Public Bank Berhad has released its earnings results, with pre-tax profit for the nine months increasing by RM161.1 million or +2.6% to RM6.4 billion as compared to RM6.3 billion in the previous year’s corresponding period.
Revenue for Q3 increased to RM6.48 billion against the preceding year’s quarter of RM5.5 billion, and profit attributable to equity holders came in at RM1.7 billion an increase from RM1.59 billion.
For the period under review, PBB said the loan impairment allowance decreased by RM215.8 million (+78.3%) as adequate pre-emptive allowance has been made in prior years. Non-interest/financing income improved by RM60.8 million (+3.4%) mainly due to higher foreign exchange income and stock-broking income but was partially offset by lower investment income. Other operating expenses increased by RM118.1 million (-3.7%) whereas net interest income and Islamic banking income decreased marginally by RM16.3 million (-0.2%), which was mainly due to interest/financing margin compression
despite healthy loan growth achieved during the period.
The 9M net profit attributable to equity holders increased by RM628.0 million to RM5 billion or 14.3% over the same period mainly due to the effect from the absence of prosperity tax as compared to the previous year.
Other comprehensive income (net) of the Group for the current period was RM801.4 million as compared to other
comprehensive loss (net) of RM190.9 million in the previous corresponding period, which was an increase of other
comprehensive income of RM992.3 million. This was mainly attributable to the reversal of losses on the revaluation of
financial investments recognised previously, partially offset by lower gain on cash flow hedges in the current period.
The Group said profit continued to be supported by healthy loans and customer deposits growth. Gross loans grew by
RM20.0 billion or 5.4% to RM393.6 billion as at 30 September 2023 as compared to RM373.6 billion a year ago,
mainly contributed by growth in mortgage financing, hire purchase financing and commercial property financing. Total
deposits from customers increased by 3.9% or RM15.3 billion to RM408.6 billion as at 30 September 2023. The Group’s
gross impaired loan ratio remained relatively low at 0.58% as at 30 September 2023 as compared to the average
industry’s gross impaired loan ratio of 1.72%
The Group’s Common Equity Tier I capital ratio, Tier I capital ratio and total capital ratio stood at a healthy level of
14.5%, 14.5% and 17.4% respectively. The Group’s liquidity position also remained stable and healthy with liquidity
coverage ratio standing at 131.4% as at 30 September 2023.
