KUALA LUMPUR, Aug 28 — Public Bank Bhd’s net profit decreased to RM1 billion in the second quarter ended June 30, 2020 (Q2 2020) from RM1.33 billion recorded in the same period last year.
In a filing with Bursa Malaysia, the bank said its revenue declined to RM4.73 billion from RM5.59 billion previously.
Basic earnings per share slipped to 25.81 sen from 34.34 sen last time.
For the first half of 2020 (H1 2020), Public Bank recorded a net profit of RM2.33 billion compared with RM2.74 billion in the corresponding period in 2019.
“Net profit attributable to shareholders decreased by 15.0 per cent to RM2.33 billion,” founder, chairman emeritus, director and adviser Tan Sri Teh Hong Piow said in a statement.
He said the decline in profit was mainly attributed to a one-off net modification loss amounting to RM498 million in the second quarter of 2020, arising from the Covid-19 relief measures offered to individuals and businesses.
This reflects the group’s commitment and contribution in supporting and helping its customers to overcome financial difficulties during this challenging time.
Teh noted that in H1 2020, the group registered continued expansion in loans, albeit at a more moderate pace.
The group’s total domestic loans grew at an annualised rate of 2.6 per cent.
Meanwhile, on deposit-taking, the group’s total domestic customer deposits posted an annualised growth rate of 3.3 per cent.
Public Bank’s funding position remained stable with a healthy liquidity coverage ratio of 145.7 per cent as at the end of June 2020.
On the bank’s outlook, Teh said it would continue to focus on its organic growth strategy in retail and commercial banking.
“With the various measures taken to provide financial assistance to the small and medium enterprises (SMEs) and support home ownership, the group is of the view that there is still demand for financing.
“However, as the outlook remains uncertain, the group will remain cautious and place greater focus on risk management in its pursuit of business growth.
“In addition, prudent cost management will remain important and the group will continue to explore ways to further enhance its operational efficiency and productivity,” he added. — Bernama
