KUCHING: Public Bank Bhd’s (Public Bank) earnings for the fourth quarter of 2016 (4Q16) ended December 2016 remained flat at RM1.48 billion as compared with RM1.49 billion recorded in 4Q15.
Nonetheless, the banking group in a filing to Bursa Malaysia said 4Q16 revenue grew by 3.1 per cent year-on-year (y-o-y) to RM5.08 billion from RM4.93 billion generated in 4Q15.
For financial year 2016 (FY16) ended December 2016, Public Bank said turnover increased by 4.8 per cent y-o-y to RM20.10 billion from RM19.18 billion generated in FY15. The banking group added FY16 net profit gained by 2.9 per cent y-o-y to RM5.21 billion from RM5.06 billion recorded in FY15.
Meanwhile, Public Bank’s chairman Tan Sri Teh Hong Piow in a statement said,“In this 50th anniversary of the Public Bank Group’s formation, the group has demonstrated the ability to generate stable profitability amid the increasing challenging operating environment.
At the same time, Public Bank noted the group’s balance sheet growth, gross loans as at the end of 2016 stood at RM294.0 billion, representing a growth of 7.5 per cent as compared with a year ago.
The banking group observed that customer deposits grew by 2.9 per cent to reach RM310.0 billion as at the end of 2016.
In view of the banking group’s favourable financial performance in 2016, Teh said, “The Board of Directors has declared a second interim dividend of 32 sen, taking full year dividend for 2016 to 58 sen,” he said.
Total dividend paid and payable for 2016 amounted to RM2.24 billion. Teh observed that the amount represented a total payout ratio of 43.0 per cent of the group’s net profit for 2016.
“Lending to the retail banking segment remained the key strategic focus of Public Bank Group, with consumer financing for the purchase of residential properties and passenger vehicles and extension of credit to small and medium enterprises (SME),” he shared.
As at the end of 2016, Public Bank disclosed that the group’s retail and SME loan portfolio collectively accounted for 85 per cent of its total loans.
In 2016, Public Bank observed that total net income of the group grew by 4.3 per cent to RM9.96 billion, supported by continued growth in the net interest income and fee and commission income.
Apart from that, Public Bank noted the group’s gross impaired loan ratio stood at 0.5 per cent, continued to remain significantly lower than the banking industry’s ratio of 1.6 per cent as at the end of 2016,
Public Bank believed the group’s low impaired loan ratio presented a good indication of the group’s prudent credit risk management practices.
Meanwhile, Public Bank stressed that the impaired loans of the group was well covered, with loan loss coverage ratio of 102.7 per cent as at the end of 2016, as compared to the banking industry’s coverage ratio of 90.2 per cent.
