Tuesday, January 25, 2011

#Update*Public Bank 4Q net profit up 24.7% to RM846.19m, declares 33c dividend

KUALA LUMPUR: PUBLIC BANK BHD [] net profit for the fourth quarter ended Dec 31, 2010 jumped 24.76% to RM846.19 million from RM678.23 million, driven mainly by growth in net interest and finance income, as well as higher non-interest income.

Its revenue for the quarter increased to RM2.97 billion from RM2.49 billion a year earlier. Earnings per share was 24.16.

The bank declared a second interim franked dividend of 25 sen less tax and single tier cash dividend of 8 sen in respect of the financial year ended Dec 31, 2010.

For the year ended Dec 31, 2010, Public Bank's net profit rose 21% to RM3.05 billion from RM2.52 billion, on the back of revenue RM11.04 billion.
In a statement Tuesday, Jan 25, the bank's founder and chairman Tan Sri Dr. Teh Hong Piow said the bank's improved financial performance in 2010 was mainly driven by the strong growth in net interest and finance income and higher non-interest income, coupled with lower loan impairment allowances.

Supported by strong organic growth in loans and core customer deposits, the group's net interest and finance income increased by RM638 million or 14% in 2010 as compared to 2009, he said.

Non-interest income of the group which recorded a commendable growth of 19% as compared to 2009, was supported by higher fee income generated by the group's unit trust and foreign exchange businesses, he said.

'On a quarterly basis, the Public Bank group continued to surpass the RM1 billion quarterly profit mark by recording a pre-tax profit of RM1.13 billion in the fourth quarter of 2010.

'This represented a strong growth of 8% as compared to the pre-tax profit of RM1.05 billion in the third quarter of 2010. Similarly, net profit attributable to shareholders for the quarter also grew by 8% as compared to the preceding quarter, to RM846 million,' he said.

Commenting on its prospects, Teh said the global economic outlook remains challenging whilst advanced economies continue to experience anemic growth and structural issues of high unemployment, high budget deficits and large sovereign debt burdens.

The Malaysian economy was however expected to remain healthy, supported by sustained expansion in domestic demand and recovery in exports, he said.

He said that along with the expectation that the Malaysian economy will grow by 5% to 6% in 2011, the Public Bank Group continued to operate in a healthy domestic operating environment due to favourable employment conditions, a stable financial system, sustained consumer and business sentiment, as well as the accommodative policy environment promoted by Bank Negara Malaysia.

'The Public Bank group's solid performance for 2010 reaffirms the proven business strategies of the group.

'Leveraging on the strong PB Brand, the group will continue to pursue strong organic growth strategies in 2011 in its lending and deposit-taking businesses, accelerate and diversify its fee-based revenue and further enhance its cost efficiency and return on equity,' he said.

Teh said the group would also continue to reinforce its prudent risk and capital management practices in sustaining its superior asset quality whilst upholding its strong corporate governance culture and practices.

'The group is continuously seeking avenues to further improve its customer service delivery infrastructure and fulfill the group's high customer experience expectations.

'Barring unforeseen circumstances, the Public Bank group is expected to maintain its earnings momentum and continue to record satisfactory performance in 2011,' he said.


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