Public Bank's 2Q Net Profit Rises To RM1.78 Bln, Declares 10 Sen Dividend

KUALA LUMPUR, Aug 27 (Bernama) -- Public Bank’s net profit rose to RM1.78 billion in the second quarter ended June 30, 2024 (2Q 2024) compared to RM1.61 billion a year ago.

Revenue also increased to RM6.69 billion in the quarter from RM6.26 billion previously. 

The better performance during the quarter was primarily due to several factors, namely improved net profit attributable to equity holders; increased net interest and Islamic banking income; higher contribution from associated companies; and increase in non-interest/financing income.

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Nonetheless, the bank said it was partially offset by the increase in other operating expenses by RM101.1 million.

“Higher non-interest/financing income was mainly due to higher investment income, higher unit trust related fee income and higher stock-broking income, but was partially offset by lower foreign exchange and other income.

“Higher other operating expenses was mainly due to higher personnel and establishment costs arising from increasing business activities,” it added. 

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The group also reported other comprehensive loss (net) in the current quarter of RM76.2 million, a decrease of RM535.2 million as compared to other comprehensive income (net) of RM459.0 million in the 2Q 2023.

“This was mainly due to losses on foreign currency translation and cash flow hedges in 2Q 2024 as compared to gains recorded in 2Q 2023, and no revaluation of properties in 2Q 2024,” it said.

For the first half year ended June 30, 2024 (1H 2024), Public Bank recorded a higher net profit of RM3.43 billion against RM3.33 billion in 1H 2023, while revenue rose to RM13.48 billion from RM12.38 billion previously. 

On prospects, the bank said the group remains committed to strengthening and expanding its business and regional presence, particularly in Indochina, capitalising on the regional economic prospects while leveraging its strong branding and prudent management practices.

“The group continues to ensure that it remains well-capitalised at all times to support its business growth while safeguarding the interests of its stakeholders.

“The group’s healthy capital and liquidity position coupled with its resilient asset quality and prudent loan loss reserves will enable the group to generate sustainable profit through challenging times and business cycles,” it added. 

Public Bank has declared a first interim dividend of 10 sen per share for the financial year ending Dec 31, 2024 (FY2024), amounting to a payout of RM1.94 billion, which represents 56.5 per cent of the Group’s net profit for the period.

The dividend will be paid on Sept 23, 2024, based on the dividend entitlement date set for Sept 11, 2024.

In a separate statement, Public Bank said, notwithstanding the competitive operating environment, the group continued to sustain healthy business momentum, driven mainly by its resilient growth in loans and deposits businesses and further supported by growth in its non-interest income.

Coupled with its prudent cost management and sound asset quality, the group achieved a net return on equity of 12.8 per cent for 1H 2024, it said. 

 Its managing director and chief executive officer Tan Sri Dr Tay Ah Lek said that underpinned by resilient private expenditure and investment activities, the operating environment in Malaysia will remain conducive to the banking business growth.

“The group will continue to strengthen its core competency in the retail banking segment while remaining agile in seizing new opportunities in sustainability and digital transformation in driving business growth.

“As the group proactively moves forward, it will continue to ensure a solid foundation with healthy capital and liquidity position, as well as sound asset quality to safeguard its bottom line and sustainable stakeholder value,” he said.

-- BERNAMA