Latest news with #TayAhLek
The Star
22-05-2025
- Business
- The Star
Govt to study ‘retirement at 65' proposal
Literary award: Anwar launching Hadiah Bahasa Public Bank – Dewan Bahasa dan Pustaka 2025. With him are Public Bank managing director and chief executive officer Tan Sri Tay Ah Lek (right), Education Ministry secretary-general Datuk Dr Aminuddin Hassim (left) and Deputy Education Minister Wong Kah Woh. — Bernama KUALA LUMPUR: The government will study the proposal to raise the retirement age to 65 before presenting it to the Cabinet, says Datuk Seri Anwar Ibrahim. However, the Prime Minister said the matter has not been raised or discussed in Cabinet meetings. 'Let the ministry study the implications first,' he said, adding that the proposal involves various factors such as financial cost and the creation of new job opportunities. 'The idea deserves attention and consideration but let the relevant agencies discuss it first,' he said after launching Hadiah Bahasa Public Bank – Dewan Bahasa dan Pustaka (DBP) 2025 yesterday. Recently, Minister in the Prime Minister's Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said called on the government to consider raising the retirement age to 65, noting that many individuals at 60 remain healthy and productive. She pointed out that judges retire at 65, with some Asean countries setting the limit at 70. In Malaysia, the mandatory retirement age for civil servants is currently 60, which is also the minimum retirement age for private sector employees under the Minimum Retirement Age Act 2012. When asked about the possible extension of the tenures of three senior judges, including Chief Justice Tun Tengku Maimun Tuan Mat, Anwar replied briefly: 'We're looking at it.' On Tuesday, Tengku Maimun said she, along with Court of Appeal president Tan Sri Abang Iskandar Abang Hashim and Federal Court judge Tan Sri Nallini Pathmanathan, were still awaiting a decision on whether their tenures would be extended. Meanwhile, Anwar said Malaysians must not forget the importance of the national language, even as the country advances in development and technology. He said a developed nation should not only focus on its economy but also value its national language, arts and culture. 'It would be a grave mistake if the Madani government pursued development without giving due importance to the national language. 'While we work hard to strengthen the country's finances, we must not overlook a crucial element of nation-building, and having a strong command of our language and appreciating great works of knowledge,' he said. Anwar also reminded the Education Ministry and the Higher Education Ministry of the importance of the national language, even as some advocate placing greater emphasis on foreign languages in education. The well-known Hadiah Bahasa award has returned after 27 years, following a request from the Prime Minister last year. Now organised by DBP and Public Bank, the award aims to encourage students and professionals to produce quality work in Bahasa Melayu. First introduced in 1984 and last held in 1998, the award was established with support from Anwar, who was then patron of the Linguistic Society of Malaysia.
The Star
22-05-2025
- Business
- The Star
Public Bank rings in profit in 1Q
PETALING JAYA: Public Bank Bhd , the nation's third-largest lender by asset size, remains confident in the positive outlook for the Malaysian economy, despite acknowledging that global growth will be increasingly susceptible to policy and political uncertainties. Looking at its own operations, the lender emphasised that ensuring it remains well-capitalised at all times to support business growth is a top priority. It also aims to optimise returns to stakeholders, underpinned by a healthy capital and liquidity position. This, coupled with resilient asset quality and prudent loan loss reserves, will enable the group to generate sustainable returns, it added. Releasing its results for the first quarter ended March 31 (1Q25) yesterday, Public Bank saw a 5.6% year-on-year (y-o-y) climb in net profit to RM1.75bil, translating to an earnings per share of 9.04 sen, up from 8.52 sen. Revenue grew by 10% to RM7.31bil. The group attributed the improved performance to growth in net interest income, as well as a surge in non-interest income (NOII) contribution from its newly acquired insurance business, and higher investment and foreign-exchange (forex) income. Public Bank also saw steady growth in loans and deposits, with annualised rates of 5.6% and 3.5%, respectively. Other key financial metrics included a net return on equity (ROE) of 12.4%, a cost-to-income ratio of 35%, a gross impaired loans ratio of 0.5%, a loan-to-fund and equity ratio of 83.9%, and strong capital ratios, with Common Equity Tier 1 at 14% and total capital at 16.8%. Delving deeper into the numbers, the lender's net interest and financing income rose by 3.5% to RM2.8bil. This was supported by stable net interest margins and healthy loan and deposit growth. Meanwhile, NOII surged by 18.9% to RM772.1mil, driven by contributions from LPI Capital Bhd 's general insurance business, along with improved investment and forex earnings. Public Bank reported that the NOII growth was largely due to the recent acquisition of a 44.15% stake in the insurer, which added RM32.6mil to net profit attributable to shareholders. Notably, it anticipates further growth in NOII through synergies and cross-selling opportunities with LPI. Concurrently, Public Mutual Bhd, Public Bank's wholly-owned unit trust subsidiary, contributed RM208mil to pre-tax profit, representing 9% of the group's total. Public Mutual held a 33.9% retail market share, with RM97bil in net asset value across 185 unit trust funds. Meanwhile, domestic operations, which account for over 94% of total loans, remained solid, with a impaired loans ratio of 0.4%, significantly below the industry average of 1.4%. Public Bank reported that its loss coverage ratio stood at 159.9%, well above the industry's 91.2%, and reached 233.4% when including regulatory reserves, reflecting prudent risk management. Public Bank managing director and chief executive Tan Sri Dr Tay Ah Lek commented that despite prevailing challenges in the operating environment, the group's latest financial performance reflects the resilience and strength of its fundamentals. 'Prudent cost management yielded an efficient cost-income ratio of 35%, coupled with continued top-line growth, and ROE stood at 12.4%,' he pointed out. As of March 2025, the group's total loans reached RM430.1bil, with domestic loans growing by 6.3% to RM403.9bil, attributed to notable increases in residential property financing, hire purchase financing, and commercial property financing. 'These segments maintained strong market shares of 20.1%, 32.5%, and 32%, respectively. 'Deposits supported a solid liquidity position, with a gross loan-to-fund and equity ratio of 83.9%,' said the bank in a statement. Compared to the previous quarter ended Dec 31, the group saw a 3% decline in net profit, dropping from RM1.8bil, despite turnover increasing from RM7.06bil. The lender attributed the lower quarter-on-quarter profitability primarily to the reversal of over-provision of tax in the preceding quarter. Losses on foreign currency translation and cash flow hedges in the current quarter, compared to gains recorded in the previous quarter, as well as gains on remeasurement of defined benefit plans and revaluation of property in the prior quarter, also contributed to the difference in sequential profitability. In a report released earlier this month, CIMB Securities named Public Bank among its top picks for the banking sector, citing attractive dividend yields. However, the research house kept its 'neutral' call on the industry as a whole. An April report from Philip Capital observed that Public Bank is a 'recognised quality name' within the banking sector, consistently holding one of the highest asset qualities. Additionally, the research house noted that the lender has increased its dividend payout ratio guidance to 60% and is targeting a 2025 ROE of approximately 13%. 'Our key assumptions are a sustainable ROE of 12.7%, a cost of equity of 8.9%, and a long-term growth rate of 3.5%,' it said, while also putting a 'buy' recommendation on the counter. CIMB Securities and Philip Capital have set respective target prices of RM5.10 and RM5.30 for Public Bank. Looking ahead, the bank said it will continue to support the financing of residential properties, in tandem with the government's initiatives to promote home ownership, especially for first-time home buyers. It will also continue to support financing for the purchase of passenger vehicles and for small and medium enterprise.
The Star
21-05-2025
- Business
- The Star
Public Bank posts higher 1Q net profit of RM1.75bil
Public Bank managing director and CEO Tan Sri Tay Ah Lek KUALA LUMPUR: Public Bank Bhd reported an improved financial peformance in the first quarter of 2025 (1Q25), attributed to growth in net interest income as well as a surge in non-interest income contribution from its newly acquired insurance business. "Despite prevailing challenges in the operating environment, the Public Bank Group's latest financial performance reflects the resilience and strength of its fundamentals. "Prudent cost management yielded an efficient cost-income ratio of 35%, coupled with continued top-line growth, return on equity stood at 12.4%," said Public Bank managing director and CEO Tan Sri Tay Ah Lek in a statement. The financial group annnounced a quarterly net profit of RM1.75bil, up from RM1.65bil in the year-ago quarter, raising its earnings per share to 9.04 sen from 8.52 sen previously. This was on the back of revenue of RM7.31bil, an increase from RM6.65bil in the previous comparative quarter. During the three-month period, non-interest income increased 18.9% year-on-year (y-o-y) to RM772.1mil, mainly owing to the contribution from general insurer LPI Capital Bhd , as well as the enhanced performance of the group's investment and foreign exchange income. Public Bank's 44.15% stake in LPI saw a contribution of RM32.6mil to the group's net profit attributable to shareholders in 1Q25. The group's wholly-owned unit trust company, Public Mutual, recorded a quarterly pre-tax profit of RM208mil, which constituted 9% of the group's total pre-tax profit. "Supporting this performance was its market-leading position, with a retail market share of 33.9% and RM97bil in net asset value across 185 unit trust funds as at end-March 2025," said the group. Meanwhile, the group's net interest and financing income improved 3.5% to RM2.8bil. During the quarter, Public Bank's loans portfolio grew 6.3% to RM403.9bil on an annualised basis. The group's deposit franchise maintained a healthy liquidity position with gross loan-to-fund and equity ratio of 83.9% as at end-March 2025.
The Star
09-05-2025
- Business
- The Star
Public Bank sees minimal credit exposure to US tariff risks
KUALA LUMPUR: Public Bank Bhd sees minimal credit exposure to potential United States (US) tariff risks, estimating that less than three per cent of its total loans may be affected with asset quality expected to remain stable. Managing director and chief executive officer Tan Sri Tay Ah Lek said the bank acknowledged shareholders' concerns over the ongoing uncertainty surrounding US trade policies and their implications on Malaysia's economy and the bank. "As for Public Bank, our credit exposure to borrowers who may be directly impacted is not significant. "It is estimated that less than three per cent of total loans may be affected. Hence, asset quality is expected to remain stable,' he said during a question-and-answer session at the bank's 59th annual general meeting (AGM) today. Tay noted that the banking sector is unlikely to face direct fallout from potential US tariffs, but may be affected indirectly if broader economic conditions deteriorate as a result of trade tensions. He added that the tariff hikes are currently on hold, offering temporary relief. "We are confident that we will continue to sail through the current uncertainty from a position of strength. "As for our regional operations, the respective governments are currently negotiating and exploring strategies to mitigate the potential adverse impact,' he said. While the final outcome remains uncertain, Tay said the bank has already taken precautionary measures to ensure greater prudence in its lending activities. In another development, Tay said Public Bank is targeting a higher dividend payout of 60 per cent of the group's net profit for the financial year 2025 (FY2025), depending on the financial performance, capital conservation and also subject to regulatory approval. In FY2024, the bank paid total dividends of RM4.08 billion, representing 57 per cent of its net profit, or 21 sen per share. During the AGM, shareholders approved all five resolutions tabled. It was chaired by chairman Lai Wan and attended by the board of directors, members of senior managements and shareholders. - Bernama
The Star
09-05-2025
- Business
- The Star
Trading ideas: Lotte, PetGas, Sunway, Public bank, Green Packet, Kerjaya, GenM, MGRC, TechStore, PEOPLElogy, HHRG, MNC, Pentamaster, Pavilion REIT, BFood
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Lotte Chemical Titan has secured a 10-year ethylene supply contract from PT Asahimas Chemical that is valued at more than RM743.5mn. Petronas Gas Bhd has entered into shareholders' agreements with Sabah Electricity Sdn Bhd and Sabah Energy Corp Sdn Bhd to jointly develop a new 120MW power plant in the Federal Territory of Labuan. Sunway Bhd has received the nod to develop a 20.8-acre plot of land belonging to Railway Assets Corp in the heart of the Seremban city centre, which will have an estimated gross development value of RM2.2bn. Public Bank Bhd , Malaysia's third largest bank by assets, plans to raise its dividend payout to 60% of net profit in 2025, up from 57% in 2024, subject to usual factors including regulatory approval, CEO Tan Sri Tay Ah Lek announced at the AGM. Green Packet Bhd has proposed a share capital reduction to offset RM340mn in accumulated losses. Kerjaya Prospek Group Bhd has secured a RM162mn building contract from Majestic Gen Sdn Bhd for a project in Johor Bahru. Genting Malaysia Bhd 's proposed USD41mn acquisition of the remaining 51% stake in Genting Empire Resorts LLC from the Lim family's Kien Huat Realty III Ltd—giving it full control of loss-making Empire Resorts Inc—has drawn scrutiny from Bursa Malaysia. Malaysian Genomics Resource Centre Bhd has proposed a private placement exercise to raise up to RM2.5mn, alongside a reduction of its issued share capital by RM42mn, as part of its efforts to improve its financial position and fund working capital. TechStore Bhd's wholly owned subsidiary, Tech-Store Malaysia Sdn Bhd, has secured a RM15.9mn contract from the Home Affairs Ministry. PEOPLElogy Bhd, which provides consultancy services and training, saw its IPO oversubscribed by 0.24 times. HHRG Bhd has dismissed CEO Fong Chee Khuen for serious misconduct and abuse of authority, following his suspension on April 7, 2025, over concerns about his financial transactions and personal conduct. MNC Wireless Bhd announced on Thursday that it had received a formal notice regarding the resignation of its auditor, Chengco PLT, effective immediately, prompted by uncertainties concerning the registration status with the Audit Oversight Board of the Securities Commission Malaysia. Pentamaster Corp Bhd 's net profit slipped by one-third to RM13.1mn for the 1QFY25, from RM19.4mn a year ago due to lower revenue and changes in sales mix. Pavilion Real Estate Investment Trust reported a 5% rise in net property income to RM142.8mn for the 1QFY25 — from RM136.0mn a year earlier — driven by higher rental income from Pavilion Bukit Jalil and Elite Pavilion Mall. Berjaya Food Bhd 's net loss widened to RM37.2mn for the 3QFY25 – marking its sixth straight quarterly loss – compared to RM29.8mn a year earlier, mainly due to weaker performance from its Kenny Rogers Roasters operations.
