KUALA LUMPUR (April 20): Public Bank Bhd reported a 1.6% rise in first quarter net profit at RM1.25 billion from a year earlier on higher net interest and Islamic banking income. Lower taxes also led to higher net profit.

In a statement to Bursa Malaysia today, Public Bank said its RM1.25 billion net profit in the first quarter ended March 31, 2017 rose from RM1.23 billion. Revenue climbed to RM5.03 billion from RM5.01 billion.

"The higher earnings was mainly due to higher net interest income by 8.3% and higher income from Islamic banking business by 8.9%. These were partially offset by higher operating overheads due to higher business volume, lower investment and non-operational foreign exchange income. The group's pre-tax profit for the 1st quarter ended March 31, 2017 was lower by 1.2% to RM1.63 billion.

"The group's effective tax rate for the 1st quarter ended March 31, 2017 was lower than the statutory tax rate mainly due to the effects of lower tax rates in other tax jurisdictions and certain income not subject to tax, whereas the effective tax rate in respect of the previous corresponding quarter was higher than the statutory tax rate mainly due to certain expenses not deductible for tax purpose," Public Bank said.

Public Bank is looking at organic expansion to further grow its business.

"The group remains committed to pursue its strategy of organic growth in its retail banking leveraging on its strong corporate branding as a reputable, safe and efficient commercial bank. The group will also capitalise on opportunities in its overseas operations to further enhance its business," Public Bank said.

At Bursa Malaysia, Public Bank shares settled unchanged at RM19.92 at 12:30pm for a market value of RM76.92 billion. The stock saw 238,800 shares traded.