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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Public Bank's 2Q Net Profit Rises 10%, Declares 10 Sen Dividend

Public Bank Bhd, Malaysia’s third-largest bank by assets, reported a solid 10% increase in net profit for the second quarter ended June 30, 2024 (2QFY2024), driven by higher net interest income and non-interest income. The bank’s net profit for the quarter rose to RM1.78 billion from RM1.62 billion in the same period last year.

Key Financial Highlights:

  1. Profit and Dividend: Public Bank declared a first interim dividend of 10 sen per share, amounting to RM1.94 billion, payable on September 23, 2024. For 2QFY2024, net interest income rose 5% year-on-year to RM2.32 billion. The group's net profit for the first half of FY2024 (1HFY2024) was RM3.44 billion, up more than 3% from RM3.33 billion in 1HFY2023.

  2. Revenue and Income Growth: Revenue for 1HFY2024 increased by 8.9% to RM13.49 billion, compared to RM12.39 billion in the previous year. The bank’s non-interest income also recorded a growth of 5.8% to RM1.32 billion, largely driven by higher income from unit trust and stockbroking businesses.

  3. Loan and Deposit Growth: Public Bank’s total loan portfolio grew at an annualised rate of 6.0% to RM411.0 billion, with the domestic loan portfolio expanding by 5.9% to RM383.7 billion. This outperformed the Malaysian banking industry’s annualised loan growth of 5.0%. Additionally, total customer deposits posted an annualised growth rate of 5.8% to RM424.9 billion.

  4. Strong Asset Quality and Capital Position: The bank maintained a steady impaired loans ratio of 0.6% and a robust loan loss coverage ratio of 154.2%, well above the industry average. Including regulatory reserves, the loan loss coverage ratio was even higher at 192.7%. Public Bank also upheld its strong capital position with a Common Equity Tier 1 capital ratio and Tier 1 capital ratio both at 14.5%, and a total capital ratio at 17.4%. The liquidity coverage ratio remained solid at 138.5%, above regulatory requirements.

  5. Operational Efficiency: The group’s cost-to-income ratio was maintained at 35.3%, reflecting prudent cost management alongside the bank’s continued efforts to enhance operational efficiency.

Public Bank’s solid performance in 2QFY2024, supported by growth in loans, deposits, and non-interest income, demonstrates the bank’s resilience and strong financial position in Malaysia’s banking sector. The declared dividend and robust capital ratios further underscore the bank’s commitment to delivering value to its shareholders while maintaining a stable financial foundation.

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