Public Bank Group records $700M in first-half net profit
Public Bank Group records $700M in first-half net profit
Malaysia's Public Bank Group, parent company of Cambodian Public Bank Plc, reported a sound business performance despite ongoing interruptions from Covid-19.For the first half of this year, the group posted pre-tax profit of 3.79 billion ringgit ($910 million) and net profit attributable to shareholders of 2.91 billion ringgit.
The group said its continued profitability was largely supported by its core business of lending and deposit-taking, and further driven by its non-interest income.
Net profit in the second quarter of this year declined by 9.5 per cent quarter-on-quarter to 1.38 billion ringgit, mainly arising from higher pre-emptive provisions set aside for loan impairment, according to the group’s founder and director Teh Hong Piow.
He said the group’s financial performance last year was significantly affected by the Covid-19 pandemic and its spillover effect on the economy.
Given the low base effect from a year ago, coupled with the recovery of the Malaysian economy into 2021, the group registered improved performance in the first half of the year, he said.
However, he added, the spike of Covid-19 cases and the imposition of more stringent containment measures in the second quarter weighed on the group’s business performance.
“Given the highly challenging environment, the group had undertaken more proactive measures on recalibrating its business strategies and continued to place great emphasis on prudent risk management and enhancing productivity.
“These efforts enabled the group to register a net return-on-equity of 12.9 per cent and an efficient cost-to-income ratio of 31.6 per cent during the first half of 2021,” Teh said.
In appreciation of shareholders’ continued support, he said, the board of directors has declared a first interim dividend of 7.5 sen (1.8 US cents) per share with a total dividend payout of 1.46 billion ringgit, representing 50.0 per cent of the group’s net profit for the half year ended June 30.
The dividend will be paid on September 23, based on the dividend entitlement date of September 14, he added.
