Public Bank Bhd · MYX:PBBANK
Public Bank Bhd — Q1 2007 Earnings Presentation
24 slides from Public Bank Bhd's earnings presentation, 2007
Slide 1: Group Unaudited Financial Results for the Period Ended 31 March 2007
Group Unaudited Financial Results for the Period Ended 31 March 2007
Slide 2: Financial Performance – Net profit up 23% to RM476.2m
Financial Performance – Net profit up 23% to RM476.2m YTD YTD 1Q07 4Q06 % % Mar 2007 Mar 2006 RM million RM million q-o-q y-o-y RM million RM million Net interest income 762.6 751.3 2 762.6 661.5 15 Islamic banking income 105.5 112.0 (6) 105.5 100.9 5 Other operating income 352.6 313.2 13 352.6 230.
Slide 3: Quarterly Net Profit
Quarterly Net Profit RM million 500 400 476 388 457 436 445 300 347 369 350 393 388 200 12% 24% 25% 13% 23% 100 0 Mar 05/06 Jun 05/06 Sep 05/06 Dec 05/06 Mar 06/07 3
Slide 4: Quarterly Growth vs Preceding Quarter
Quarterly Growth vs Preceding Quarter 1Q07 4Q06 3Q06 2Q06 1Q06 % q-o-q q-o-q q-o-q q-o-q q-o-q Net interest income 1 2 3 8 4 (include IB income) Other operating income 13 14 (5) 26 (7) Other operating 7 10 2 7 2 expenses Operating profit 2 2 1 15 2 Loan loss allowances (18) (17) 11 26 4 Pre-tax prof
Slide 5: Key Financial Ratios
Key Financial Ratios % % Mar 2007 Mar 2006 y-o-y 1Q07 4Q06 q-o-q Cost income ratio (%) 36.9 35.3 5 36.9 35.8 3 Return on assets (%) 1.8 1.9 (7) 1.8 1.8 (2) Net return on equity* (%) 22.9 19.5 17 22.9 21.5 7 Overheads / avg. assets (%) 1.2 1.2 (1) 1.2 1.2 (1) Net interest margin on 3.3 3.4 (4) 3.3 3.
Slide 6: Profit Contribution By Segments
Profit Contribution By Segments Mar 2007 Mar 2006 Variance RM million % RM million % % Retail operations 518.2 72 395.9 72 31 Treasury & capital market 96.1 13 114.5 21 (16) operations Fund management 32.9 5 18.8 4 75 Investment banking 24.8 3 7.1 1 (#) Corporate lending 41.4 6 10.6 2 (#) Others 1.7
Slide 7: Net Interest Margin
Net Interest Margin 4.0% 3.7 3.6 3.5 3.4 3.4 3.3 3.5% 3.0% 3.3 2.5% 3.0 2.9 2.8 2.6 2.5 2.0% Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Mar-07 Net Int Margin Net Int Margin (excl. funds from NIDs Issued) Net interest income and financing income grew by RM106m or 14% compared to last corresponding period.
Slide 8: Other Operating Income
Other Operating Income Mar 2007 Mar 2006 1Q07 4Q06 % % RM RM RM RM y-o-y q-o-q million million million million Fee Income 181.1 138.9 30 181.1 167.9 8 Non-Fee Income 171.5 91.1 88 171.5 145.3 18 Total 352.6 230.0 53 352.6 313.2 13 8
Slide 9: Other Operating Expenses
Other Operating Expenses Mar 2007 Mar 2006 % 1Q07 4Q06 % RM million RM million y-o-y RM million RM million q-o-q Personnel Costs 214.4 188.6 14 214.4 213.4 (*) Establishment Costs 77.5 69.3 12 77.5 70.7 10 Marketing Expenses 126.7 55.1 (#) 126.7 98.3 29 Administration Expenses 32.4 37.6 (14) 32.4 39
Slide 10: PBT of Major Group Companies
PBT of Major Group Companies Variance (excluding dividend from subsidiaries) Mar 2007 Mar 2006 RM % RM million RM million million Public Bank 547.6 436.6 111.0 25 Overseas Operations 84.6 69.6 15.0 22 Public Mutual 32.9 18.8 14.1 75 Public Investment Bank 22.8 6.2 16.6 (>100) Public Bank (L) 4.6 4.9
Slide 11: Loan Loss Allowances
Loan Loss Allowances RM million 308.6 0.8% 300.0 261.4 0.72% 221.3 0.6% 201.9 200.0 0.4% 0.39% 100.0 0.35% 0.34% 0.2% 35.2 0.16% 0.0 0.0% 2003 2004 2005 2006 Mar-07 (3 months) Credit Charge Credit Charge off % 11
Slide 12: Financial Summary: Balance Sheet
Financial Summary: Balance Sheet Mar 2007 Dec 2006 Variance RM billion RM billion RM billion y-o-y Total assets 157.3 147.8 9.5 6 Gross loans and advances 88.1 84.4 3.7 4 Domestic gross loans and advances 79.2 76.7 2.5 3 Deposits from customers 116.6 111.8 4.8 4 Shareholders’ funds 8.6 9.0 (0.4) (5)
Slide 13: Loan Growth, Loan Mix & Asset Quality
LOAN GROWTH, LOAN MIX & ASSET QUALITY
Slide 14: Loans Growth
Loans Growth Mar 2007 (%) (Annualised) PBB 17.6 Industry Average* 6.0 *extrapolated based on first 2 months loan growth in 2007 Market Share: Mar- 07 - 13.6% 2006 - 13.2% 2005 - 12.0% 2004 - 11.1% 14
Slide 15: Loan by Purpose
Loan by Purpose Mar 2007 % of Dec 2006 % of Growth total total RM billion RM billion (%) loans loans Purchase of landed properties 38.9 44 37.3 44 4 - Residential 23.7 27 23.0 27 3 - Non-residential 15.2 17 14.3 17 6 Purchase of transport vehicles 23.9 27 23.3 28 3 Working capital 14.5 17 13.5 16 7
Slide 16: Fixed Rate & Floating Rate Loans
Fixed Rate & Floating Rate Loans 6% RM5.4b 38% RM33.6b RM49.1b 56% Fixed Rate Floating Rate Initial fixed rate, thereafter floating rate Interest rate Impact : 1% hike in interest rate would result in a RM99m increase in the Group’s net interest income. Duration : Modified duration is 1.6 years.
Slide 17: Loans Approved
Loans Approved RM billion 10 7.9 8 6.3 6 4 2.5 2.4 2.0 2 1.3 1.5 1.5 0 Total Housing SMEs Vehicle Mar-07 Mar-06
Slide 18: Asset Quality
Asset Quality 3-month classification Mar 2007 Dec 2006 Gross NPL (RM million) 1,583 1,578 Net NPL ratio (%) 1.5 1.6 Loan loss coverage (%) 102.1 99.9 GP ratio (%) 1.6 1.6 GP/Net NPL (%) 102.5 99.9 % 3 2 2.7 1 2.1 2.3 2.1 1.9 1.7 1.9 1.9 1.8 1.6 1.6 1.5 0 Dec'04 Jun'05 Dec'05 Jun'06 Dec'06 Mar'07 Gro
Slide 19: NPL Ratio for Key Lending Sectors
NPL Ratio for Key Lending Sectors Mar 2007 Gross NPL Dec 2006 Gross NPL Key Lending Sectors RM million % RM million % Housing Loans 708 3.0 706 3.1 SME 325 1.8 318 1.8 Hire Purchase 251 1.0 248 1.1 Total key lending sectors 1,284 2.0 1,272 2.0 19
Slide 20: Continued Growth in Core & Wholesale Deposits
CONTINUED GROWTH IN CORE & WHOLESALE DEPOSITS
Slide 21: Total Deposits Grew By 4%
Total Deposits Grew By 4% Mar 2007 Dec 2006 Growth RM billion RM billion RM billion (%) Demand deposits 11.9 11.3 0.6 5 Savings deposits 15.6 14.8 0.8 5 Fixed deposits 56.1 53.4 2.7 5 Others 0.4 0.4 - - 84.0 79.9 4.1 5 NIDs 32.6 31.9 0.7 2 Total 116.6 111.8 4.8 4 Mar 2007 Dec 2006 Cost of deposits
Slide 22: Capital Adequacy Ratio
Capital Adequacy Ratio Mar 2007 2006* 2005* RM mil RM mil RM mil Total Tier 1 Capital 7,352 7,266 7,055 Total Tier 2 Capital 4,737 4,759 3,873 Total Capital Base 12,089 12,025 10,928 Risk-Weighted Assets 86,907 82,425 68,009 Mar 2007 2006 2005 RM mil RM mil RM mil Risk-Weighted Capital Ratio 13.9 14
Slide 23: Prospects for Year of 2007
Prospects for Year of 2007 To maintain earning growth momentum leveraging on: ¾ continued strong loans & deposits growth ¾ continued growth in net interest income ¾ stable NPL To build on existing strengths (Strong brand, market positions, capital strength and asset quality) Loan growth will c
Slide 24: The End
The End