Investor Presentation
March 2024 Financial Results
www.publicbankgroup.com
Profit before tax (RM'bil)
1Q24 profit performance mainly driven by top-line growth with |
Q1 2024
↓3.5%
2.21 | 2.13 |
Q1 2023 | Q1 2024 |
↑3.1%
2.07 | 2.13 |
Q4 2023 | Q1 2024 |
steady NIM of 2.21% | |
| Both loans and deposits posted favourable annualised growth rates |
of 6.3% and 7.1% respectively | |
Resilient ROE of 12.3%; Low credit cost of 6 basis points | |
| Sound asset quality; gross impaired loans ratio remained low at |
Financial
Net profit (RM'bil)
Highlights
↓3.5%
↑2.3%
0.62% and loan loss coverage ratio at 168.7% |
Capital and liquidity position remained solid |
1Q24 pre-tax profit rose 3.1%
Q1 2023 | Q1 2024 |
Q4 2023 | Q1 2024 |
Cost-to-income
Net ROE
ratio
35.4% |
Gross impaired
loans ratio
NIM
2.21%
q-o-q but decrease 3.5% y-o-y to RM2.1 billion
Gross loans (RM'bil) | |
↑6.3%* | |
399.0 | 405.3 |
Dec-23 | Mar-24 |
which: | Domestic operations | |
↑5.9%* | ||
Of | 372.7 | 378.2 |
Dec-23 | Mar-24 |
12.3% | |
Dec-23: 33.7% | |
Dec-23: 13.0% | |
Loan loss | |
Credit cost | coverage ratio |
ratio |
0.62%
Dec-23: 0.59%
Liquidity
coverage ratio
Dec-23: 2.20%
Total capital
ratio
Customer deposits (RM'bil)
↑7.1%*
412.9 420.2
Domestic operations
Ofwhich: | ↑7.3%* | |
384.9 | 391.9 |
168.7% |
0.06% |
Dec-23: 181.8% |
Dec-23: 0.04% |
136.5%
Dec-23: 136.8%
17.4%
Dec-23: 17.6%π
Dec-23Mar-24
Dec-23 | Mar-24 |
* Annualised growth
π After deducting interim dividends declared subsequent to end of period/year
2
Profitability
1Q24 profit performance mainly fuelled by higher net interest income, non-interest income and income from Islamic banking business
Income Statement
(RM'mil) | Q1 2023 | Q1 2024 | y-o-y | Q4 2023 | q-o-q | |
Net interest income | 2,259.4 | 2,317.5 | 2.6% | 2,299.9 | 0.8% | |
Net income from Islamic banking | 397.1 | 413.3 | 4.1% | 358.3 | 15.3% | |
business | ||||||
Non-interest income | ||||||
646.6 | 649.6 | 0.5% | 601.9 | 7.9% | ||
Net income | 3,303.1 | 3,380.4 | 2.3% | 3,260.1 | 3.7% | |
Other operating expenses | (1,094.1) | (1,198.1) | 9.5% | (1,101.6) | 8.8% | |
Operating profit | 2,209.0 | 2,182.3 | -1.2% | 2,158.5 | 1.1% | |
Loan loss allowance | (1.5) | (63.4) | >100.0% | (97.0) | -34.6% | |
Other allowances | 1.7 | (1.4) | >100.0% | (6.8) | -79.2% | |
Share of (loss)/profit after tax of | ||||||
equity accounted associated | (0.2) | 14.2 | >100.0% | 12.9 | 9.9% | |
companies | ||||||
Profit before tax | 2,209.0 | 2,131.7 | -3.5% | 2,067.6 | 3.1% | |
Net profit attrib. to shareholders | 1,714.0 | 1,653.3 | -3.5% | 1,615.5 | 2.3% | |
Earnings per share (sen) | 8.83 | 8.52 | -3.5% | 8.32 | 2.4% | |
3
Net
Interest
Income &
Margin
Improved
NIM underpinned by proactive management of cost of funds
2.42 | 2.58 | ||||||||||
2.28 | 2.26 | 2.18 | 2.24 | 2.29 | 2.26 | 2.18 | 2.21 | 2.21 | |||
2.15 | 2.15 |
Net Interest and Finance Income (RM'mil) | Net Interest Margin (%) | |
2,443 | 2,490 | 2,635 | 2,708 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
2021 | 2022 | 2023 | Q1 2024 | |
Year Average NIM | 2.22% | 2.39% | 2.20% | 2.21% |
4
Non-
Interest
Income
Non-interest income increased by 0.5% y-o-y and 7.9% q-o-q
(RM'mil) | Composition | Q1 2023 | Q1 2024 | y-o-y | Q4 2023 | q-o-q | ||
Net fee and commission | 482.3 | 534.5 | 10.8% | 487.5 | 9.6% | |||
Of which: - Unit trust income | ||||||||
48% | 260.6 | 310.8 | 19.3% | 274.0 | 13.4% | |||
- Fee & commission income | ||||||||
28% | 177.5 | 182.0 | 2.5% | 186.3 | -2.3% | |||
- Stockbroking income | ||||||||
6% | 44.2 | 41.7 | -5.7% | 27.2 | 53.2% | |||
Net gains and losses on | 2% | 44.9 | 15.1 | -66.4% | 12.1 | 24.5% | ||
financial instruments | ||||||||
Other operating income | 119.4 | 100.0 | -16.2% | 102.3 | -2.2% | |||
Of which: - Foreign exchange income | ||||||||
11% | 89.7 | 72.2 | -19.5% | 79.8 | -9.4% | |||
- Others | ||||||||
5% | 29.7 | 27.8 | -6.2% | 22.5 | 23.3% | |||
Total non-interest income | 100% | 646.6 | 649.6 | 0.5% | 601.9 | 7.9% | ||
Non-interest income/Total income | 19.6% | 19.2% | 18.5% | |||||
5
Segmental Profit
Profit growth was observed across the majority of operating segments, with retail operations accounting for 50% of profits
Profit before tax by Operating Segments
(RM'mil) | Composition | Q1 2023 | Q1 2024 | y-o-y | Q4 2023 | q-o-q |
Retail operations | 50% | 1,042.0 | 1,064.3 | 2.1% | 1,125.9 | -5.5% |
Hire purchase | 9% | 166.8 | 191.5 | 14.8% | 159.3 | 20.3% |
Fund management | 10% | 192.6 | 214.6 | 11.4% | 205.2 | 4.6% |
Corporate lending | 9% | 145.2 | 181.7 | 25.2% | 126.5 | 43.6% |
Treasury operations | 0% | 27.2 | (5.8) | >-100.0% | 66.1 | >-100.0% |
Investment banking | <1% | 13.4 | 18.3 | 36.7% | 14.0 | 30.8% |
Others | 16% | 442.1 | 333.6 | -24.6% | 353.3 | -5.6% |
Overseas operations | 6% | 179.7 | 133.5 | -25.7% | 17.3 | >100.0% |
Profit before tax | 100% | 2,209.0 | 2,131.7 | -3.5% | 2,067.6 | 3.1% |
6
Retail Operations
Improved net income from
Retail Operations
(RM'mil) | Q1 2023 | Q1 2024 | y-o-y | |
Net interest income | 1,427.5 | 1,530.9 | 7.2% | |
Non-interest income | ||||
191.0 | 215.6 | 12.9% | ||
Net income | 1,618.5 | 1,746.5 | 7.9% | |
Other operating expenses | ||||
(585.3) | (647.8) | 10.7% | ||
Writeback/(Allowance) for impairment on loans and | ||||
8.8 | (34.4) | >100.0% | ||
other assets | ||||
Profit before tax | 1,042.0 | 1,064.3 | 2.1% | |
retail operations helped buffer against higher other operating expenses and loan impairment allowances
Loans & Deposit-taking (RM'bil)
251.0 294.1 | 262.0 297.8 | 265.2 312.0 |
20222023Mar-24
Gross Loan | Deposit | |
Gross Impaired Loans (RM'mil)
0.25% 0.33% 0.37%
877.0 992.2
623.4
20222023Mar-24
Gross Impaired Loans
Gross Impaired Loans Ratio
7
Hire Purchase and Corporate Lending
HP business propelled by robust loan growth;
Write-back of loan impairment allowances boosted corporate lending earnings
Hire Purchase
(RM'mil) | Q1 2023 | Q1 2024 | y-o-y |
Net interest income | 227.5 | 279.8 | 23.0% |
Non-interest income | 0.2 | 0.2 | -31.2% |
Net income | 227.7 | 280.0 | 23.0% |
Other operating expenses | (69.1) | (75.1) | 8.6% |
Writeback/(Allowance) for | |||
impairment on loans and | 8.2 | (13.4) | >100.0% |
other assets d | |||
Profit before tax | 166.8 | 191.5 | 14.8% |
Gross Loans (RM'bil)
58.3 64.6 67.4
2022 2023 Mar-24
Gross Impaired Loans (RM'mil)
GIL ratio | 0.25% | 0.26% | 0.21% |
143.7 167.9 144.6
2022 2023 Mar-24
Corporate Lending
(RM'mil) | Q1 2023 | Q1 2024 | y-o-y |
Net interest income | 144.4 | 148.7 | 3.0% |
Non-interest income | 1.9 | 6.9 | >100.0% |
Net income | 146.3 | 155.6 | 6.4% |
Other operating expenses | (5.3) | (5.8) | 9.7% |
Writeback of allowance for | |||
impairment on loans and | 4.2 | 31.9 | >-100.0% |
other assets | |||
Profit before tax | 145.2 | 181.7 | 25.2% |
Gross Loans (RM'bil)
42.2 45.6 45.0
2022 2023 Mar-24
Gross Impaired Loans (RM'mil) | ||||
0.99% | 0.97% | 0.94% | ||
GIL ratio | 1.00% | |||
0.50% | ||||
418.1 | 443.5 | 422.4 | 0.00% | |
-0.50% | ||||
-1.00% | ||||
2022 | 2023 | Mar-24 | ||
8
Public Mutual Berhad
Wealth Management
Trust Business
Profit Before Tax (RM'mil)
↑11.4%
202.0 192.6 214.6
Net Asset Value of Funds Under Management (RM'bil)
100.4 | Retail Market | ||||
91.8 | 97.1 | Share: | |||
21.4 | 35.8% | ||||
21.4 | |||||
21.2 | |||||
NAV - Other Funds | |||||
70.6 | 75.7 | 79.0 | NAV - Equity Funds | ||
Public Mutual's pre-tax profit rose 11.4% y-o-y, with NAV surpassing RM100 billion ;
Bancassurance business continued to gain traction
Of which: Unit
Q1'22 | Q1'23 | Q1'24 | 2022 | 2023 | Mar-24 |
Business | Annualised New Premium (RM'mil) | |||
406.7 | 439.3^ | |||
Bancassurance | ||||
108.1 | Q1 | |||
which: | 93.1 | 121.0^ | 108.1 | |
2022 | 2023 | Q1'24 | ||
Of | ||||
^ Restated | 9 |
Other
Operating
Expenses
Sustaining efficient cost management, with CIR well below the industry average
(RM'mil) | Composition | Q1 2023 | Q1 2024 | y-o-y | Q4 2023 | q-o-q |
Personnel costs | 74% | 787.6 | 885.8 | 12.5% | 803.2 | 10.3% |
Establishment costs | 18% | 201.5 | 209.2 | 3.8% | 203.5 | 2.8% |
Marketing expenses | 2% | 27.9 | 28.9 | 3.7% | 23.4 | 23.4% |
Administration and general expenses 6% | 77.2 | 74.2 | -3.8% | 71.5 | 3.9% | |
Total other operating expenses | 100% | 1,094.2 | 1,198.1 | 9.5% | 1,101.6 | 8.8% |
Industry: | ||||||||||||||||||||||||||||
48.7% | ||||||||||||||||||||||||||||
35.7% | 31.8% | 33.2% | 33.1% | 35.4% | ||||||||||||||||||||||||
100% | ||||||||||||||||||||||||||||
90% | ||||||||||||||||||||||||||||
80% | ||||||||||||||||||||||||||||
70% | ||||||||||||||||||||||||||||
60% | ||||||||||||||||||||||||||||
1,043 | 1,094 | 1,198 | 50% | |||||||||||||||||||||||||
1,000 | 1,028 | 40% | ||||||||||||||||||||||||||
30% | ||||||||||||||||||||||||||||
20% | ||||||||||||||||||||||||||||
10% | ||||||||||||||||||||||||||||
0% | ||||||||||||||||||||||||||||
Q1 2020 | Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 | ||||||||||||||||||||||||
Total Other Operating Expenses (RM'mil) | Cost-to-income ratio | |||||||||||||||||||||||||||
10
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Disclaimer
Public Bank Bhd published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 05:07:07 UTC.