Public Bank Bhd · MYX:PBBANK
Public Bank Bhd — Shareholder Meeting (May 2024)
38 slides from Public Bank Bhd's shareholder meeting presentation, May 8, 2024
Slide 1: Public Bank Berhad 58th Annual General Meeting
PUBLIC BANK BERHAD Company Registration No. 196501000672 (6463-H) PUBLIC BANK BERHAD 58TH ANNUAL GENERAL MEETING HELD ON 8 MAY 2024 PRESENTATION SLIDES ON PUBLIC BANK GROUP’S PERFORMANCE IN 2023
Slide 2: Section 1: 2023 Financial Performance
SECTION 1: 2023 FINANCIAL PERFORMANCE 2
Slide 3: Stable Performance: Pre-tax Profit and Net Profit
STABLE PERFORMANCE PRE-TAX PROFIT NET PROFIT 2023 2023 8.7% RM 8.54 bil 8.54 RM 6.65 bil 2022 2022 RM 8.83 bil 8.83 RM 6.12 bil 6.12 2023 FINANCIAL PERFORMANCE 3
Slide 4: Stable Performance: Earnings Per Share
STABLE PERFORMANCE EARNINGS PER SHARE 2023 2022 2023 FINANCIAL PERFORMANCE 4
Slide 5: Stable Performance: Loans and Deposits, Non-interest income
STABLE PERFORMANCE Loans and Deposits Non-interest income Lower Loan loss allowances 2023 FINANCIAL PERFORMANCE 5
Slide 6: Loans Growth Performance
LOANS GROWTH PERFORMANCE TOTAL GROSS LOANS & FINANCING DOMESTIC 5.9% 5.9% 5.3% GROUP PUBLIC BANK INDUSTRY 2023 FINANCIAL PERFORMANCE 6
Slide 7: Leading Market Position: Market Share
LEADING MARKET POSITION MARKET SHARE 20.4% Item 1 32.6% Item 3 30.5% Item 4 17.9% Item 5 Residential Property Commercial Property Hire Purchase Domestic SME Financing Financing Financing Financing 2023 FINANCIAL PERFORMANCE 2020 2022 7
Slide 8: Deposits Growth Performance
DEPOSITS GROWTH PERFORMANCE TOTAL CUSTOMER DEPOSITS GROUP DOMESTIC GROWTH RATE GROWTH RATE 4.6% FIXED DEPOSITS : 54.4% 4.8% CURRENT ACCOUNT : 16.9% SAVINGS ACCOUNT : 11.5% CORE CUSTOMER DEPOSITS 82.8% 2023 FINANCIAL PERFORMANCE 2020 2022 8
Slide 9: Outperform Banking Peers
OUTPERFORM BANKING PEERS COST EFFICIENCY ASSET QUALITY PROFITABILITY DOMESTIC GROSS IMPAIRED COST-TO-INCOME RATIO NET RETURN ON EQUITY LOANS RATIO (%) (%) (%) 60 1.8 1.6% 14 13.0% 50 48.3% 1.6 12 1.4 10.0% 40 33.7% 1.2 10 8 1 30 0.8 6 20 0.6 0.4 0.4% 4 10 2 0.2 0 0 0 PUBLIC BANK INDUSTRY PUBLIC BANK
Slide 10: Major Contributor Non-Interest Income
MAJOR CONTRIBUTOR NON-INTEREST INCOME 2023 FINANCIAL PERFORMANCE 10
Slide 11: Public Mutual's Performance
PUBLIC MUTUAL’S PERFORMANCE LARGEST TOTAL ASSETS UNDER PRE-TAX PROFIT UNIT TRUST FUNDS RETAIL PRIVATE MANAGEMENT MARKET SHARE RM 798 mil 35.9% RM 97.1 bil 182 2.3% 2023 FINANCIAL PERFORMANCE 2020 2022 11
Slide 12: Sufficient Pre-emptive Provisions: Loan Loss Coverage Ratio
SUFFICIENT PRE-EMPTIVE PROVISIONS LOAN LOSS COVERAGE RATIO 213% Inclusion of regulatory reserves 124% 182% 92% 2019 2023 Industry (pre-pandemic) 2023 FINANCIAL PERFORMANCE 2020 2022 12
Slide 13: Stable & Healthy Capital & Liquidity Positions
STABLE & HEALTHY CAPITAL & LIQUIDITY POSITIONS CAPITAL LIQUIDITY 14.6% 14.7% GROUP CET 1 CAPITAL RATIO (COMMON EQUITY TIER 1) 7.5% Minimum 128% 137% requirement LIQUIDITY 100.0% COVERAGE Minimum 2022 2023 RATIO requirement 17.6% 17.6% 11.0% GROUP TOTAL Minimum 2022 2023 CAPITAL RATIO requirement 202
Slide 14: Stable Dividend Payout: Payout Ratio
STABLE DIVIDEND PAYOUT TOTAL 19 SEN PER SHARE 17 SEN PER SHARE 10 SEN 2ND INTERIM PAID IN MARCH 2024 PAYOUT RATIO 9 SEN 1ST INTERIM 55.5% PAID IN SEPTEMBER 2023 2022 2023 2023 FINANCIAL PERFORMANCE 2020 2022 14
Slide 15: Stable Dividend Payout: Dividend Yield
STABLE DIVIDEND PAYOUT TOTAL 19 SEN PER SHARE 10 SEN 2ND INTERIM DIVIDEND YIELD PAID IN MARCH 2024 9 SEN 1ST INTERIM PAID IN SEPTEMBER 2023 2023 2023 FINANCIAL PERFORMANCE 15
Slide 16: Committed to Deliver Consistent and Superior Returns
STABLE PERFORMANCE Committed to deliver consistent and superior returns ENHANCE LONG-TERM VALUE OF SHAREHOLDERS CONSISTENT DIVIDEND PAYOUT STABLE SHARE PERFORMANCE 2023 FINANCIAL PERFORMANCE 2020 2022 16
Slide 17: Market Capitalisation
MARKET CAPITALISATION 2nd LARGEST COMPANY on Bursa Malaysia LARGEST NON GLC on Bursa Malaysia 2023 FINANCIAL PERFORMANCE 2020 2022 17
Slide 18: Section 2: Strategies and Directions for 2024
SECTION 2: STRATEGIES AND DIRECTIONS FOR 2024 18
Slide 19: Challenges in 2024
CHALLENGES IN 2024 Continue to be vigilant and agile to balance Growth Risks Persistent Geopolitical Risks Global Economic Headwinds 2024 STRATEGIES AND DIRECTIONS 19
Slide 20: Stable Malaysian Economy in 2024
STABLE MALAYSIAN ECONOMY IN 2024 Stable Malaysian Domestic economy demand Driving business growth through opportunities 2024 STRATEGIES AND DIRECTIONS 20
Slide 21: Strategic Initiatives Generate Sustainable Profit
STRATEGIC INITIATIVES SUSTAIN MARKET LEADERSHIP • Keep up with market FINANCIAL STRENGTH & STABILITY development • Remain well-capitalised GENERATE • Sustain leading and well-funded market share SUSTAINABLE PROFIT • Resilient asset quality • Financing • Deposit • Prudent loan loss • Unit Trust reser
Slide 22: Overseas Expansion in Indo-China
OVERSEAS EXPANSION IN INDO-CHINA Public Bank Vietnam • New branches: 8 • Total branches: 40 Total branches in Indo-china: 76 Well-positioned to capture business opportunities 2024 STRATEGIES AND DIRECTIONS 22
Slide 23: Sustainability Roadmap
SUSTAINABILITY ROADMAP 2020 2030 RM 100 bil target for sustainable finance RM 53 bil mobilised sustainable finance Energy-efficient vehicles Affordable homes Corporate loans Green Financing facilities 2024 STRATEGIES AND DIRECTIONS 23
Slide 24: Sustainability Commitment
SUSTAINABILITY COMMITMENT ESG Integration in Banking Services Support BNM’s Value-Based Intermediation Initiative Sustainability Commitment • Incorporated climate risk assessment process Joined Carbon Accounting Financials • Identified new Green Financing • towards net zero carbon commitment opportu
Slide 25: Contribution to Community Well-being
CONTRIBUTION TO COMMUNITY WELL-BEING Healthcare Education Environmental Awareness ST Bank in Malaysia: Participate in Eco-Schools Programme 2024 STRATEGIES AND DIRECTIONS 25
Slide 26: Digital Transformation
SUSTAINABILITY AGENDA DIGITAL TRANSFORMATION • Enhanced digital capabilities to meet customer expectations • Enriched Public Bank’s mobile and internet banking 2024 STRATEGIES AND DIRECTIONS 26
Slide 27: Introduction of MyPB App
INTRODUCTION OF MYPB APP • Launched in November 2023 • Lifestyle & complementary services • Enhanced features Seamless digital applications for: • Credit cards • Home loans/financing • Vehicle financing 2024 STRATEGIES AND DIRECTIONS 27
Slide 28: Mobile Banking Performance
MOBILE BANKING PERFORMANCE New users Active mobile users Commendable growth Impressive increase 37.3% 89.1% 2024 STRATEGIES AND DIRECTIONS 28
Slide 29: Online Banking Performance
ONLINE BANKING PERFORMANCE PBe Online Banking PB Enterprise 21.9% New company user 3.4% New user 41.7% Transactions volume 2024 STRATEGIES AND DIRECTIONS 29
Slide 30: Cybersecurity
CYBERSECURITY Embracing FinTech Opportunities, Managing Cybersecurity Risks 2024 STRATEGIES AND DIRECTIONS 30
Slide 31: Cybersecurity: Measures to Safeguard Customers
CYBERSECURITY Measures to • Cooling-off period for abnormal transactions safeguard customers’ online banking • Migration to Public Bank SecureSign • Introducing ‘KILL-SWITCH' for account deactivation 2024 STRATEGIES AND DIRECTIONS 31
Slide 32: Cybersecurity: Customers Prevented from Being Scammed
CYBERSECURITY PREVENTED >940,000 customers & TOTALLING about RM 1.5 bil from being scammed 2024 STRATEGIES AND DIRECTIONS 32
Slide 33: You Hold the Key to Your Financial Safety
CYBERSECURITY MAINTAIN HIGH LEVEL OF VIGILANCE YOU HOLD THE KEY TO YOUR FINANCIAL SAFETY 2024 STRATEGIES AND DIRECTIONS 33
Slide 34: Rules of Thumb to Protect Yourself
CYBERSECURITY RULE 1: Protect your personal PREVENTED information RULE 2: Cut and block RULES suspicious calls RULE 3: OF THUMB Call your bank or TO PROTECT dial 997 for HELP YOURSELF if scammed 2024 STRATEGIES AND DIRECTIONS 34
Slide 35: Avoid Investment Schemes
CYBERSECURITY AVOID INVESTMENT SCHEMES with promise of UNREALISTIC HIGH INCOME Consult your bankers to avoid being scammed 2024 STRATEGIES AND DIRECTIONS 35
Slide 36: Honouring Legacy
HONOURING LEGACY Public Bank Group will continue to forge ahead • Building on Banking Excellence • Honouring Legacy of our Late Chairman Emeritus Tan Sri Dato’ Sri Dr Teh Hong Piow 2024 STRATEGIES AND DIRECTIONS 36
Slide 37: Strategies and Directions: Future Focus
STRATEGIES AND DIRECTIONS PUBLIC BANK GROUP’S FUTURE FOCUS: • Strengthen Retail & Commercial Banking Business • Drive Digital Transformation • Commit to Sustainability • Stay Vigilant and Agile • Adapt & Ensure Sustainable Value 2024 STRATEGIES AND DIRECTIONS 37
Slide 38: Thank You
PUBLIC BANK THANK YOU 38