KUALA LUMPUR: Public Bank Group’s pre-tax profit for financial year 2022 (FY22) increased by 19.9% to RM8.83 billion, surpassing the RM8 billion mark for the first time.
Net profit attributable to shareholders increased by 8.2% to RM6.12 billion after taking into account the one-off impact of prosperity tax.
The group sustained a resilient net return on equity of 12.8% and efficient cost-to-income ratio of 31.5%.
On asset quality, gross impaired loans ratio remained low and healthy at 0.4% as at the end of 2022.
Public Bank managing director and CEO Tan Sri Dr Tay Ah Lek said in a statement today: “In view of the resilient financial performance in 2022, the Board of Directors of Public Bank declared a third interim dividend of 5.0 sen per share.”
The third interim dividend will be paid on March 22 based on the entitlement date of March 14. Together with the first and the second interim dividends totalling 12 sen per share declared earlier, the full-year dividend for 2022 amounts to 17 sen. This represents a total dividend payout of RM3.3 billion or 53.9% of the group’s net profit for 2022.
In 2022, Public Bank Group’s total loans expanded by 5.3% to RM376.9 billion. Domestic loans grew by 5.2% to RM352.1 billion, mainly contributed by growth in residential properties financing of 7.5% and hire purchase financing of 8.9%.
Total domestic loan approvals rose by 18.8% in 2022, further strengthening the group’s leading market share in the residential properties and hire purchase financing which stood at 20.6% and 30.2% respectively. The group also continued to maintain a leading market share of 18.6% in the domestic SME lending.
Total customer deposits grew by 3.8% to RM394.7 billion in 2022. Domestic deposits rose by 4.1% to RM367.1 billion, mainly supported by current accounts and fixed deposits which grew by 5.8% and 4.2% respectively.
Public Bank Group continued to maintain a healthy balance sheet with a gross loan to fund and equity ratio of 81.1% as at the end of 2022.
Last year, the group’s unit trust business undertaken by wholly owned subsidiary Public Mutual remained the main contributor to the group’s non-interest income. Public Mutual recorded a pre-tax profit of RM780.4 million in 2022, contributing 8.8% to the group’s profit. As at the end of December 2022, Public Mutual continued to capture a large retail market share of 35.4%, with a total of 179 unit trust funds and total assets under management of RM91.8 billion.
On outlook, Tay said, “The persisting economic challenges will continue to have spillover effects on the banking sector. Consumer and business sentiments will continue to be affected by the high inflationary pressure and softening global growth. However, outlook on the Malaysian economy remains positive, and this will continue to support a conducive environment for banking business growth.”
He added that as the group continues to grow its retail and commercial banking business, it will remain focused on digital transformation, sustainability agenda as well as staff upskilling and reskilling, to ensure sustainable earnings growth and safeguard stakeholders’ interests at all times.