Published January 21, 2009

Record profit for Public Bank

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(KUALA LUMPUR) Malaysia's Public Bank Bhd says it has posted a record net profit of RM2.58 billion (S$1.08 billion) for the financial year ended Dec 31, 2008 - an increase of 22 per cent from RM2.12 billion a year ago.

The Star newspaper reported yesterday that the bank will reward shareholders with a final cash dividend of 25 sen per share and distribute one treasury share for every 35 shares held. For FY08, revenue was RM10.5 billion compared with RM9.55 billion a year ago, the bank said in a statement to Bursa Malaysia, the country's stock exchange.

The group's pre-tax profit rose 13 per cent or RM376 million to RM3.38 billion in 2008, on the back of strong growth of 16 per cent in operating profit. With the improved results in 2008, the group's net return on equity increased further to 30.4 per cent in 2008 against 26.3 per cent in 2007.

Earnings per share (EPS) increased to 76.9 sen from 63.3 sen in 2007. The strong profit performance was contributed by healthy growth in net interest and financing income and other operating income.

For the fourth quarter, net profit was RM653.97 million compared with RM579.96 million a year ago. Revenue was RM2.55 billion versus RM2.57 billion a year ago. EPS was 19.49 sen, up from 17.33 sen.

The banking group chairman Teh Hong Piow said net interest and Islamic banking income increased by RM564 million or 15 per cent to RM4.29 billion in 2008, driven by the sustained high rate of growth in both quality loans as well as customer deposits and continued improvement in asset quality.

Other operating income increased by 5 per cent to RM1.45 billion, mainly due to initial contribution from bancassurance distribution and the upfront goodwill income under its regional strategic alliance with ING Asia/Pacific Ltd (ING) and higher unit trust fund management fees.

The bank said: 'The Public Bank group achieved a loan growth rate of 19 per cent in 2008, well above the banking industry's November 2008 year-on-year growth rate of 11 per cent, with total loans, advances and financing increasing by RM19.3 billion to RM120.3 billion as at Dec 31, 2008.

'The group's domestic market share of loans and advances increased to 14.9 per cent as at the end of November 2008 from 14.4 per cent as at the end of 2007.'