KUALA LUMPUR (July 30): Public Bank Bhd's net profit increased 13% to RM1.2 billion in the second quarter ended June 30, 2015 (2QFY15), from RM1.06 billion a year earlier. Profit rise came on higher net interest income and lower bad loan allowance.
In statements to the bourse today, Public Bank (fundamental: 2.8; valuation: 1.8) said revenue climbed to RM4.74 billion, from RM4.06 billion.
For 1HFY15, Public Bank's net profit grew to RM2.37 billion, from RM2.07 billion a year earlier, while revenue rose to RM9.34 billion, from RM8.01 billion.
Public Bank founder and chairman of Tan Sri Dr Teh Hong Piow said profit growth was mainly attributed to healthy growth in loans and deposits, besides the banks's stable asset quality.
“Gains arising from foreign exchange fluctuation in respect of the group’s foreign operations, have also partially contributed to the profit growth for the period, ” Teh said.
Moving forward, Teh said steady domestic demand would continue to be supportive of the banking sector.
However, banks are expected to continue facing net interest margin pressure, due to intense market competition, according to him.
Today, Public Bank declared a single-tier dividend of 24 sen a share for the quarter in review.
The group said its dividend's ex-date falls on Aug 12 this year. The dividend will be paid on Aug 24.
At 12:30pm today, Public Bank shares rose two sen or 0.1% to settle RM18.86, giving the group a market capitalisation of RM72.83 billion.
Some 2.7 million shares changed hands
(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.)