The group did not declare any dividends for the quarter. (Photo by Low Yen Yeing/The Edge)

KUALA LUMPUR (May 30): Public Bank Bhd saw its net profit for the first quarter ended March 31, 2022 (1QFY22) down by 8.59% to RM1.4 billion from RM1.53 billion a year ago due to the recognition of the prosperity tax.

Earnings per share declined slightly to 7.21 sen from 7.88 sen.

In a filing with Bursa Malaysia on Monday (May 30), the banking group stated that its quarterly revenue dropped by 2.84% to RM4.89 billion, compared with RM5.03 billion previously.

The group did not declare any dividends for the quarter.

On a quarterly basis, net profit grew by 1.28% from RM1.38 billion for 4QFY21, while revenue slid by 0.59% from RM4.89 billion.

In 1QFY22, net interest income increased by RM30.8 million or 1.5%, whereas other income increased by RM42.6 million or 60.8%, which was mainly due to higher foreign exchange income.

Meanwhile, the group's common equity Tier I capital ratio, Tier I capital ratio and total capital ratio stood at healthy levels of 14.3%, 14.4% and 17.4% respectively.

Its liquidity position also remained stable and healthy, with the liquidity coverage ratio standing at 126.2% as at March 31, 2022.

Commenting on the group’s financial performance, Public Bank founder and chairman Tan Sri Dr Teh Hong Piow said the operating environment still remains highly challenging.

“The Public Bank group’s financing growth [however] remained well supported by its healthy funding structure as reflected in its gross loan-to-fund and equity ratio of 80.7% as at the end of March 2022,” he said.

Meanwhile, Teh shared that the banking group’s resilience was further strengthened and it remains in good stead to capitalise on growth opportunities in the post-pandemic economy going forward.

“The group will remain steadfast in pursuing its organic business strategy, improving cost efficiency and maintaining superior asset quality to support its sustainable growth,” Teh added.

At noon break on Monday, shares in Public Bank settled one sen or 0.22% lower at RM4.61, giving it a market capitalisation of RM89.48 billion.