KUALA LUMPUR (May 25): Public Bank Bhd's net profit for the first quarter ended March 31, 2023 rose 22% to RM1.71 billion from RM1.4 billion a year earlier, due to the absence of the prosperity tax.

In a Bursa Malaysia filing on Thursday (May 25), Public Bank said revenue for the quarter rose 25% to RM6.12 billion from RM4.89 billion earlier, led by healthy loans and deposit growth.

Earnings per share grew to 8.83 sen from 7.21 sen.

Public Bank did not declare any dividend for the quarter.

In a separate statement, Public Bank managing director and chief executive officer Tan Sri Dr Tay Ah Lek said the bank continued to navigate through the challenges in the evolving operating environment and demonstrated resilience in its first quarter 2023 performance, which was mainly supported by commendable net interest income growth and lower loan impairment allowances.

Reviewing its performance, Public Bank said during the first quarter ended March 2023, the group maintained a healthy loan growth momentum at an annualised growth rate of 5.0% to RM381.6 billion, largely supported by the domestic loan portfolios, which grew by an annualised rate of 5.4% to RM356.8 billion.

It said domestic loan growth was mainly contributed by residential properties financing, hire purchase financing as well as small and medium enterprise (SME) financing. Residential properties financing grew at an annualised rate of 6.1%, hire purchase financing at 11.5% and SME financing at 2.7%.

Public Bank said this has sustained the group’s leading market share in residential properties financing, which stood at 20.6%, hire purchase financing (30.4%) and domestic SME lending (19%).

On its overseas operations, Public Bank said that in the first quarter of 2023, overseas operations contributed 8.1% to its profit, mainly from Hong Kong and Indochina operations.

Public Bank Vietnam and Cambodian Public Bank continued to deliver strong profit performance. This is reflected in Public Bank Vietnam's double-digit profit growth of 24.5% year-on-year and Cambodian Public Bank's 59.8%.

The group said Indochina will continue to be the group’s key focus growth area, with continued expansion of branch network as well as broadening of products and services.

Public Bank is targeting to open another eight new branches in Vietnam to reach a total of 40 branches by year end, it said.

At the midday break, Public Bank shed 0.26% or one sen to RM3.91 with 2.68 million shares traded.