Public Bank first-quarter net profit up 23%

KUALA LUMPUR: Public Bank Bhd registered group net profit of RM476mil in the first quarter ended March 31, up 23% over the same period last year. 

Turnover was up 31% to RM2.21bil from RM1.69bil, while pre-tax profit added 24% to RM675mil against RM545.7mil a year ago. 

Chairman Tan Sri Teh Hong Piow said in a statement that the improved profit was attributable to growth in net interest income, net income from Islamic banking operations and other operating income as well as lower loan loss allowances, partially offset by an increase in other operating expenses. 

The net profit attributable to shareholders for the quarter under review increased by 7% compared with the preceding quarter to Dec 31, 2006. Annualised net return on equity improved further to 22.9% from 21.9% previously. 

Teh said Public Bank's earnings per share (EPS) increased by 20% to 14.2 sen in the first quarter of 2007 compared with 11.8 sen in the previous corresponding quarter.  

The banking group's first quarter EPS was well above analysts' EPS estimates of 13.85 sen. The annualised consensus for Public Bank's EPS was 55.4 sen. 

As at end-March, the group's total assets expanded by RM9.52bil, or 6%, to RM157.3bil. Its total loans and advances grew 4.4% to RM88.1bil, increasing its market share to 13.6% against 13.2% at end-2006. 

The group's net non-performing loan ratio remained below 1.6% as at end-March, with loan loss coverage standing at 102%, which is the highest and most prudent in the Malaysian banking industry. 

Public Mutual Bhd's total assets under management increased by 14% to reach RM18.46bil while total sales of unit trusts reached a record high of RM2.22bil in the first quarter of 2007. 

On the group's prospects, Teh said Public Bank group would strive to increase its domestic market share in consumer financing and retail commercial lending to small and medium enterprises as well as its deposit-taking business by leveraging on its wide branch network, strong PB Brand and continuing to expand overseas operations.  

It will also expand its fee-based activities particularly in fund management, bancassurance and other wealth management products.