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.