Update Public Bank 2Q net profit rises 9%, pays 22 sen dividend

Update Public Bank 2Q net profit rises 9%, pays 22 sen dividend
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Tuesday, 23 July 2013 13:26

KUALA LUMPUR (July 23): PUBLIC BANK BHD [] posted a 9% rise in second quarter net profit from a year earlier on higher interest and non-interest income, besides lower allowance for bad loans.

In a statement to Bursa Malaysia today, Public Bank said net profit rose to RM1.02 billion in the second quarter ended June 30, 2013 from RM942.07 million previously. Revenue was higher at RM3.8 billion versus RM3.47 billion.

"The improved earnings was mainly due to higher net interest income and higher net fee and commission income partially offset by higher other operating expenses," Public Bank said.

Cumulative 1HFY13 net profit climbed to RM1.99 billion from RM1.87 billion a year earlier while revenue increased to RM7.48 billion from RM6.84 billion.

During 2QFY13, Public Bank plans to pay a dividend of 22 sen a share.

Looking ahead, the group expects to sustain its strong market position in the domestic consumer, and small and medium-sized enterprise financing segments.

The lender also sees growth opportunities in the residential property loan market.

"Despite intense competition, the group is expected to sustain its residential property financing segment growth given its focus on home mortgages for owner occupation and the broader base mass market segment, Public Bank said.

Abroad, Public Bank said it plans to grow its operations organically.

The bank said it expects to sustain the performance of its overseas operations amid moderate economic outlook and operating conditions in countries in which the group has a presence.