Public Bank Bhd · MYX:PBBANK
Public Bank Bhd — 1H 2024 Earnings Presentation
20 slides from Public Bank Bhd's earnings presentation, June 2024
Slide 1: Investor Presentation June 2024 Financial Results
Investor Presentation June 2024 Financial Results www.publicbankgroup.com
Slide 2: Financial Highlights
Profit before tax (RM’bil) 1H2024 profitability driven by both interest and non-interest income Commendable loans and deposits growth, expanding by 6.0% and ↑2.5% ↑7.0% 5.8% respectively on an annualised basis 4.30 4.41 2.13 2.28 Net return on equity of 12.8% Gross impaired loans remained so
Slide 3: Dividend Payout
Dividend Payout Gross dividend per share --------------- 13.0 sen 15.2 sen 17.0 sen 19.0 sen 10.0 sen Dividend payout ratio ------------------- 51.8% 52.2% 53.9% 55.5% 56.5% Dividend Payout 1,747 1,941 1,494 - 2H Dividends Paid / Declared (RM’mil) 2,523 1H 1,747 1,941 Higher first 1,456 1,553 interi
Slide 4: Profitability
Income Statement (RM’mil) 1H 2023 1H 2024 y-o-y Q1 2024 Q2 2024 q-o-q Net interest income 4,470.0 4,635.5 3.7% 2,317.5 2,318.0 0.0% Net income from Islamic 792.5 830.2 4.8% 413.3 417.0 0.9% banking business Profitability Non-interest income 1,251.9 1,324.4 5.8% 649.6 674.7 3.9% Net income 6,514.4 6,
Slide 5: Net Interest Income & Margin
2.58 2.29 2.42 2.24 2.26 2.18 2.21 2.15 2.21 2.19 Net Interest Net Interest and Finance Income (RM'mil) Net Interest Margin (%) Income & 2,615 2,583 2,715 Margin Stable NIM due to effective management of loan portfolio and Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 funding costs 2022 2023 1H 2024 Year Average NI
Slide 6: Non-Interest Income
(RM’mil) Composition 1H 2023 1H 2024 y-o-y Q1 2024 Q2 2024 q-o-q Non- Net fee and commission 960.4 1,075.7 12.0% 534.5 541.2 1.3% Of which: - Unit trust income 47% 530.7 617.0 16.3% 310.8 306.2 -1.5% Interest Income - Fee & commission income 27% 358.5 355.7 -0.8% 182.0 173.7 -4.5% - Stockbroking inc
Slide 7: Segmental Profit
Profit before tax by Operating Segments (RM’mil) Composition 1H 2023 1H 2024 y-o-y Q1 2024 Q2 2024 q-o-q Segmental Retail operations 52% 1,989.7 2,288.5 15.0% 1,064.3 1,224.2 15.0% Profit Hire purchase 9% 408.2 377.6 -7.5% 191.5 186.1 -2.8% Fund management 10% 387.6 428.3 10.5% 214.6 213.7 -0.5% Ret
Slide 8: Retail Operations
Retail Operations (RM’mil) 1H 2023 1H 2024 y-o-y Net interest income 2,832.3 3,074.3 8.5% Non-interest income 378.2 418.4 10.6% Retail Net income 3,210.5 3,492.7 8.8% Operations Other operating expenses (1,192.2) (1,277.3) 7.1% (Allowance) / writeback of allowance for impairment (28.6) 73.1 >-100.0%
Slide 9: Hire Purchase and Corporate Lending
Hire Purchase Corporate Lending (RM’mil) 1H 2023 1H 2024 y-o-y (RM’mil) 1H 2023 1H 2024 y-o-y Net interest income 458.2 567.2 23.8% Net interest income 295.4 295.1 -0.1% Non-interest income 0.7 0.6 -19.9% Non-interest income 10.3 15.3 49.5% Hire Net income 458.9 567.8 23.7% Net income 305.7 310.4 1.
Slide 10: Wealth Management and Bancassurance Business
Public Mutual Berhad Profit Before Tax (RM’mil) Net Asset Value of Funds Under Management (RM’bil) Retail Market ↑10.5% 102.8 91.8 97.1 Share: Wealth 21.2 21.4 21.7 35.7% Of which: Unit Trust Business Management 392.2 387.6 428.3 NAV - Other Funds 75.7 81.1 70.6 NAV - Equity Funds Public Mutual achi
Slide 11: Other Operating Expenses
(RM’mil) Composition 1H 2023 1H 2024 y-o-y Q1 2024 Q2 2024 q-o-q Personnel costs 73% 1,581.4 1,757.4 11.1% 885.8 871.6 -1.6% Establishment costs 18% 406.0 436.5 7.5% 209.2 227.3 8.7% Other Marketing expenses 3% 58.0 58.0 0.0% 28.9 29.1 0.6% Operating Administration and general expenses 6% 147.0 145.
Slide 12: Gross Loan in Domestic Operations
Loans – Outstanding Balance and Market Share Loans – By Segment 17.4% 17.5% 17.5% Others, Group Loan (RM'bil) <1% 399.0 411.0 376.9 Overseas 383.7 Operations, Loan Domestic Loan (RM'bil) 352.1 372.7 7% Jun-24 Growth Domestic Loan Market Share Corporate Lending, RM411.0 bil 11% Retail 2022 2023 Jun-2
Slide 13: Asset Quality
Group Gross Impaired Loans Domestic Operations Pre-pandemic: 0.6% 0.6% Residential properties Commercial properties Transport vehicles Industry: 0.5% Industry: 0.8% 0.5% 0.4% 0.4% 0.5% 1.51% 0.4% 1.60% 0.3% 0.6% 0.6% 0.3% 0.3% 0.2% 0.3% 0.4% 0.2% 0.4% 0.3% 681 Asset 2,335 2,623 617 538 602 455 507 2
Slide 14: Total Deposit in Domestic Operations
Deposit – Outstanding Balance and Market Share Deposit – By Type 16.5% Money 16.3% 16.3% Market Fixed 424.9 Deposit and Deposit, 394.7 412.9 Jun-24 Others, 15% 57% Group Deposit (RM'bil) RM424.9 bil 367.1 384.9 395.1 Deposit Domestic Deposit (RM'bil) Demand Deposit, 17% Savings Deposit, 11% Growth D
Slide 15: Capital & Liquidity Position
Capital Adequacy Liquidity Risk Indicators Industry Industry Total capital: LCR: 17.7% 17.6% 17.6% 17.4% 17.9% 155.2% 18.0% 17.1% 138.0% 136.8% 138.5% 127.3% 127.7% Industry Industry 16.0% Capital & 14.0% 14.6% 14.6% 14.7% 14.5% Tier I: 14.8% 91.4% 92.9% 93.1% LTF: 82.8% 14.0% 90.2% 90.1% Liquidity
Slide 16: Business Delivery Channel
2022 2023 Jun-24 Malaysian Operations Public Bank - Domestic 260 260 260 - Overseas 7 7 3* Business Public Islamic Bank 4 4 4 Public Mutual 28 28 28 Delivery Public Investment Bank 1 1 1 Channel Hong Kong & China Operations Public Finance 42 40 40 Public Bank (HK) - Hong Kong 32 30 30 - China 5 5 5
Slide 17: Strategic Direction
Corporate To sustain the position of being the most efficient, profitable and respected premier financial institution in Mission Malaysia Strategic Focus To pursue synergistic growth in the retail banking business, focusing on domestic consumer banking and SME lending Key Value Driver Business Pilla
Slide 18: Appendix: Profitability and Key Balance Sheet Data
RM’mil 2020 2021 2022 2023 Jun-24 Operating profit 7,403 8,579 9,203 8,678 4,393 Profitability Profit before tax 6,285 7,367 8,831 8,539 4,412 Net profit 4,872 5,657 6,119 6,649 3,435 Appendix Shareholder Earnings per share (sen) Net assets per share (RM) 25.10 2.43 29.14 2.48 31.53 2.59 34.26 2.82
Slide 19: Appendix: Financial Ratios
% 2020 2021 2022 2023 Jun-24 Industryb Net interest margin on yielding assets 1.95 2.22 2.39 2.20 2.20 N/A Net return on equity+ 11.2 12.4 12.8 13.0 12.8 N/A Profitability Pre-tax return on average assets 1.4 1.6 1.8 1.7 1.7 1.3 Ratios Cost to income ratio 34.6 31.6 31.5 33.7 35.3 46.9 Non interest
Slide 20: Investor Relations Contact
Investor Relations Contact Ms. Chang Siew Yen Ms. Yik Sook Ling Senior Chief Operating Officer Chief Financial Officer +(603) 2176 7461 +(603) 2176 6186 changsiewyen@publicbank.com.my yiksookling@publicbank.com.my Mr. Chong Soo Loong Head Office Director, Corporate Planning, Menara Public Bank Econo