KUALA LUMPUR (May 2): Public Bank Bhd's net profit for the first quarter ended March 31, 2018 (1QFY18) rose 12% year–on-year to RM1.40 billion, from RM1.25 billion, underpinned by a sustained growth of 4.0% in the group’s net interest income, complemented by a strong growth of 15.6% in non-interest income.

In a filing with Bursa Malaysia, the banking group said revenue for the quarter rose to RM5.35 billion, from RM5.03 billion previously.

Earnings per share was 36.39 sen versus 32.32 sen a year earlier.

In a separate statement, Public Bank chairman Tan Sri Dr Teh Hong Piow said competition in the financing and deposit market had remained intense.

“However, the Public Bank Group was able to sustain a favourable market position which continued to generate revenue, contributing to the Group’s profit growth.

“As reflected by its gross loan to fund and equity ratio of 79.9%, the Group’s financing growth has remained well supported by its healthy funding structure.

“Furthermore, the Group has remained vigilant and placed great emphasis on maintaining a healthy liquidity position, in the face of the challenging operating environment and stringent liquidity regulatory requirement,” Teh said.

In the first quarter of 2018, Public Mutual, which is Public Bank Group’s wholly-owned unit trust management subsidiary, posted a pre-tax profit growth of 16.6%, he added.

“The favourable performance was underpinned by its strong market position, supported by a total number of 142 unit trust funds under its management, with a total net asset value of RM81.9 billion, capturing 41.1% of retail market share in the domestic private unit trust industry,” Teh said.

He also said that Public Bank’s overseas operations continued to contribute to the group’s profits.

“For the first quarter of 2018, overseas operations contributed 8.1% of the Public Bank Group’s pre-tax profit, with Public Financial Holdings Limited Group in Hong Kong and Cambodia Public Bank Plc being the main contributors to the Group’s overseas business profits,” Teh added.

On prospects, Teh said with domestic demand expected to remain favourable in 2018, resilient growth in the domestic economy will continue to be a strong support for the group’s banking business.

“The Group maintains a positive outlook for its core business, focusing on financing of residential properties and commercial lending to small and medium enterprises.

“The Group will stay agile to the advancement in financial technology, and will continue to enhance its digital capability, in response to the needs of the market. Furthermore, the Group will continue to strengthen its banking infrastructure, product innovation and service quality, as strategic enablers to drive further business growth,” he added.

At midday break, Public Bank shed 0.098% or 2 sen to RM23.78, with 1.71 million shares done.