KUALA LUMPUR: Public Bank Bhd's net profit rose 6.3 per cent to RM1.7 billion in the third quarter ended Sept 30, 2023 (3Q23) from RM1.6 billion a year ago, on the back of higher revenue.
Its revenue for the quarter grew 17.8 per cent to RM6.48 billion from RM5.5 billion previously, according to Public Bank's filing to Bursa Malaysia today.
The bank registered higher earnings per share of 8.76 sen compared to 8.19 sen in 3Q22.
For the nine months period, Public Bank's net profit increased to RM5.03 billion from RM4.41 billion a year earlier, while revenue rose to RM18.87 billion from RM15.36 billion.
Public Bank's net interest income increased by 0.7 per cent and non-interest income grew by 3.4 per cent in 9MFY23 as compared to the same period in 2022.
The bank remained prudent in cost management and continued to sustain an efficient cost-to-income ratio of 33.7 per cent in the first nine months of 2023.
Gross impaired loans ratio remained stable at 0.58 per cent, reflecting the resilient risk profile of the group's loan portfolio.
Loan impairment allowances declined by 78.3 per cent as compared with the previous corresponding period, while loan loss coverage ratio continued to stay at a prudent level of 186.9 per cent as at the end of September 2023.
Meanwhile, the bank's total loans increased at an annualised growth rate of 5.9 per cent to RM393.6 billion, while its domestic loan portfolio recorded a strong annualised growth rate of 5.7 per cent compared with the banking industry growth rate of 4.1 per cent during the same period.
Non-interest income grew by 3.4 per cent to RM1.87 billion in 9MFY23, primarily contributed by foreign exchange and stockbroking businesses, which increased by 29.5 per cent and 22.5 per cent respectively.
Public Bank's overseas operations contributed 7.5 per cent to the group's profit, mainly from its Hong Kong and Indochina operations.
As at the end of September 2023, Public Bank sustained a healthy capital level with common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio standing at 14.5 per cent, 14.5 per cent and 17.4 per cent respectively.
Liquidity coverage ratio remained above the regulatory requirement, at a healthy level of 131.4 per cent.
Managing director and chief executive officer Tan Sri Dr Tay Ah Lek said Public Bank continued to demonstrate resilience in its financial performance for the nine months, with its loans and deposits businesses sustaining a positive growth trajectory.
The group also continued to navigate through the challenging operating environment with prudent cost management and stable asset quality, achieving a commendable net return on equity of 13.1 per cent.
"Public Bank will continue to operate efficiently, maintain prudence in its management of credit risk as well as preserve its sound corporate governance and risk management practices.
"The group's agility supported by its 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," he said in a statement.
Adding further, Tay said Public Bank will continue to capture valuable synergies from the business environment.
He noted that there is continued financing demand for property and car ownership as well as SME businesses.
The bank is seeing emerging opportunities from the development in the environmental, social and governance landscape and digital transformation.
