PETALING JAYA: Public Bank Bhd posted a 14% rise in net profit for the second quarter of 2023 ended June 30 (Q2 FY2023) to a hefty RM1.62 billion from RM1.42 billion in the same period last year on the back of sustained growth in loans and deposits as well as effective cost management.
In a filing with Bursa Malaysia today, the banking group reported a rise in quarterly revenue to RM6.26 billion, marking a 26% increase from RM4.97 billion in the previous year.
Earnings per share rose to 8.34 sen, from 7.30 sen previously. The group declared a dividend of nine sen per share.
For the first half of 2023 (H1 FY2023), the bank recorded an 18.1% rise in net profit to RM3.33 billion from RM2.82 billion in the same period last year.
This growth was supported by a revenue of RM12.39 billion compared with RM9.86 billion in H1 FY2022.
The group also noted its profit was bolstered by robust expansion in both loan portfolio and customer deposits. Gross loans registered a growth of 5.2% or RM19.2 billion to RM387.2 billion from RM368 billion the previous year. This increase was attributed to the upswing in mortgage and hire purchase financing.
Concurrently, total customer deposits also saw a 4.7% uptick or RM18.2 billion to RM406.5 billion as of June 30, 2023.
In a statement, Public Bank managing director and CEO Tay Ah Lek said there was a 3.4% rise in net interest income, driven by the expansion of the loan and deposit divisions, which experienced yearly growth rates of 5.4% and 6% respectively.
He added non-interest revenue was up 5.4%, supported by increased earnings from foreign exchange and stock brokerage operations.
Given the ongoing growth of the Malaysian economy, he said the banking industry’s outlook for business opportunities remains optimistic, coupled with increasing prospects, arising from the increasing demand for digital banking and environmental, social and governance (ESG) products.
At the close of trade, Public Bank’s share price was up six sen or 1.47% to RM4.14, valuing the group at RM80.36 billion.