Public Bank net profit up 14.3% to $1.08b in 9M 2023

Total loans rose faster than the Malaysian banking industry average.

Malaysia’s Public Bank reported a net profit of RM5.03b (approximately US$1.08b) in the first nine months of 2023, 14.3% higher than the corresponding period in 2022, the bank’s latest financial statement showed.

Pre-tax profits is RM6.47b for the period, 2.7% higher than a year earlier.

Public Bank’s loans and deposits business sustained positive growth trajectory in 2023, said managing director and CEO Tan Sri Dato’ Sri Dr. Tay Ah Lek.

“The group also continued to navigate through the challenging operating environment with prudent cost management and stable asset quality, achieving a commendable net return on equity of 13.1%,” Tay said in a press release announcing the bank’s latest profits.

Net interest income increased by 0.7%, and non-interest income grew 3.4% during the same period.

Cost-to-income ratio is 33.7% in the first nine months of 2023.

Gross impaired loans ratio remained stable at 0.58%. Loan impairment allowances declined by 78.3% as compared to 2022, whilst loan loss coverage ratio continued to stay at a prudent level of 186.9% as at the end-September. 

ALSO READ: Public Bank posts 18% YoY net profit growth for 1H 2023

Loans on the rise
Public Bank saw its total loans increase at an annualised growth rate of 5.9% in the January-September period, to RM393.6b.

The domestic loan portfolio recorded an annualised growth rate of 5.7%, higher than the overall banking industry’s growth rate of 4.1% in the same period.

Residential properties financing, hire purchase financing and SME financing drove up domestic loans.

In terms of market share, Public Bank maintained its market leader position in key financing segments, with 20.5% market share in residential properties financing, 30.5% in hire purchase financing and 18.4% in SME financing. 

Total newly approved domestic loans also rose by 10.2% for the first nine months of 2023 as compared with the same period last year, supporting a healthy loans pipeline going forward.

Customer deposits also rose 4.7% to RM408.6b. Domestic deposits rose by 4.6% on an annualised basis to RM379.7b, supported by the consistent growth in retail deposits. 

(US$1 = RM 4.65)