KUALA LUMPUR – Public Bank posted a net profit of RM1.36 billion in the third quarter ending September 30, 2021, down about 2% 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%) in tandem with the current unfavourable market condition, lower fee income and other income of RM45.6 million (-6.9%), and higher operating expenses of RM27.8 million (-2.9%).
These were partially offset by a higher net interest income of RM140.3 million (+7.4%), it said.
The bank said pre-tax profit for hire purchase decreased by 62.4% 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% to RM73.6 million due to lower net interest income and lower investment income.
Investment banking pre-tax profit eased 48.6% to RM19.7 million, mainly attributed to lower stockbroking income, the bank said.
It also said pre-tax profit for head office, funding centre, and others declined marginally by 0.8% 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% to RM1.03 billion, driven by lower loan impairment allowance and higher net interest income.
Corporate lending pre-tax profit increased 111.6% 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% 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% to RM173.3 million due to lower loan impairment allowance and higher net interest income.
In a statement, Public Bank founder and chairman 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. – Bernama, November 29, 2021
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