Public Bank reports impressive 18% YoY net profit growth in H1 2023, driven by strong loans and deposits, while its subsidiaries in Vietnam and Cambodia also achieve robust profit growth.
In the first half of 2023, Public Bank, a Malaysian bank, raked in RM3.33 billion in earnings, which is a hefty 18.4% increase compared to the previous year. This impressive growth was mainly due to more loans and deposits, smart cost management, and maintaining good asset quality.
Their overseas operations contributed 7.8% to their overall earnings. Public Bank's net return on equity was 13.2%. They also made 3.4% more money from interest compared to the previous year because they lent out more and attracted more deposits.
However, the bank's expenses went up by 3.5% compared to the previous year.
As of June 2023, Public Bank continued to lend more, with loans totalling RM387.2 billion, which is a 5.4% increase compared to the previous year. Most of this loan growth came from within Malaysia, with a yearly increase of 5.0%, reaching RM360.8 billion (approximately $85.7 billion USD).
In the first half of 2023, Public Bank approved 9.1% more domestic loans compared to the same period last year, indicating a positive outlook for future loan growth.
The bank also saw an increase in customer deposits, with a 6.0% rise to RM406.5 billion (approximately $96.7 billion USD) by June 2023. Domestic deposits, especially from retail customers, contributed to this growth, increasing by 6.1% to RM378.4 billion (approximately $90.0 billion USD). During the six-month period, the bank's gross loan-to-fund and equity ratio remained stable at 80.9%.
Public Bank's international operations, especially in Hong Kong and the Indochina region, played a significant role in the group's profits in the first half of the year.
Their subsidiaries, Public Bank Vietnam and Cambodian Public Bank (Campu Bank), both experienced robust profit growth. Public Bank Vietnam's profits increased impressively by 15.9% year-over-year, while Campu Bank achieved an even more substantial growth of 33.1% year-over-year.
Public Bank is strategically expanding its presence in the rapidly growing Indochina region, planning to open eight new branches in Vietnam this year, bringing their total number of branches to 40.
Despite ongoing challenges in Hong Kong's operating environment, even as COVID-19 measures ease, the group remains adaptable.
