KUALA LUMPUR: Public Bank Bhd expects the operating environment in Malaysia to remain conducive to growth in the banking sector, underpinned by resilient private expenditure and investment activities, said managing director and CEO Tan Sri Tay Ah Lek.

Sharing the bank’s outlook after delivering its mid-year report, he said it would continue to strengthen its core competency in the retail banking segment, while recognising new opportunities in sustainability and digital transformation.

“As the group proactively moves forward, it will continue to ensure a solid foundation with healthy capital and liquidity position, as well as sound asset quality to safeguard its bottom line and sustainable stakeholder value,” he said.

Public Bank reported a 10.08% jump in net profit in the second quarter ended June 30, 2024 (2QFY24) to RM1.78bil, on the back of topline of RM6.69bil, a 6.82% improvement over the year-ago quarter.

Basic earnings per share in the quarter under review rose to 9.18 sen from 8.34 sen in 2QFY23.

Cumulatively, Public Bank recorded a 1HFY24 net profit of RM3.44bil on revenue of RM13.49bil, as compared to a net profit of RM3.33bil and revenue of RM12.39bil in 1HFY23.

The bank declared an interim dividend of 10 sen per share, representing 56.5% of the group’s net profit for the six months period ended June 30, 2024.

The dividend will be distributed on Sept 23, 2024, based on an entitlement date of Sept 11, 2024.

Public Bank’s net interest and financing income in 1HFY24 rose 3.9% to RM5.42bil compared to 1HFY23, with a stable net interest margin/financing margin of 2.2%.

The group’s non-interest income recorded 5.8% growth to RM1.32bil due to higher income from the unit trust and stockbroking business.

“Public Mutual, a wholly owned subsidiary of the Public Bank Group that manages its unit trust business, remained a significant contributor to the group’s non-interest income.

“As compared with the corresponding period in 2023, Public Mutual registered a healthy growth of 10.5% in pre-tax profit to RM428.3mil in the first half of 2024, accounting for 9.7% of the group’s overall pre-tax profit,” said the bank.

Public Bank saw a 6% increase in its loans portfolio to RM411bil with a 5.9% increase in domestic loans to RM383.7bil.

Customer deposits, meanwhile, grew 5.8% year-on-year to RM424.9bil, with a 5.3% increase in domestic customer deposits to RM395.1bil