Public Bank's Q1 net profit rises 4.1pc to RM968.3m

Public Bank Bhd's pre-tax profit increased 3.1 per cent to RM1.27
billion for the first quarter ended March 31, 2013, from RM1.23 billion
in the same period last year.

Revenue rose to RM3.67 billion from RM3.37 billion.

In
a statement today, founder and chairman Tan Sri Teh Hong Piow said the
group recorded a healthy loan growth in the first quarter this year,
with gross loans increasing by 11.8 per cent on an annualised basis to
RM203.6 billion.

"The loan growth was largely funded by
customer deposits, which also recorded a steady growth of 12.9 per cent
on an annualised basis, resulting in a stable and healthy
loan-to-deposit ratio of 86.9 per cent as at end-March," he said.

Teh
said the group continued to be at the forefront amongst Malaysian
banking groups, with the highest net return on equity of 22.2 per cent.

The
Public Bank also leads in asset quality and cost efficiency in the
banking industry, with notably low gross impaired loan ratio of 0.7 per
cent and cost-to-income ratio of 31.9 per cent for the period under
review.

The lending activities to the retail banking segment
remained the group's focus, driven mainly by loans to small- and
medium-sized enterprises (SMEs), as well as loans for the financing of
residential properties and purchase of passenger vehicles.

"Unwavering
support by our valued customers enables us to maintain market
leadership position in domestic lending for residential mortgages,
commercial property financing and passenger vehicles financing with
market shares of 19.2
per cent, 33.8 per cent and 26.4 per cent respectively," Teh said.

For
the first quarter this year, the group's domestic loan approvals
increased 12 per cent over the same period last year, with a total of
RM4.9 billion in loans approved to domestic SMEs.

On prospects,
Teh said the group would focus on its core retail banking and financing
business, whilst maintaining its prudent credit policies as well as
upholding strong corporate governance.

"We expect to maintain
earnings momentum for the rest of the year, underpinned by the healthy
outlook of the Malaysian economy," he added.-- Bernama