KUALA LUMPUR: Public Bank Bhd’s net profit fell by 3.5% to RM1.65 billion in the first quarter ended 31 March 2024 (1Q24) from RM1.72 billion a year ago.
“The positive impact of the overnight policy rate (OPR) hikes which occurred a year ago did not recur in the quarter under review,” the bank said.
Nonetheless, revenue jumped to RM6.79 billion from RM6.12 billion previously.
Other operating expenses rose by RM104 million mainly due to higher personnel costs while loan impairment allowance increased by RM61.9 million from a low base of RM1.5 million in the previous corresponding quarter.
“However, net interest and Islamic banking income increased by RM74.3 million due to healthy loan growth achieved during the period.
“Non-interest/financing income improved marginally by RM3 million, mainly due to higher income from unit trust business, but this was partially offset by lower investment income and lower foreign exchange income,” it said.
The bank added that profit continued to be supported by healthy loans and customer deposits growth.
Gross loans grew by RM23.7 billion (6.2%) to RM405.3 billion as of 31 March 2024 against RM381.6 billion a year ago, contributed mainly by mortgage financing growth, hire purchase financing and commercial property financing.
Total deposits from customers increased by 4.1% (RM16.5 billion) to RM420.2 billion as of 31 March 2024.
Public Bank Managing Director and Chief Executive Officer Tan Sri Dr Tay Ah Lek said the group continued to sustain a commendable net return on equity of 12.3%, an efficient cost-to-income ratio of 35.4% and a stable asset quality with a gross impaired loan ratio of 0.62% for 1Q24.
“The group will remain vigilant in its business approach and will continue to maintain its prudent risk profile to weather ongoing risks.
“The group will continue to take a proactive approach to embrace growth opportunities and will also continue to pursue digital transformation, further stepping up its environmental, social and governance (ESG) efforts,” he said.
— BERNAMA
