemic and the emergence of new variants. Rising inflationary pressure and the unexpected flash floods in several states in Malaysia at the year end had posed further headwinds to the economic condition. These prevailing economic challenges continued to weigh on the Group’s profit performance with its net profit growing by a subdued 1.4% in the fourth quarter of 2021, as compared to the third quarter of 2021.
“Despite the challenges in 2021, the Public Bank Group was able to steer through the difficult year with sustained balance sheet strength. The Group continued to demonstrate its resilience with net return-on-equity of 12.4% and the efficient cost-to-income ratio of 31.6%,” Tan Sri Teh said. With that said the Board of Directors is declaring a second interim dividend of 7.7 sen per share. Together with the first interim dividend of 7.5 sen per share, the full-year dividend for 2021 amounts to 15.2 sen. This represents a total dividend payout of RM2.95 billion or 52.2% of the Group’s net profit for 2021.”
For 2021, Public Bank Group achieved total loans growth of 3.6% to RM358.0 billion. Domestic loans grew by 3.4% to RM334.6 billion. Domestic loans growth was mainly supported by lending for residential properties, hire purchase, and small and medium enterprises (SMEs).
However, the increase in total loans was partially offset by the moderation in corporate loans arising from large repayment from certain corporate customers. In terms of funding, the Group’s total customer deposits grew by 4.0% to RM380.4 billion. Domestically, total customer deposits grew by 4.5% to RM352.6 billion.
Non-interest income was lower by 7.3% owing to the reduction in investment income amid a volatile market in 2021. However, the continued expansion in unit trust business as well as fee and commission income, which grew by 18.1% and 13.2% respectively in 2021, continued to complement the Public Bank Group’s profitability.
Tan Sri Teh concluded, “The Public Bank Group will continue to remain agile and responsive to the changing environment to ensure long term sustainability of its business and to better serve the interest of all its stakeholders.”
