Public Bank Net Profit Dips Due To Prosperity Tax Recognition

Public Bank achieved a pre-tax profit of RM2.00 billion on the back of a turnover of RM4.887 billion for the first quarter ending March 31 2022 from a pre-tax profit of RM1.998 billion on the back of a turnover of RM5.030 billion previously. Its Net profit for the period was RM1,398.6 million as compared to 1,529.9 billion.

In a Bursa Filing, it said that the Net profit attributable to equity holders for the 1st quarter ended 31 March 2022 decreased by RM131.4 million or 8.6% to RM1,398.6 million as compared to the previous year’s corresponding period which was mainly due to the recognition of prosperity tax in the current period.

It said that The Group’s pre-tax profit remained flat with a marginal increase of RM1.3 million or 0.1% to RM2,000.3 million over the same period. During the current period, loan impairment allowance decreased by RM98.8 million (+49.8%) due to lower loan impairment allowance because of pre-emptive allowance made for the potential effect of the COVID-19 pandemic in the previous year corresponding quarter.

It said that the Net interest income increased by RM30.8 million (+1.5%) whereas other income increased by RM42.6 million (+60.8%) which was mainly due to higher foreign exchange income. These were partially offset by lower net fee and commission income, lower net income from Islamic banking business and lower investment income of RM93.5 million (-15.8%), RM32.1 million (- 7.4%) and RM27.5 million (-46.0%) respectively.

Public Bank said that the lower net fee and commission income were mainly due to lower fund management related fee income and stock-broking income, in tandem with weaker market sentiment whereas lower investment income was due to the current unfavourable market condition.

In a statement, Public Bank said that Malaysia’s proactive actions to contain COVID-19 is set to further stimulate the economy with the reopening of more social and economic sectors as well as international borders. Nevertheless, challenges surrounding the outlook remain due to external and domestic factors, such as the resurgence of COVID-19 variants and geopolitical tensions.

Tan Sri Dato’ Sri Dr. Teh Hong Piow, the Founder, Chairman Emeritus, Director and Adviser of Public Bank said, “With the economic recovery expected to gain further traction going forward, it will further stimulate sentiments on the ground, providing a more supportive environment for businesses.

After two years into the COVID-19 pandemic, the Public Bank Group’s resilience to challenges has been further strengthened.  Coupled with its sound fundamentals built over the years, the Public Bank Group will remain in good stead to capitalise growth opportunities in the post-pandemic economy going forward. The Group will remain steadfast in pursuing its organic business strategy, improving cost efficiency and maintaining superior asset quality to support sustainable growth.”

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