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Finance

Public Bank Bhd.

Company Background

Founded in 1966 by Chairman Teh Hong Piow, Public Bank is one of two banks in Malaysia owned by ethnic Chinese that has managed to avoid being absorbed by bigger players.

Public Bank's strength is in retail banking. It is a leader in property and vehicle lending, as well as in the management of unit trust funds, which has helped the bank remain profitable for nearly a half century. The bank is led by the chairman's right-hand man, CEO Tay Ah Lek, who has been with the bank since its inception. Tay is in his 70s and Teh is in his 80s. There are reports deputy CEO Quah Poh Keat will become the next CEO.

Although the bank has more than 100 overseas branches -- in Hong Kong, Cambodia, Vietnam and Laos -- most of its operating revenue comes from domestic operations. Teh holds a controlling 24% stake in Public Bank and is also a major shareholder in LPI Capital, a listed general insurance company unrelated to the bank.

Business Summary

Public Bank Bhd. engages in the provision of commercial banking services. It operates through the following segments: Hire Purchase, Retail Operations, Corporate Lending, Treasury and Capital Market Operations, Investment Banking, Fund Management, Others, and Head Office and Funding Center. The Hire Purchase segment offers passenger vehicle financing to all levels of customers. The Retail Operations segment includes credit facilities, credit cards, remittance services, deposit collection, and investment products. The Corporate Lending segment caters funding needs of large corporate customers which are primarily public listed companies and its related corporations. The Treasury and Capital Market Operations segment refers to the proprietary trading in treasury related products and services such as foreign exchange, money market operations, and securities trading. The Investment Banking segment focuses on the business needs of large corporate customers through the provision of financial solutions and direct lending. The Fund Management segment consists of sale of trust units and the management of unit trust funds as conducted by the wholly-owned subsidiary company of the bank. The Other segment relates to the non-core operations such as property holding. The Head Office and Funding Center segment manages the investment of funds from shareholders and capital securities, as well as provides support services to the business segments within the bank. The company was founded by Hong Piow Teh in 1965 and is headquartered in Kuala Lumpur, Malaysia.

Financial Highlights

Dec 2020 MYRUSD
Revenue19,087.52M4,542.25M
Gross Profit----
Operating income6,305.22M1,500.45M
Income before tax6,285.06M1,495.65M
Net income4,871.70M1,159.31M
EBITDA----
Diluted EPS0.250.05
Dividends Per Share0.130.03
Total Assets451,256.86M112,183.18M
Total liabilities402,830.23M100,144.24M
Total equity47,248.27M11,745.99M
Operating cash flow4,743.55M1,128.82M
Currency in MYRCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 18,759.46M 19,424.70M 20,341.03M 20,678.41M 19,087.52M
Gross Profit -- -- -- -- --
Operating income 6,490.23M 7,113.95M 7,049.51M 7,079.59M 6,305.22M
Income before tax 6,552.67M 7,120.96M 7,095.91M 7,134.14M 6,285.06M
Net income 5,206.87M 5,470.03M 5,590.61M 5,511.55M 4,871.70M
EBITDA -- -- -- -- --
Diluted EPS 0.26 0.28 0.28 0.28 0.25
Dividends Per Share 0.11 0.12 0.13 0.14 0.13
Total Assets 380,052.82M 395,276.24M 419,693.28M 432,830.67M 451,256.86M
Total liabilities 344,689.05M 356,830.58M 377,596.81M 388,084.47M 402,830.23M
Total equity 34,213.31M 37,364.70M 40,973.05M 43,594.33M 47,248.27M
Operating cash flow 6,099.87M 6,700.13M 5,678.95M 6,563.60M 4,743.55M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 4,528.30M 4,517.87M 5,040.67M 4,991.19M 4,542.25M
Gross Profit -- -- -- -- --
Operating income 1,566.66M 1,654.59M 1,746.92M 1,708.81M 1,500.45M
Income before tax 1,581.73M 1,656.22M 1,758.42M 1,721.98M 1,495.65M
Net income 1,256.87M 1,272.24M 1,385.39M 1,330.33M 1,159.31M
EBITDA -- -- -- -- --
Diluted EPS 0.06 0.06 0.07 0.06 0.05
Dividends Per Share 0.02 0.02 0.03 0.03 0.03
Total Assets 84,719.75M 97,671.42M 101,559.16M 105,813.63M 112,183.18M
Total liabilities 76,836.61M 88,171.62M 91,372.48M 94,874.58M 100,144.24M
Total equity 7,626.68M 9,232.69M 9,914.83M 10,657.45M 11,745.99M
Operating cash flow 1,472.43M 1,558.34M 1,407.29M 1,584.27M 1,128.82M

Valuation Measures

Dec 2020
PER16.41
ROA1.10%
ROE10.72%
Operating margin33.03%
Profit margin25.52%

Key executives

  • Chief Executive Officer, MD & Executive Director: Ah Lek Tay
  • Co-Senior Chief Operating Officer: Sulaiman bin Abdul Manap
  • Co-Senior Chief Operating Officer: Siew Yen Chang
  • Chief Financial Officer & Head-Finance: Sook Ling Yik
  • General Manager-Information Technology: Yoke Fong Fam

Shareholders

  • Consolidated Teh Holdings Sdn. Bhd. (21.6%)
  • Employees Provident Fund (14.8%)
  • Kumpulan Wang Persaraan (4.0%)
  • Permodalan Nasional Bhd. (3.4%)
  • The Vanguard Group, Inc. (2.4%)
  • Great Eastern Life Assurance Co. Ltd. (1.6%)
  • BlackRock Fund Advisors (1.5%)
  • Eastspring Investments (Singapore) Ltd. (1.1%)
  • Norges Bank Investment Management (1.1%)
  • LPI Capital Bhd. (1.0%)

Contact Details

Related Companies

  • Public Bank Group Officers' Retirement Benefits Fund
  • Public Bank OAO
  • Public Bank Vietnam Ltd.
  • Public Bank Bhd. (Vientiane Branch)
  • Public Holdings Sdn. Bhd.
  • Public Bank Bhd. (Colombo Branch)
  • P.B. Securities Sdn. Bhd.
  • Public Islamic Bank Bhd.
  • Cambodian Public Bank Plc
  • Viable Chip (M) Sdn. Bhd.
  • Public Investment Bank Berhad
  • PB Trustee Services Bhd.
  • Public Bank (L) Ltd.
  • Public Leasing & Factoring Sdn. Bhd.
  • Public Bank Group Officers Retirement Benefit Fund
  • Public Consolidated Holdings Sdn. Bhd.
  • HHB Holdings Bhd.
  • Public Financial Holdings Limited
  • PBFIN Bhd.

Competitors

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