KUALA LUMPUR (July 25): Public Bank Bhd’s net profit for the second quarter ended June 30, 2017 (2QFY17) increased 6% to RM1.33 billion, from RM1.26 billion in the previous year, mainly supported by higher net interest income, lower loan impairment allowance and higher net fee and commission income.

Revenue increased 3.75% to RM5.17 billion, from RM4.98 billion a year ago.

The group proposed a first interim dividend of 27 sen per share, payable on Aug 17. 

“The Public Bank Group has continued with its positive momentum in sustaining profitability growth. The group’s clear and focused business strategy coupled with its prudent credit culture, continues to underpin its consistent financial performance under the current challenging operating environment,” Public Bank chairman Tan Sri Teh Hong Piow said in a statement.

The bank said its loan and deposit portfolio recorded a growth of 8.3% in its net interest income.

“With the improved profitability, the Public Bank Group achieved a net return on equity of 15.3%. The group’s financial strength was also attributed to its strong asset quality and efficient cost management, as reflected in its gross impaired loan ratio of 0.5% and cost-to-income ratio of 33.8% as at the end of June 2017,” the added.

For its cumulative first half, the group made a net profit increase of 3.8% to RM2.6 billion, from RM2.49 billion in the previous year.

Its 6 months revenue was up by 2% to RM10.2 billion, from RM9.99 billion a year ago.

In the first half of 2017, the bank’s total loans annualised growth rate grew 3.1% to RM298.5 billion.

“Domestic loan growth continued to stay above industry average, growing at an annualised rate of 4.3%, as compared to the annualised industry loan growth of 2.8%,” the group said.

Moving forward, the group expects to maintain its leading market position in the domestic retail segment, driven by stable loans growth for home mortgages and the small and medium enterprises (SME).