Malaysia Public Bank Posts RM6.55 Billion Pre-Tax Profit in FY16

Kuala Lumpur, Malaysian Public Bank Bhd's pre-tax profit for the financial year ended December 31, 2016 rose to RM6.55 billion from RM6.49 billion in 2015.

Revenue increased to RM20.10 billion during the period under review from RM19.20 billion previously, it said in a filing to Bursa Malaysia today.

Founder/Chairman Tan Sri Dr Teh Hong Piow attributed the results to the group's proactive organic growth strategy and prudent banking practices, which remained an edge in the current competitive banking landscape, according to ( BERNAMA) news agency.

"The group demonstrated the ability to generate stable profitability amid increasing and challenging operating environment," he said.

Teh said the bank continued to be at the forefront amongst its domestic banking peers by delivering high net return on equity at 16.5% and maintaining low gross impaired loan ratio of 0.5%, as well as efficient cost-to-income ratio of 32.3% in 2016, Malaysian news agency Bernama reported.

The group recorded a total loan growth of 7.5%, with domestic loan growth at 7.2% compared with the banking industry's domestic loan growth of 5.3%, and an increased market share of 17.7% in the domestic lending market.

Total deposits from customers rose 2.9% to RM310 billion.

The group's total net income grew 4.3% to RM9.96 billion, supported by continued growth in net interest income and fee commission income.

Pre-tax profit for the group's overseas operations increased 8.5% from RM572 million in 2015 to RM621 million in 2016, contributing 9.5% to the group's overall pre-tax profit for 2016.

In view of the bank's favourable performance in 2016, Teh said the board of directors declared a second interim dividend of 32 sen, taking the full-year dividend for 2016 to 58 sen.

Source: Qatar News Agency