Public Bank’s Net Profit for FY 2021 Amounts to RM5.66 Billion | Daily Express Online

Public Bank’s net profit for FY 2021 stands at RM5.66 billion

Published on: Saturday February 26, 2022

By: Bernama

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A woman walks past a Public Bank branch in Petaling Jaya. (Photo: Reuters)

Kuala Lumpur: Public Bank Bhd’s net profit increased to RM5.66 billion in the year ended December 31, 2021 (FY2021), from RM4.87 billion a year earlier. The Public Bank’s founder and chairman emeritus, Tan Sri Teh Hong Piow, said the group’s strong fundamentals and business strengths in its core lending and deposit businesses continued to underpin the bank’s financial performance.

“The board declares a second interim dividend of 7.7 sen per share. The second interim dividend will be paid on March 22, 2022, based on the dividend ex-date of March 14, 2022. This represents a total dividend payout of RM2.95 billion, or 52.2% of net profit group for 2021,” he said in a statement Friday. In 2021, Public Bank Group achieved total loan growth of 3.6% to RM358 billion. Domestic lending increased 3.4% to RM334.6 billion, mainly supported by lending to residential properties, hire-purchase and small and medium-sized enterprises (SMEs), but partially offset by moderating lending. corporate loans resulting from the substantial repayment of certain corporate clients. In terms of funding, the group’s total customer deposits increased by 4% to RM380.4 billion. Nationally, total customer deposits increased by 4.5% to RM352.6 billion.

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Public Bank’s cheap savings and demand deposits recorded particularly strong growth of 11.7%, which contributed positively to the group’s net interest margin. Teh said the group was able to achieve continued loan and deposit growth amid very intense market competition. At the end of December 2021, Public Bank’s funding position remained stable with a gross loan to fund and an equity ratio of 80%. In 2021, the group recorded a marginal increase of 1.4% in its overheads. Thanks to continued revenue growth, combined with cost containment, the cost-income ratio remained at an efficient level of 31.6%, compared to an average of 42.8% for the national banking sector. Meanwhile, around RM83.4 billion of domestic loans were approved under the repayment assistance schemes by the end of December 2021, benefiting nearly 438,000 customers.

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Regarding the special financing programs initiated by the government and Bank Negara Malaysia, Teh said the Public Bank has provided about RM3.4 billion in financing to more than 17,700 SMEs. At the end of December 2021, the group’s Common Equity Tier 1 ratio, Tier 1 capital ratio and total capital ratio stood at a healthy level of 14.5%, 14.6% and 17.7 % respectively, while the cash coverage ratio remained healthy. at 127.3 percent.
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