KUALA LUMPUR: RAM Ratings has reaffirmed PUBLIC BANK BHD []s long- and short-term financial institution ratings, at AAA and P1, respectively.
At the same time, the respective long-term ratings of Public Bank's Subordinated Medium-Term Notes (MTN) under its up to RM5 billion Subordinated MTN Programme, RM1.2 billion Innovative Tier-1 Capital Securities and up to RM5 billion Non-Cumulative Perpetual Capital Securities under the Non-Innovative Tier-1 Stapled Securities Programme were reaffirmed at AA1, AA2 and AA2.
All the long-term ratings have a stable outlook.
In a statement Wednesday, June 15, RAM Ratings said the reaffirmation was premised on Public Bank's robust financial profile and excellent franchise in the domestic market, underscored by its superior asset quality and strong profitability.
The rating agency said the bank's prudent credit culture had enabled it to glean further improvement in its asset quality, as headlined by a gross impaired-loan ratio of 1.1% as of end-March 2011 (end-2009: 1.4%).
In addition, its pre-tax profit surpassed the RM4 billion-mark in FYE 31 December 2010, on the back of double-digit growth for most business segments, including overseas operations, it said.
'RAM Ratings expects Public Bank's credit metrics to stay largely intact, although its net interest margins are predicted to come under some competitive pressure this year,' it said.
Meanwhile, RAM Ratings said Public Bank's risk-weighted capital-adequacy ratio stood at 13.0% as at end-March 2011, which was deemed healthy relative to its robust asset quality and profitability.
With the proposed tightening of capital rules, however, the banking group may be required to increase the level of its core capital, it said.
''
At the same time, the respective long-term ratings of Public Bank's Subordinated Medium-Term Notes (MTN) under its up to RM5 billion Subordinated MTN Programme, RM1.2 billion Innovative Tier-1 Capital Securities and up to RM5 billion Non-Cumulative Perpetual Capital Securities under the Non-Innovative Tier-1 Stapled Securities Programme were reaffirmed at AA1, AA2 and AA2.
All the long-term ratings have a stable outlook.
In a statement Wednesday, June 15, RAM Ratings said the reaffirmation was premised on Public Bank's robust financial profile and excellent franchise in the domestic market, underscored by its superior asset quality and strong profitability.
The rating agency said the bank's prudent credit culture had enabled it to glean further improvement in its asset quality, as headlined by a gross impaired-loan ratio of 1.1% as of end-March 2011 (end-2009: 1.4%).
In addition, its pre-tax profit surpassed the RM4 billion-mark in FYE 31 December 2010, on the back of double-digit growth for most business segments, including overseas operations, it said.
'RAM Ratings expects Public Bank's credit metrics to stay largely intact, although its net interest margins are predicted to come under some competitive pressure this year,' it said.
Meanwhile, RAM Ratings said Public Bank's risk-weighted capital-adequacy ratio stood at 13.0% as at end-March 2011, which was deemed healthy relative to its robust asset quality and profitability.
With the proposed tightening of capital rules, however, the banking group may be required to increase the level of its core capital, it said.
''
No comments:
Post a Comment