Public Bank posts record net profit of RM2.58b

Published: Tuesday January 20, 2009 MYT 5:35:00 PM
Public Bank posts record net profit of RM2.58b
KUALA LUMPUR: Public Bank Bhd posted record net profit of RM2.58bil for the financial year ended Dec 31, 2008, an increase of 22% from RM2.12bil a year ago.
In an announcement to Bursa Malaysia on Tuesday, it also rewarded shareholders with a final cash dividend of 25 sen per share and to distribute on treasury share for every 35 shares held. For FY08, revenue was RM10.5bil compared with RM9.55bil a year ago.
The group’s pre-tax profit rose 13% or RM376mil to RM3.38bil in 2008, on the back of strong growth of 16% in operating profit. With the improved results in 2008, the Group’s net return on equity increased further to 30.4% in 2008 against 26.3% 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 (Q4), net profit was RM653.97mil compared with RM579.96mil a year ago. Revenue was RM2.55bil versus RM2.57bil a year ago. EPS was 19.49 sen from 17.33 sen.
The banking group chairman, Tan Sri Dr Teh Hong Piow said net interest and Islamic banking income increased by RM564mil or 15% to RM4.29bil 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% 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 Public Bank group achieved a loan growth rate of 19% in 2008, well above the banking industry’s November 2008 year-on-year growth rate of 11%, with total loans, advances and financing increasing by RM19.3bil to RM120.3bil as at Dec 31, 2008.
“The group’s domestic market share of loans and advances increased to 14.9% as at the end of November 2008 from 14.4% as at the end of 2007 and 13.2% as at the end of 2006, as a result of the strong loan growth in the last few years,” it said.