Public Bank
Public Bank has established a capital management programme to improve the efficiency of its capital structure. This has resulted in enhanced shareholder value through improved ROE and higher share price valuation multiples. These initiatives were highlighted by the issue of subordinated notes, share buybacks and a high dividend payout ratio.
“As a leading banking and financial services provider in Malaysia and the Asean (Association of Southeast Asian Nations) region, Public Bank has sustained continued profitability growth in recent years, which was achieved through strategies focused on serving the banking and financing needs of the retail consumer and mid-market commercial enterprises,” says chairman Tan Sri Dato’ Sri Dr Teh Hong Piow. “These strategies have resulted in annual loan growth rates in excess of 20% per year for the past four years, which was two to three times that of the banking industry’s rate. At the same time, asset quality measures continued to improve, with a current net NPL ratio of 1.9% being the lowest among Malaysian banks. Public Bank’s shareholders have enjoyed annual returns of 16% per annum over the past 10 years, while owning a stake in a financial institution that has delivered an unbroken profitability track record since it first started business 39 years ago.”
