KUALA LUMPUR: Public Bank Bhd saw both its net profit and revenue rise as it reported its first quarter 2017 financial performance results today.
In the first quarter of 2017, Public Bank saw its revenue rose 0.41 per cent to RM5.02 billion, compared to RM5 billion earned in the preceding year's corressponding quarter.
The net profit grew at a higher rate, at 1.47 per cent as the bank reported RM1.24 billion in net profit in 1Q2017, compared to the 2016's corressponding quarter's RM1.22 billion.
In a statement filed with Bursa Malaysia today, the bank said that the deposit-taking business achieved an annualised 8.1 per cent growth in total customer deposits for the first quarter of 2017.
This, it said, underpinned a stable base for the Group’s funding position.
Public Bank founder and chairman Tan Sri Dr Teh Hong Piow said that at the same time that Public Bank Group’s loan base expands, the group emphasised the maintaining of a healthy funding structure to support its loan business.
"The group’s healthy deposit growth has continued to form a stable funding base for the Group in managing its liquidity needs,” he said.
Teh also went on to say that the bank's unit trust business (Public Mutual) recorded a double-digit growth of 11.1 per cent in pre-tax profit for the first quarter of 2017 compared to the previous corresponding period.
"Public Mutual also continued to maintain its strong market position, capturing 45.8 per cent retail market share of the private unit trust industry. As at the end of March 2017, Public Mutual has 135 unit trust funds under its management with a total net asset value of RM74.4 billion,” he explained.
On its overseas operations, the bank said that in the first quarter of 2017, the overseas operations contributed 10 per cent of the Group’s overall pre-tax profit.
Public Financial Holdings Limited Group in Hong Kong and Cambodian Public Bank Plc were cited as the main contributors to the Group’s overseas business profits.
"The Public Bank Group has also recorded commendable growth in its Vietnam’s operation, through its wholly-owned subsidiary, Public Bank Vietnam Limited (PBVN).
"The acquisition of the remaining equity interest in PBVN in 2016 has resulted in very encouraging performance. The Group will continue to undertake expansion exercise in Vietnam, with targeted opening of six new branches in 2017,” Teh added.
He explained that the Public Bank Group sees huge growth potential in Indochina and it is experiencing expansion through the opening of branches, and enhancement of products and services in Cambodia, Vietnam and Laos.
Going forward, the bank is alert to the various headwinds facing the economy. As a result, Teh assured that the Group will remain agile and responsive to various challenges and opportunities.
"The Group will continue to take proactive efforts to ensure it remains on the trajectory towards meeting its 2017 growth targets,” he said.