PBBANK-2012 Financial Statement

7/29/2019 PBBANK-2012 Financial Statement

1/13

Year Ended 31 December 2012 2011# 2010# 2009 2008

oPERaTINg RESuLTS (Rmmillin)

Oprating profit 5,386 5,200 4,738 4,015 3,948

Profit bfor ta pns and zakat 5,104 4,878 4,086 3,321 3,379

Nt profit attribtabl to qity holdrs of th Bank 3,869 3,684 3,048 2,517 2,581

KEy BaLaNCE ShEET daTa (Rmmillin)

Total assts 274,625 250,559 226,988 217,136 196,163

Loans, advancs and financing 196,052 175,953 154,864 135,336 118,386

Total liabilitis 255,981 234,140 212,644 205,421 185,934

Dposits from cstomrs 225,042 200,371 176,872 170,892 151,185Cor cstomr dposits 177,035 157,297 143,639 127,623 111,204

Paid-p capital 3,532 3,532 3,532 3,532 3,532

Sharholdrs qity 17,944 15,722 13,692 11,023 9,537

Commitmnts and contingncis 79,458 70,847 69,206 61,435 52,867

ShaRE INfoRmaTIoN aNd VaLuaTIoN

Share Information

Pr shar (sn)

Basic/Diltd arnings 110.5 105.2 87.2 73.3 76.9

Nt dividnd

Cash dividnd 50.0 48.0 45.5 41.3 41.0

Shar dividnd 1 for 68 1 for 35Nt assts 512.4 448.9 391.0 319.4 284.2

Shar pric as at 31 Dcmbr (RM)

Local 16.28 13.38 13.02 11.30 8.85

Forign 16.30 13.20 13.00 11.26 8.75

Markt capitalisation (RM'Million) 57,521 47,066 45,964 39,868 31,152

Valuations (Local Share)

Nt dividnd yild (%) 3.1 3.6 3.5 3.7 4.6

Nt dividnd yild (inclding shar dividnd) (%) 3.1 3.6 3.5 5.1 7.5

Dividnd payot ratio (%) 45.3 48.3 52.3 56.6 53.2

Dividnd payot ratio (inclding shar dividnd) (%) 45.3 48.3 52.3 79.3 84.8

Pric to arnings mltipl (tims) 14.7 12.7 14.9 15.4 11.5Pric to book mltipl (tims) 3.2 3.0 3.3 3.5 3.1

PROFIT BeFORe TAx

RM5.10b

GROSS IMPAIReD LOANS RATIO

0.7%

4PUBLIC BANK BERHADAnnua l Repor t 2012

Resilient Always

FiVE-yEAR gROuPFinAnCiAl suMMARy


2/13

Year Ended 31 December 2012 2011# 2010# 2009 2008

fINaNCIaL RaTIoS (%)

Profitability Ratios

Nt intrst margin on avrag intrst baring assts 1 3.1 3.3 3.4 3.2 3.2

Nt rtrn on qity 2 24.5 26.8 27.1 26.1 30.4

Rtrn on avrag assts 1.9 2.0 1.8 1.6 1.8

Rtrn on avrag risk-wightd assts 3.0 3.2 3.1 2.8 3.2

Cost/incom ratio 30.5 29.8 30.7 32.6 31.2

Asset Quality Ratios

Nt loan to dposit ratio 87.1 87.8 87.6 79.2 78.3

Gross impaird loans ratio 3 0.7 0.9 1.1 1.4 1.0

Loan loss covrag 126.0 113.8 94.2 120.3^ 159.7

Capital Adequacy Ratios

Tir I capital ratio 11.4 11.2 11.3 10.5 8.3

Risk-wightd capital ratio 14.6 15.6 14.2 14.6 13.7

Capital bas (RMMillion) 26,298 25,416 19,992 18,221 15,775

Tir 1 qity capital 16,544 14,334 12,040 9,161 8,157

dbt capital 3,893 3,916 3,896 3,964 1,440

Tir 2 loan impairmnt rsrvs 1,038 1,073 1,002 2,052 1,760

dbt capital 4,870 6,138 3,102 3,218 4,419

Othrs (47) (45) (48) (174) (1)

PRoduCTIVITy RaTIoS

No. of mploys 17,625 17,511 17,369 17,169 16,160

Gross loan pr mploy (RM000) 11,222 10,148 9,013 8,015 7,467

Dposits pr mploy (RM000) 12,768 11,443 10,183 9,953 9,356

Profit bfor ta pr mploy (RM000) 290 279 235 193 209

maRKET ShaRE (%)

Domstic markt sharLoans, advancs & financing 16.7 16.4 16.3 15.9 14.8

Dposits from cstomrs 15.2 14.9 14.8 16.3 15.5

Cor cstomr dposits 16.7 16.1 16.3 15.4 14.7

1 Excluding negotiable instruments of deposit and money market deposits which are on-lent to interbank.2 Based on equity attributable to equity holders of the Bank, adjusted for dividend declared subsequent to year end.3 FYE 2009 to 2012 are based on a more stringent criteria on classification of impaired loans under MFRS/FRS 139. FYE 2008 is based on 3 months

classification under BNM/GP3.^ Restated due to the adoption of FRS 139.# Restated as a result of retrospective application of MFRS 139. For FYE 2010, only relevant balance sheet items have been restated to position as at

1 January 2011.

CuSTOMeR DePOSITS

12.3%

GROSS LOANS

11.3%

Five-Year GroupFinancial Summary

5


3/13

0

1,000

2,000

3,000

4,000

Year

RMMillion

500

1,500

2,500

3,500

Net profit attributable to equity holders

Once-off ING goodwill income

2012

3,869

2011

3,684*

2010

3,048

2009

2,517

2008

2,581

2,436

Enhancing Shareholder Value

Commendable Profit Track Record

0

10

20

30

40

Net return on equity (excluding once-off ING goodwill income)

Net return on equity

2009

26.1

2010

27.1

2011

26.8

2012

24.5

2008

30.4

28.4

Percentage (%)

Year

Attractive Shareholder Return

* Restated due to retrospective application of MFRS 139 which resulted in a change in accounting policy on

collective assessment allowance for loans


Resilient Always

suMMARy OFFiVE-yEAR gROuP gROwThReet Performace Amd Cae Evromet


4/13

Sen Percentage (%)

Dividend payout ratio (excluding share dividend)

Dividend payout ratio (including share dividend)

0

20

40

60

80

100

20

10

40

50

30

60

70

80

90

100

0

Ordinary net dividend per share-sen

Share dividend per share-sen

Year

45.5

52.3

2010

48.0

48.3

2011 2012

45.3

50.0

84.8

53.2

2008

25.3 16.6

41.3

56.6

79.3

2009

Share price Public Bank (Local)

Share price Public Bank (Foreign)

16.3016.28

13.2013.38

11.2611.30

8.758.85

13.0013.02

Year

RM

0

2.00

4.00

6.00

10.00

8.00

12.00

16.00

14.00

18.00

Healthy Dividend Payout

Improving Share Price

41.0

Summary ofFive-Year Group Growth

7


5/13

87.8*

Percentage (%)

Year

78.379.2

Gross loans, advances and financing

Customer deposits

87.6*

Net loan/deposit ratio

RMMillion

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

250,000

20

10

0

90

70

50

30

40

60

80

100

2008

120,669

151,185

2009

137,610

170,892

2010

156,544

176,872

2011

177,694

200,371

2012

225,042

197,783

Healthy Balance Sheet Growth

Healthy Growth in Loans and Customer Deposits with Stable Loan/Deposit Ratio

87.1

Year

RMMillion

Total assets

2012

274,625

2011

250,559*

2010

226,988*

2009

217,136

2008

196,163

0

50,000

100,000

150,000

200,000

250,000

300,000

Steady Asset Growth


Resilient Always



6/13

hi Ln Lss Reserves

Gross impaired loans ratio MFRS 139**Gross impaired loans ratio old GP3*

Percentage (%)

Year0

0.4

0.8

1.2

1.6

1.0

2008

1.0

1.4

2009

1.1

0.9

2010

0.9

0.8

2011

0.7

2012

Loan loss coverage

Percentage (%)

Year0

50

100

150

200

113.8*

2011

126.0

2012

159.7

2008

120.3^

2009

94.2*

2010

* Old GP3 loans in arrears for 3 months or more

** MFRS 139 loans in arrears for 3 months or more and significant loans below 3 months which show indications of

impairment


9


7/13

2011

2011

2011 2012

2012

Profit Before TaxDomestic

Overseas

Hire purchase13.1%

Retail operations58.5%

Corporate lending6.3%

Treasury and capitalmarket operations

6.6%

Investment banking0.9%

Fund management7.3%

Others0.9%

Hong Kong SAR3.6%

Cambodia2.2%

Other countries0.6%

Domestic

Overseas

Hire purchase13.2%




6.6%


Fund management6.6%

Others3.2%

Hong Kong SAR3.6%

Cambodia1.9%

Other countries0.6%

2011 2012

2012

Total Assets

Domestic

Overseas

Hire purchase12.7%



Treasury and capital

market operations21.5%


Fund management0.1%

Others0.1%

Hong Kong SAR4.7%

Cambodia1.1%

Other countries0.2%

Domestic

Overseas

Hire purchase12.8%



Treasury and capital

market operations22.0%


Fund management0.1%

Others0.1%

Hong Kong SAR5.3%

Cambodia1.1%

Other countries0.2%

2011Domestic

Overseas

Hire purchase16.9%




12.0%


Fund management6.8%

Others2.3%

Hong Kong SAR5.8%

Cambodia1.7%

Other countries0.3%

2011

Operating Revenue

2012

2012Domestic

Overseas

Hire purchase16.0%




11.8%


Fund management6.2%

Others2.6%

Hong Kong SAR5.3%

Cambodia1.6%

Other countries0.3%


Resilient Always

sEgMEnTAlAnAlysis


8/13

anlsis te Ince Stteent

Net Ince

Th Pblic Bank Grops nt incom grw 4.6% to RM7.75 billion in 2012 from RM7.41 billion in 2011.

Variance Contribution

2012

RM000

2011

RM000 RM000 % %

Nt intrst incom 5,254,645 4,974,931 279,714 5.6 67.8

Nt incom from Islamic Banking Bsinss 843,766 868,342 (24,576) (2.8) 10.9

Othr oprating incom 1,648,298 1,565,297 83,001 5.3 21.3

Net ince 7,746,709 7,408,570 338,139 4.6 100.0

0

2,000

3,000

4,000

6,000

1,000

5,000

1.0

0

2.0

3.0

4.0

5.0

6.0

Year

Net interest income

Net int margin

Net int margin (exclude funds fromMMD and NIDs issued)

2012

Net Interest Income and Margins

RMMillion Percentage %

2010

4,597.4

2011

4,974.95,254.6

2.7%

3.4% 3.3%

2.7%2.5%

3.1%

Net Interest Ince

Nt intrst incom ros 5.6% or RM279.7 million in 2012,

rprsnting 67.8% of th Pblic Bank Grops total nt

incom.

Nt intrst margin on intrst-baring assts (clding

fnds from wholsal dposits) fll 20 basis points to 3.1%

in 2012 mainly d to narrowing loan and dposit sprad as

a rslt of kn markt comptition. Dspit th comprssion

of nt intrst margin, th Grops nt incom incrasd by

4.6% or RM338.1 million to RM7,746.7 million in 2012

primarily d to halthy growth in loans and cstomr

dposits.

Net Ince fr Islic Bnkin Bsiness

In 2012, th Pblic Bank Grops nt incom from Islamic

banking bsinss accontd for 10.9% of th Grops total

nt incom. Th dcras in nt incom by RM24.6 million

was mainly d a transfr to Profit eqalisation Rsrv

(PeR) of invstmnt accont holdrs in 2012 as compard

to a transfr from PeR in 2011.

11

AnAlysis OF ThEFinAnCiAl sTATEMEnTs


9/13

oter opertin Ince

Th Pblic Bank Grops othr oprating incom accontd for 21.3% of th Grops total nt incom. Othr oprating

incom grw by 5.3% to RM1,648.3 million in 2012 from RM1,565.3 million in 2011 mainly d to highr comission incom

and f incom from th Grops fnd managmnt bsinss.

2012 2011 Variance

RM000 RM000 RM000 %

Net fee and commission income 1,165,313 1,118,909 46,404 4.1

of which:

Nt commission, srvic chargs and fs 394,684 360,794 33,890 9.4

Nt brokrag and commissions 75,509 100,946 (25,437) (25.2)Incom from fnd managmnt activitis 557,126 525,317 31,809 6.1

Net gains and losses on financial instruments 170,244 166,154 4,090 2.5

Other income 312,741 280,234 32,507 11.6

of which:

Profits from forign chang bsinss 225,445 217,563 7,882 3.6

Total other operating income 1,648,298 1,565,297 83,001 5.3

Other Operating Income Contribution 2012

71%

34%

24%

5%

10%

19%

8%

Net fee and commission income

Income from fund management activities

Net commission, service charges and fees

Other income

Net gains and losses on financial instruments

Net brokerage and commissions

Other fee and commission income

Th Pblic Bank Grops nt f and commission incom

grw by RM46.4 million or 4.1% in 2012 to RM1,165.3 million,

ld by strong prformanc of th Grops fnd managmnt

bsinss which rportd an incras in incom of

RM31.8 million or 6.1% to RM557.1 million. This was

spportd by th growth in nt asst val of nit trst

fnds ndr managmnt by 22.0% to RM54.58 billion as

compard to RM44.75 billion in 2011. Nt commission,

srvic chargs and fs incrasd to RM394.7 million in

2012, rprsnting a 9.4% growth from 2011. Nt brokrag

and commissions from stock-broking activitis contribtd

RM75.5 million to th Grops total othr oprating incom

in 2012.

Nt gains and losss on financial instrmnts ros by

RM4.1 million or 2.5% to RM170.2 million in 2012.

Othr incom incrasd by RM32.5 million or 11.6% to

RM312.7 million in 2012 as a rslt of gain on rvalation

of invstmnt proprtis in Hong Kong and highr volm of

th Grops forign chang bsinss.


Resilient Always

Analysis of theFinancial Statements


10/13

RMMillion

Total Other Operating Expenses

2011 2012 Year

Personnel cost

Establishment cost

Marketing expenses

Administration and general expenses

453.9

1,611.4

152.0

143.6

419.1

155.3

1,495.8

138.5

0

1,000

2,000

2,500

500

1,500

oter opertin Expenses

Othr oprating pnss of th Pblic Bank Grop

incrasd by 6.9% to RM2,360.9 million in 2012 as a rslt

of highr prsonnl and stablishmnt costs. Prsonnl cost

accontd for 68.3% of total oprating pnss of th

Grop.

Other Operating Expenses Contribution 2012

Personnel cost

68.3%

Administration and general expenses

6.1%

Marketing expenses

6.4%

Establishment cost

19.2%

Prsonnl cost ros by 7.7% to RM1,611.4 million in 2012

primarily d to annal salary pns and highr hadconts

to spport bsinss pansion. Th Pblic Bank Grops

staff forc pandd to 17,625 as at th nd of 2012 from

17,511 a yar ago.

establishmnt cost accontd for 19.2% of total othr

oprating pnss of th Grop. In 2012, stablishmnt

cost incrasd by 8.3% from RM419.1 million in 2011 to

RM453.9 million in 2012 d to th opning of nw branchs

and invstmnt in infrastrctr to spport pansion in

bsinss volm.

Th Grops markting pnss dcrasd by 2.1% to

RM152.0 million in 2012 whilst administration and gnral

pnss incrasd by 3.7% to RM143.6 million in 2012,

acconting for 6.4% and 6.1% rspctivly of th Grops

total othr oprating pnss.

13



11/13

allwnce r Ipirent n Lns, avnces

n finncin

Th domstic allowanc for impairmnt on loans, advancs

and financing fll by RM12.5 million to RM147.2 million in

2012 mainly d to th improvmnt in collctiv assssmnt

allowanc offst by lowr rcovris.

Th ovrsas allowanc for impairmnt on loan, advancs

and financing droppd by RM35.0 million or 20.9% to

RM132.0 million in 2012 d to improvd crdit conditions

in th Grops Hong Kong and Cambodian oprations.

Ipirent Lss

Impairmnt loss on forclosd proprtis and financial

invstmnts availabl-for-sal amontd to RM6.6 million in

2012 as compard to impairmnt loss writtn back of

RM1.6 million in 2011.

Tx Expenses n Zkt

In 2012, th Pblic Bank Grops ta pns incrasd by

RM38.7 million or 3.4% to RM1,192.2 million consistnt with

th highr rportd pr-ta profits.

Th Grops ffctiv ta rat was 23.4% in 2012, lowr

than Malaysias stattory ta rat of 25.0% mainly d tocrtain incom not sbjct to ta and th ffcts of lowr

ta rats in jrisdictions otsid Malaysia.

159.7*

167.0

147.2

132.0

Allowance for Impairment on Loans,Advances and Financing

RMMillion

Domestic

Overseas

Year

2011 2012

100

300

350

50

0

150

200

250

* Restated due to retrospective application of MFRS 139 which resulted in a

change in accounting policy on collective assessment allowance for loans


Resilient Always



12/13

anlsis te Stteent finncil Psitin

2012 2011# Variance

RMMillion RMMillion RMMillion %

Assets

Cash and balancs with banks 18,636 18,634 2 0.0

Rvrs rprchas agrmnts 8,159 9,287 (1,128) (12.1)

Financial assts hld-for-trading 16,617 10,657 5,960 55.9

Financial invstmnts availabl-for-sal 17,201 16,719 482 2.9

Financial invstmnts hld-to-matrity 6,257 7,629 (1,372) (18.0)

Loans, advancs and financing 196,052 175,953 20,099 11.4

Stattory dposits with Cntral Banks 5,787 5,598 189 3.4

Othr assts 5,916 6,082 (166) (2.7)

Total Assets 274,625 250,559 24,066 9.6

Liabilities

Dposits from cstomrs 225,042 200,371 24,671 12.3

Dposits from banks 12,849 15,807 (2,958) (18.7)

Dbt scritis issd and othr borrowd fnds 9,947 11,318 (1,371) (12.1)

Othr liabilitis 8,143 6,643 1,500 22.6

Total Liabilities 255,981 234,139 21,842 9.3

Total Equity 18,644 16,420 2,224 13.5

Total Liabilities and Equity 274,625 250,559 24,066 9.6

# Restated as a result of retrospective application of MFRS 139.

Ttl assets

Th Pblic Bank Grops total assts stood at RM274.63 billion as at 31 Dcmbr 2012, an incras of RM24.07 billion

or 9.6% ovr th prvios financial yar. Th incras was th rslt of anothr yar of strong loan growth of 11.3% dspit

th intns comptition.

As at th nd of Dcmbr 2012, nt loans, advancs and financing accontd for 71.4% of th Grops total assts as

compard to 70.2% in th prvios yar. Th proportion of intrst-baring assts has rmaind high at 93.2% at th nd

of 2012.

Cs n Blnces Wit Bnks

ecss liqidity in th Grop was mainly hld in short-trm mony markt placmnts. Thr was no significant chang in

cash and balancs with banks as compard to 2011.

Reverse Reprcse areeents

Th Grops holdings of rvrs rprchas agrmnts, as an altrnativ avn for th placmnt of liqid fnds,

dcrasd by RM1.13 billion.

15



13/13

finncil Investents

Th Grops financial invstmnts compris primari ly of

govrnmnt-rlatd scritis and mony markt instrmnts,

which ar mainly hld for yild and liqidity prposs.

Holdings of trading book positions, classifid ndr financial

assts hld-for-trading has incrasd by RM5.96 billion

mainly d to an incras in holdings of govrnmnt-rlatd

scritis and mony markt instrmnts. As at th nd of

2012, financial assts hld-for-trading comprisd 41.5% of

th Grops financial invstmnts.

Th Grops banking book positions ar hld ndr its

financial invstmnts availabl-for-sal and financial

invstmnts hld-to-matrity portfolios. Financial invstmntsavailabl-for-sal incrasd marginally by RM0.48 billion d

to highr holdings of govrnmnt-rlatd scritis, whras

financial invstmnts hld-to-matrity dcrasd by

RM1.37 billion as a rslt of dcrasd holdings of mony

markt instrmnts. As at 31 Dcmbr 2012, 42.9% and

15.6% of th Grops financial invstmnts wr hld in

financial invstmnts availabl-for-sal and financial

invstmnts hld-to-matrity rspctivly.

Lns, avnces n finncin

Th Grops loan book grw by RM20.10 billion or 11.4%

to RM196.05 billion as at nd of 2012. Dring th sampriod, domstic loan growth was vn strongr at 12.5%,

as th Pblic Bank Grop contind to focs on its cor

strngths in th financing of rsidntial proprtis, prchas

of passngr vhicls and small- and mdim-sizd

ntrpriss, which grw by 17.1%, 8.5% and 22.2%

rspctivly. Th Grops loan growth has contind to

otpac that of th Malaysian banking indstry. As a rslt,

th markt shar incrasd to 16.7% as at th nd of 2012.

Dspit adopting a strong organic growth stratgy, th

asst qality of th loan bas has not bn compromisd,

with th impaird loan ratio rcding to 0.7% as at nd of

2012.

Ttl Libilities n Eqit

Th Pb l ic Ba nk Gr o p s to ta l l iab i l it is grw by

RM21.84 billion in 2012 d to strong growth in cstomr

dposits of RM24.67 billion, partially offst by a drop in

dposits from banks by RM2.96 billion. Th Grops qity

has also grown to RM18.64 billion, to corrspond with th

pansion in th asst bas. This was mainly d to strong

nt profits of RM3.87 billion rgistrd dring th yar.

depsits r Csters

Th Grops dposi ts f rom cstomrs grw by

RM24.67 billion or 12.3% to RM225.04 billion on th back

of a srg in cor cstomr dposits as wll as wholsal

dposits. Domstic cor cstomr dposits rgistrd a

strongr growth rat, rslting in a highr markt shar of

16.7% as at th nd of 2012. Th Grops loan to dposit

ratio rmaind halthy at 87.1%.

depsits r Bnks

Dposits from banks which consist mainly of intrbank

borrowings, dcrasd by RM2.96 billion d to th Grops

fnding and gapping activitis.

debt Secrities Isse n oter Brrwe fns

Th Grops dbt scritis compris Sbordinatd Nots,

Innovativ Tir 1 Capital Scritis and Non-innovativ Tir 1

Stapld Scritis. Ths fnds allow th Grop to divrsify

its fnding bas, whilst strngthning its capital position and

improving its rtrn on qity. Dring th yar, th Grop

flly rdmd its uSD400.0 million Sbordinatd Nots.

Thr wr no issanc of rp lacmnt Ti r 2 capita l

instrmnts as th Grop has sfficint Tir 2 capital to

sstain its immdiat capital rqirmnts.

oter libilities

Othr liabilitis incrasd by RM1.50 billion, mainly d to

th incras in bills and accptancs payabl and rcors

obligations on loans and financing sold to Cagamas by

RM0.95 billion and RM0.49 billion rspctivly.

16PuBLIC BANK BeRHADAnna l Rpor t 2012

Resilient Always


Documents

PBBANK-2012 Financial Statement