Public Bank 3Q net profit up 13% to RM1.19 billion

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Public Bank 3Q net profit up 13% to RM1.19 billion
By Liew Jia Teng / TheEdge Markets.com | October 23, 2014 : 1:38 PM MYT

KUALA LUMPUR (Oct 23): Public Bank Bhd ( Financial Dashboard) saw its net profit grow 13% to RM1.19 billion for the third financial quarter ended Sept 30, 2014 (3QFY14) from RM1.05 billion a year ago, on higher net interest income and net fee and commission income, as well as lower loan impairment allowances.

This was partially offset by higher other operating expenses.

In a filing with Bursa Malaysia today, the bank said its 3QFY14 revenue also grew 11.6% to RM4.32 billion, from RM3.87 billion a year ago.

In a statement, Public Bank said the favourable achievement in 3QFY14 was mainly attributed to higher operating revenue as a result of net interest income growth and steady non-interest income growth, coupled with stable credit costs.

For the nine-month period, Public Bank’s net profit increased 7.2% from RM3.04 billion to RM3.26 billion, thanks to higher net interest income of 5.3%, higher net fee and commission income of 9%, lower impairment allowances of 24.8% as well as higher investment income of 12.6%.

However, this was also partially offset by higher other operating expenses of 5.2%, due mainly to increased personnel cost which was in tandem with an increased headcount to support business expansion.

Revenue rose 8.6% from RM11.35 billion to RM12.33 billion.

In a separate announcement, Public Bank said it would make a full early redemption on its RM200 million subordinated notes together with accrued interest on Nov 6, 2014.

It had on Nov 6, 2009 issued the subordinated notes due in 2019, callable with step-up on Nov 6, 2014 at a coupon rate of 4.6% per year.