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Malaysia's Public Bank posts YOY increase in Q2 net profit, ups interim dividend

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Malaysia's Public Bank posts YOY increase in Q2 net profit, ups interim dividend

Malaysia-based Public Bank Bhd. reported a year-over-year increase in net profit for the second quarter ended June 30, as income from operations rose and provisions drop.

The bank said net profit attributable to equity holders increased to 1.40 billion ringgit, or 36.1 sen per share, from 1.33 billion ringgit, or 34.5 sen per share, in the prior-year period.

Net interest income for the quarter rose to 1.88 billion ringgit from 1.84 billion ringgit. Net income from the bank's Islamic banking business increased to 262.6 million ringgit from 247.4 million ringgit. Net fee and commission income climbed to 443.9 million ringgit from 436.1 million ringgit.

Allowance for impairment on loans, advances and financing declined to 17.5 million ringgit from 26.5 million ringgit in the year-ago quarter.

Operating profit for the quarter inched up to 1.78 billion ringgit from 1.77 billion ringgit.

For the first half, the bank's net profit attributable to equity holders increased year over year to 2.80 billion ringgit, or 72.5 sen per share, from 2.58 billion ringgit, or 66.8 sen per share.

The bank mainly attributed the increase in profit to growth in its loan and deposit business and growth in noninterest income.

The group's gross impaired loans ratio clocked in at 0.50% as of June 30, compared to 0.48% as of Dec. 31, 2017.

After deducting interim dividends, the common equity Tier 1 capital ratio rose to 12.707% at the end of June from 12.248% at the end of December 2017. The Tier 1 capital ratio rose to 13.357% from 13.028% at the end of 2017, while the total capital ratio increased to 16.308% from 15.984%.

Further, Public Bank's board declared an interim dividend of 32 sen per share, up from the prior-year dividend of 27 sen per share. The dividend is payable Sept. 19 to the shareholders on record as of Sept. 7.

As of Aug. 14, US$1 was equivalent to 4.09 Malaysian ringgit.