Public Bank Confident Of Achieving Sustainable Growth In Future

KUALA LUMPUR, March 28 (Bernama) -- Public Bank Bhd is well positioned to achieve sustainable growth in the future, says Founder and Chairman, Teh Hong Piow. In outlining the strategic direction and outlook for the Public Bank Group at the 50th Annual General Meeting (AGM) here Monday, he said it was entering 2016 mindful of the ongoing economic and business challenges, while confident of having what it took to surge ahead. "Going forward, the Group will remain focused on its core retail banking and financing business, whilst maintaining prudent credit policies, as well as upholding strong corporate governance. "Moving into the Group's 50th anniversary in 2016, it is confident of being well positioned to achieve sustainable growth in the future," Teh added. Managing Director Tay Ah Lek said the more than 5,000 shareholders attending the golden jubilee AGM had acknowledged Teh's contribution to the bank's consistent profitability and sterling performance since establishment in 1966. For the financial year ended Dec 31, 2015 (FY15), Public Bank's pre-tax profit crossed the US$1.49 billion (RM6 billion) mark for the first time, as highlighted by Tay, and rose 11.6 per cent to RM6.49 billion from RM5.81 billion in 2014. "The Group continued to maintain its leading position amongst banking peers in Malaysia with the highest net return on equity of 17.8 per cent in FY15, a most efficient cost to income ratio of 30.5 per cent and the lowest gross impaired loans ratio of 0.5 per cent," said Tay. On the Minority Shareholders' Watchdog Group (MSWG) concerns about the bank's strategy for the future, he said as part of strategies to drive profitability and enhance return on assets, the fee-based income will continue to be the Group's focus. "It includes business ranging from unit trust funds, bancassurance products, structured investment products, trade finance, remittances and card business. "The Group will also continue to emphasise on product innovation and introduction of new products to meet evolving customer expectations, while pursuing cross-selling initiatives," he added. Meanwhile, the Group's unit trust management business undertaken by wholly-owned subsidiary, Public Mutual Bhd, continued to be a main contributor to non-interest income growth. "In FY15, Public Mutual recorded a pre-tax profit of RM541.2 million and sustained market leadership in the private unit trust business, with 122 funds under management. "Total assets under management stood at RM64.8 billion, capturing an overall retail market share of 48.9 per cent," Tay said. He said in view of the Group's good performance in FY15, the board of directors had declared a second interim dividend of 32 sen, taking the full-year dividend to 56 sen. "The total dividends paid for 2015 was RM2.16 billion, representing a payout of 42.7 per cent of the Group's net profit for 2015," Tay added. (US$1 = RM4.01) -- BERNAMA