KUALA LUMPUR (July 28): Public Bank Bhd's second quarter net profit expanded 5% to RM1.26 billion from RM1.2 billion a year earlier on higher net interest and Islamic banking income.

In a statement to Bursa Malaysia today, Public Bank said revenue for the  second quarter ended June 30, 2016 (2QFY16) increased to RM5.02 billion from RM4.74 billion.

"The improved earnings was mainly due to higher net interest income and income from Islamic banking business which were partially offset by higher other operating expenses and lower other operating income," Public Bank said.

For 2QFY16, Public Bank declared a dividend of 26% or 26 sen, based on its shares' par value at RM1 each. The dividend's ex and payment dates fall on August 10 and 22 this year respectively.

For 1HFY16, Public Bank's net profit grew to RM2.49 billion from RM2.37 billion a year earlier. Revenue was higher at RM10.06 billion from RM9.34 billion.

Looking ahead, Public Bank said it would "continue to capitalise on its efficient customer service and service delivery" to maintain its market share in the Malaysian retail-banking segment.

Public Bank said the segment comprised property, vehicle, besides small and medium enterprise financing.

At 12:30pm, Public Bank shares fell six sen or 0.3% to settle at RM19.54 for a market value of RM75.45 billion. The stock saw some two million shares traded.