KUALA LUMPUR, May 11 — Public Bank Bhd posted a higher net profit of RM1.53 billion for the first quarter ended March 31, 2021 (Q1 2021) from RM1.33 billion recorded in the same period a year ago.
In a filing with Bursa Malaysia, the bank said the improved performance was mainly attributable to lower loan impairment allowance, higher net interest income and net income from the Islamic banking business, as well as higher net fee and commission income.
Revenue, however, slipped to RM5.03 billion versus RM5.51 billion, while basic earnings per share improved to 7.88 sen compared with 6.85 sen before.
In a separate statement, founder/chairman emeritus, director and adviser Tan Sri Dr Teh Hong Piow said the operating environment remained challenging in Q1 2021 as the movement control order (MCO) 2.0 was imposed to address the resurgence of Covid-19 cases.
“Despite these challenges, the Malaysian economy gradually gained momentum, on the back of improved sentiment arising from the global deployment of Covid-19 vaccines, together with various ongoing policy support.
“Under the improved economic environment, the group achieved better profit performance.
“The improvement was driven by the continued expansion in loans and deposits businesses, and further boosted by fee-based revenue growth,” he said.
Teh said the bank continued to gain traction in its lending and deposit-taking businesses, despite the ongoing economic challenges.
As of end-March 2021, Public Bank group’s total loans recorded an annualised growth of 4.8 per cent, and this was mainly supported by residential property financing, passenger vehicle financing, and small and medium enterprise financing.
He also said that with the low interest rate environment and economic stimulus measures, the group recorded improvements in its housing loans approvals, which increased 26.5 per cent in Q1 2021 compared with the same period last year.
“With an improved operating environment, the banking industry is expected to achieve better performance in 2021.
“Nevertheless, the group is mindful of ongoing downside risks that could pose further disruptions to the banking business,” he said.
He added that strategic business direction, prudent risk management practices, and cost efficiency measures will remain on the group’s business agenda to withstand uncertainties and respond appropriately to any changes.
“While the group remains cautiously optimistic about the economic outlook, it will continue to strive hard for business growth in its core business segments in order to continue generating value for its stakeholders,” he said. — Bernama
