Friday 29 Mar 2024
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KUALA LUMPUR (Feb 5): Public Bank Bhd reported a 21% rise in net profit to RM1.25 billion for the fourth quarter ended December 31, 2014 (4QFY14) from RM1.03 billion a year earlier on higher interest, fee and commission income.

Higher Islamic banking and foreign exchange income besides lower bad loan allowance also supported profit growth, according to Public Bank's (fundamental: 2.8; valuation: 1.2) statement to Bursa Malaysia today.

Group revenue rose to RM4.53 billion from RM3.92 billion a year earlier.

For the full year, Public Bank registered a higher net profit of RM4.52 billion versus RM4.06 billion a year earlier. Revenue rose to RM16.86 billion from RM15.26 billion.

The group proposed a second interim dividend of 31 sen in 4QFY14, bringing full-year dividends to 54 sen.

Public Bank chairman Tan Sri Teh Hong Piow said in a separate statement the group had seen growth amid global volatility.

Despite net interest margin compression, Teh said Public Bank had posted higher loan and deposit growth.

"Despite facing net interest margin compression, the group's net interest income grew by 6.5% during the year, mainly contributed by continued strong loan and deposit growth as well as the positive impact arising from the hike in the overnight policy rate in July 2014 and the rights issue which was completed in August 201

"While the Malaysian economy remained resilient through 2014, the growth sentiment has been moderating especially towards the third quarter of 2014 amid concerns over the volatility in the equity market, weak ringgit and decrease in oil prices," Teh said.

According to Teh, Public Bank recorded loan growth of 10.8% in FY14 while customer deposit was 10.2% higher.

"On the banking industry front, we expect the net interest margin compression to persist as the competition for both loans and deposits market share remains intense," he said.

At 12.30pm, Public Bank shares rose four sen or 0.2% to settle at RM18.40 with 4.11 million shares done. At the current share price, the group has a market capitalisation of about RM71 billion.

Public Bank shares has gained 0.55% this year, underperforming the FBM KLCI's 2.33% rise.
 
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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