Public Bank Bhd · MYX:PBBANK
Public Bank Bhd — Shareholder Meeting (May 2023)
36 slides from Public Bank Bhd's shareholder meeting presentation, May 15, 2023
Slide 1: Public Bank Berhad 57th Annual General Meeting
PUBLIC BANK BERHAD Company Registration No. 196501000672 (6463-H) PUBLIC BANK BERHAD 57TH ANNUAL GENERAL MEETING HELD ON 15 MAY 2023 PRESENTATION SLIDES ON PUBLIC BANK GROUP'S PERFORMANCE IN 2022
Slide 2: Section 1: 2022 Financial Performance
SECTION 1: 2022 FINANCIAL PERFORMANCE 2
Slide 3: Another Profit Milestone in 2022
Achieved ANOTHER PROFIT MILESTONE in 2022 RM8.83 bil PRE-TAX PROFIT 2022 FINANCIAL PERFORMANCE 3
Slide 4: Resilient Performance: Pre-tax and Net Profit
RESILIENT PERFORMANCE PRE-TAX PROFIT NET PROFIT (RM bil) 9.0 RM 8.83 bil (RM bil) 6.0 RM 6.12 bil 8.5 1st RM 5.66 bil 8.2% 8.0 19.9% Time > RM8 bil 5.5 7.5 RM 7.37 bil 5.0 7.0 4.5 6.5 6.0 4.0 2021 2022 2021 2021 2022 2022 2021 2022 2022 FINANCIAL PERFORMANCE 2020 4
Slide 5: Resilient Performance: Earnings Per Share
RESILIENT PERFORMANCE EARNINGS PER SHARE 31.5 sen 2022 29.1 sen 2021 2022 FINANCIAL PERFORMANCE 5
Slide 6: Loans Growth Performance
LOANS GROWTH PERFORMANCE TOTAL GROSS LOANS & FINANCING RM 377 bil 5.3% DOMESTIC LOANS RM 352 bil 5.2% 2022 FINANCIAL PERFORMANCE 6
Slide 7: Leading Market Position
LEADING MARKET POSITION MARKET SHARE IN DOMESTIC RETAIL FINANCING 20.6% 33.4% 30.2% 18.6% Residential Property Commercial Property Hire Purchase SME Financing Financing Financing Financing 2022 FINANCIAL PERFORMANCE 7
Slide 8: Deposits Growth Performance
DEPOSITS GROWTH PERFORMANCE TOTAL CUSTOMER DEPOSITS RM 395 bil 3.8% RM 367 bil DOMESTIC DEPOSITS - 4.1% CURRENT DEPOSITS FIXED DEPOSITS 5.8% 4.2% 2022 FINANCIAL PERFORMANCE 8
Slide 9: Outperform Banking Peers
OUTPERFORM BANKING PEERS COST EFFICIENCY ASSET QUALITY PROFITABILITY COST-TO-INCOME RATIO GROSS IMPAIRED LOANS RATIO NET RETURN ON EQUITY (%) (%) (%) 50 44.2% 1.8 1.7% 13 12.8% 1.6 12.5 40 31.5% 1.4 1.2 12 30 11.5 1 20 0.8 11 10.8% 10 0.6 0.4 0.4% 10.5 10 0.2 0 0 9.5 1st 2022 FINANCIAL PERFORMANCE 9
Slide 10: Major Contributor to the Group's Non-Interest Income
MAJOR CONTRIBUTOR TO THE GROUP’S NON-INTEREST INCOME Public Mutual Repeats Winning Feats At 2022 Morningstar Awards Malaysia! 2022 FINANCIAL PERFORMANCE 2020 10
Slide 11: Public Mutual's Performance
PUBLIC MUTUAL’S PERFORMANCE RETAIL MARKET PUBLIC MUTUAL’S SHARE PRE-TAX PROFIT 35.4% RM780.4 mil CONTRIBUTING TOTAL NET 8.8% ASSETS VALUE RM 91.8 bil 179 UNIT TRUST FUNDS PUBLIC BANK GROUP’S PRE-TAX PROFIT 2022 FINANCIAL PERFORMANCE 2020 11
Slide 12: Pre-emptive Provisions for Potential Asset Quality Risks
PRE-EMPTIVE PROVISIONS FOR POTENTIAL ASSET QUALITY RISKS LOAN LOSS COVERAGE RATIO 272% (%) 300 200 100 0 124% 98% 292%Inclusive of 2019 2022 2022 (pre-pandemic) INDUSTRY regulatory reserves 2022 FINANCIAL PERFORMANCE 2020 12
Slide 13: Healthy Capital and Liquidity Positions
HEALTHY CAPITAL AND LIQUIDITY POSITIONS CAPITAL LIQUIDITY (%) 18 15 14.5% 14.6% 12 CET 1 CAPITAL RATIO (COMMON EQUITY TIER 1) 9 6 7.5% Minimum (%) 140 127% 128% 120 requirement 3 100.0% 0 LIQUIDITY 100 Minimum 2021 2022 COVERAGE 80 requirement RATIO 60 (%) 18 17.7% 17.6% 40 15 20 12 11.0% 0 TOTAL 9
Slide 14: Stable Dividend Payout
STABLE DIVIDEND PAYOUT TOTAL (sen) 18 17.0 sen per share 17 16 15.2 sen per share 15 14 5.0 sen 3rd Interim 13 PAID IN MARCH 2023 12 11 2nd Interim 10 9 4.0 sen PAID IN DECEMBER 2022 8 7 PAYOUT RATIO 53.9% 6 1st Interim 5 4 3 8.0 sen PAID IN SEPTEMBER 2022 2 of the GROUP’S NET PROFIT 1 0 for 2022 20
Slide 15: Stable Dividend Payout
STABLE DIVIDEND PAYOUT TOTAL (sen) 18 17 17.0 sen per share 16 15 14 5.0 sen 3rd Interim 13 PAID IN MARCH 2023 12 11 2nd Interim DIVIDEND YIELD 10 9 4.0 sen PAID IN DECEMBER 2022 8 7 6 1st Interim 5 4 3 8.0 sen PAID IN SEPTEMBER 2022 2 1 0 2022 2022 FINANCIAL PERFORMANCE 15
Slide 16: Share Performance
SHARE PERFORMANCE Continues to deliver consistent and superior returns Increase value for long term shareholders Stable Consistent share performance dividend payout 2022 FINANCIAL PERFORMANCE 16
Slide 17: Market Capitalisation
MARKET CAPITALISATION 2nd LARGEST LARGEST NON GLC on COMPANY on Bursa Bursa Malaysia Malaysia 2022 FINANCIAL PERFORMANCE 17
Slide 18: Section 2: Strategies and Directions for 2023
SECTION 2: STRATEGIES AND DIRECTIONS FOR 2023 18
Slide 19: Challenges in 2023
CHALLENGES IN 2023 Resilient domestic demand Global economic headwinds MODERATE Post • High inflationary pressure GROWTH pandemic business • Tightening of monetary dynamics policy Continue to balance between maintaining managing risks sustainable growth 2023 STRATEGIES AND DIRECTIONS 19
Slide 20: Public Bank's Strategy
PUBLIC BANK’S STRATEGY • Operate efficiently • Sound risk management practices To meet • Maintain prudent credit current • Proactively manage risk management potential asset quality risks challenges • Strong corporate • Provide financial governance assistance to customers facing financial constraint
Slide 21: Sustainability Commitment
SUSTAINABILITY COMMITMENT Establishing Climate–Related Risk Management Policy Set Up Sustainability Roadmap Embedding ESG across the business Sustainability Expand Public Bank’s green and ESG products & services Commitment • financing green properties • financing energy efficient vehicles Set new su
Slide 22: New Sustainability Commitment
NEW SUSTAINABILITY COMMITMENT Energy efficient vehicles financing new increased to RM48 bil 2025 ESG-friendly old financing 2022 2025 RM15 bil Affordable homes financing 2023 STRATEGIES AND DIRECTIONS 22
Slide 23: Digital Transformation
KEY FOCUS DIGITAL TRANSFORMATION • Group’s sustainability agenda • Attentive to digital trends and changes in customer behaviour • Mindful of cybersecurity threats 2023 STRATEGIES AND DIRECTIONS 23
Slide 24: Digitalisation: Expanded Digital Capabilities
DIGITALISATION expanded digital capabilities 2023 STRATEGIES AND DIRECTIONS 24
Slide 25: PB engage and PBe Enriched with New Features
DIGITALISATION PB engage and PBe enriched with new features 2023 STRATEGIES AND DIRECTIONS 25
Slide 26: Mobile Banking Performance
MOBILE BANKING PERFORMANCE PB ENGAGE Number of mobile New users transactions grew by increased by 29.2% 20.9% 2023 STRATEGIES AND DIRECTIONS 26
Slide 27: Online Banking Performance
ONLINE BANKING PERFORMANCE 40.0% increase in number of transactions performed PBe Online Banking PB Enterprise Impressive growth Steady 15.1% growth of 72.5% of new companies active users registered 2023 STRATEGIES AND DIRECTIONS 27
Slide 28: Cybersecurity
CYBERSECURITY Implemented various measures to combat scams 2023 STRATEGIES AND DIRECTIONS 28
Slide 29: Cybersecurity: Dedicated Complaint Channel
CYBERSECURITY Dedicated Complaint Channel 24-hour assistance to customers to report online scams and fraud 2023 STRATEGIES AND DIRECTIONS 29
Slide 30: Cybersecurity: Communication Channels
CYBERSECURITY Updates communication channels to raise cybercrimes awareness 2023 STRATEGIES AND DIRECTIONS 30
Slide 31: Cybersecurity: Secure Digital Token
CYBERSECURITY Replaced with a more secure SMS one-time Digital Token password fully phased out for financial transactions 2023 STRATEGIES AND DIRECTIONS 31
Slide 32: Digitalisation: Public Bank Group Investments
DIGITALISATION THE PUBLIC BANK GROUP significant investments in adopts innovative technology for line with digital roadmap online customer onboarding further enhances • Information and Communication Technology (ICT) infrastructure • digital capability 2023 STRATEGIES AND DIRECTIONS 32
Slide 33: Strategies and Directions: Legacy of Banking Excellence
STRATEGIES AND DIRECTIONS The Late Tan Sri Dato’ Sri Dr Teh Hong Piow LEGACY OF BANKING EXCELLENCE SOLID FOUNDATION His legacy will continue to propel STRONG CORPORATE CULTURE the Group to greater heights 2023 STRATEGIES AND DIRECTIONS 33
Slide 34: Strategies and Directions: Sustainable Earnings Growth
STRATEGIES AND DIRECTIONS Will continue to: • focus on core business segments • achieve sustainable business growth • intensify digital transformation • focus on sustainability agenda • sustain superior asset quality sustainable earnings growth 2023 STRATEGIES AND DIRECTIONS 34
Slide 35: Strategies and Directions: Long Term Value
STRATEGIES AND DIRECTIONS Track record of stable and resilient financial performance with • sound fundamentals will enable the Group • prudent credit practices to continue delivering long term value to its stakeholders 2023 STRATEGIES AND DIRECTIONS 35
Slide 36: Thank You
= ~——= * ——S WBLIC BANK THANK YOU