Public Bank’s Q3 net profit down 2pct to RM1.36b

30-Nov-2021 Intellasia | Bernama | 5:02 AM Print This Post

Public Bank posted a net profit of RM1.36 billion in the third quarter ended September 30, 2021, down about two per cent from RM1.39 billion a year earlier.

Revenue slipped to RM4.81 billion from RM5.13 billion previously, it said in a filing with Bursa Malaysia today.

The downtrend in performance was mainly due to lower investment income of RM99.5 million (-80.6 per cent) in tandem with the current unfavourable market condition, lower fee income and other income of RM45.6 million (-6.9 per cent), and higher operating expenses of RM27.8 million (-2.9 per cent).

These were partially offset by a higher net interest income of RM140.3 million (+7.4 per cent), it said.

The bank said pre-tax profit for hire purchase decreased by 62.4 per cent to RM31.6 million, mainly due to higher loan impairment allowance made in anticipation of the potential effect of the COvid-19 pandemic, while being partially offset by higher net interest income.

Meanwhile, pre-tax profit for treasury and capital market operations dropped 49.7 per cent to RM73.6 million, due to lower net interest income and lower investment income.

Investment banking pre-tax profit eased 48.6 per cent to RM19.7 million, mainly attributed to lower stock-broking income, the bank said.

It also said pre-tax profit for head office, funding centre, and others declined marginally by 0.8 per cent to RM148 million, due to lower investment income, higher operating expenses, and share of loss of an associated company.

In contrast, pre-tax profit for retail operations increased 1.4 per cent to RM1.03 billion, driven by lower loan impairment allowance and higher net interest income.

Corporate lending pre-tax profit increased 111.6 per cent to RM75.1 million, said the bank, attributing this to lower loan impairment allowance.

It said fund management business pre-tax profit went up 14.3 per cent to RM218.6 million mainly due to higher management fees from higher average net asset value of funds and lower other operating expenses.

Similarly, the bank’s overseas operations pre-tax profit improved 18.3 per cent to RM173.3 million due to lower loan impairment allowance and higher net interest income.

In a statement, Public Bank founder and chair emeritus, director and adviser Tan Sri Dr Teh Hong Piow said with its resilient fundamentals, the group remains well placed to navigate any challenges ahead and spur business growth as the country moves toward post-pandemic recovery.

“Despite the continued challenging environment, the Public Bank Group will remain steadfast in its efforts to strengthen its balance sheet, uphold its strong asset quality as well as enhance cost efficiencies further.

“While embracing the changes stemming from the pandemic, the group will continue its pursuit of digital transformation and product innovation to strengthen long-term business growth,” he said.

https://www.malaymail.com/news/money/2021/11/29/public-banks-q3-net-profit-down-2pc-to-rm1.36b/2024549

 

Category: Malaysia

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