Overseas Operations To Contribute 15 Per Cent Of Public Bank's Overall Profits

via CAAI News Media

KUALA LUMPUR, Jan 20 (Bernama) -- Public Bank Bhd's overseas operations will contribute about 15 per cent of the bank's pre-tax profits in three to five years, Managing Director Tan Sri Tay Ah Lek said Wednesday.

He said the bank's subsidiaries in Hong Kong and Cambodia are expected to contribute significantly, adding that revenue from overseas subsidiaries currently accounted for 7.2 per cent of the group's pre-tax profits.

Public Bank currently operates in Hong Kong, China, Cambodia, Laos and Vietnam and is expected to continue its focus in Indochina countries.

To further drive its growth, Public Bank will expand its overseas branch network.

Tay said Public Bank would open two more branches in Hong Kong, bringing the total to 74, five more in Cambodia from the existing 15, two more in Vietnam from seven currently, and add one more each in Shenzhen, China, and Laos where it currently has three.

Speaking at a press conference here after announcing the group's results for the financial year ended Dec 31, 2009, he said growth would remain organic.

"Organic growth is our forte," Tay said, adding that there was no immediate plan to make any foreign or domestic acquisition.

Meanwhile, Public Bank Chairman Tan Sri Dr Teh Hong Piow said the group posted a 4.5 per cent growth in operating pre-tax profit to RM3.32 billion and a net profit of RM2.52 billion in 2009.

The group's improved profit was mainly due to continued strong growth in net interest and financing income by RM435 million or 10.2 per cent to RM4.71 billion.

"We are pleased to have delivered a strong set of results for the year (2009), driven by steady revenue growth, above industry rate of loans growth, strong asset quality, cost efficiency and prudent risk management," Teh said in a statement.

The group also declared a cash dividend of 25 sen per share and share dividend, on a one for every 68 shares held, to be distributed from the treasury shares of Public Bank.

On 2010 prospects, Teh said: " Public Bank group is expected to maintain its earnings momentum and continue to record satisfactory performance."

He said Public Bank would continue to pursue its strategy of strong organic business growth, maintain its superior loans portfolio and improve productivity.

-- BERNAMA