KUALA LUMPUR, Nov 27 — Public Bank Bhd recorded a net profit of RM1.39 billion for the third quarter (Q3) ended September 30, 2020, up from RM1.36 billion a year earlier.
The better profit was mainly due to higher investment income of RM102.9 million, higher Islamic banking income of RM63.6 million, higher net interest income of RM48.0 million and higher other operating income of RM25.2 million, it said.
The improvement was also due to higher net fee and commission income of RM89.1 million on higher income from stock-broking and fund management, the financial services group said in a filing with Bursa Malaysia today.
“These (gains) were partially offset by higher loan impairment allowance of RM285.4 million in anticipation of the potential effect of Covid-19 pandemic,” it added.
However, revenue was lower at RM5.13 billion against RM5.61 billion in the corresponding period last year, Public Bank said.
In a statement today, founder and chairman emeritus Tan Sri Teh Hong Piow said its impaired loan ratio remained low at 0.3 per cent, which was much better than the domestic banking industry’s impaired loan ratio of 1.4 per cent.
He said the group continued to provide loan and financing moratorium to individuals and business enterprises in Q3 even after the moratorium period ended on September 30.
“Amid the unprecedented challenging environment, the group has been managing well in safeguarding its bottom line.
“As the outlook remains highly uncertain, the group will continue to focus and be extra vigilant to ensure prudent credit policies, robust risk management, cost efficiency, and good corporate governance,” he said.
Teh also said the bank would continue to take an accommodative stance in the provision of assistance to its customers in line with the concerted efforts by the government and Bank Negara Malaysia to provide financial relief to individuals and businesses. — Bernama