PBB remains proactive in sustainable financing

PETALING JAYA: Public Bank Bhd (PBB) has mobilised more than RM53bil of sustainable finance since 2020 that covers financing portfolio such as energy efficient vehicle financing, affordable home financing, corporate loans and green financing facilities.

The bank said it remains committed to drive sustainable best practices in line with its Sustainability Roadmap, targeting to mobilise a total of RM100bil in sustainable finance by 2030.

It said it will continue to develop and promote financial products and services that integrate environmental, social and governance considerations into various aspects of banking while proactively incorporates climate risk into its credit assessment process and identify new green financing opportunities.

Managing director and chief executive officer Tan Sri Tay Ah Lek said the banking group will continue to be vigilant and agile, balancing growth and risks amid the changing business environment.

“With the Malaysian economy expected to remain stable, supported by domestic demand, we will continue to drive business growth, riding on potential growth opportunities,” he said in a statement.

He said the bank will remain proactive in monitoring market developments and implementing strategic initiatives to maintain its market share in the financing, deposit and unit trust while ensuring it remains well-capitalised and well-funded.

“Coupled with its resilient asset quality and prudent loan loss reserves, these will enable the group to generate sustainable profit, moving forward,” he added.

In terms of overseas operations, PBB has further expanded its business footprint in the fast-growing Indochina region.

Public Bank Vietnam opened eight new branches in 2023, bringing the total number of branches to 40.

“Today, with a total of 76 branches in Indochina, the group is well-positioned to capture opportunities within the Indochina region,” Tay noted.

For its financial year ended Dec 31, 2023 (FY23), PBB reported a net profit of RM6.65bil, up 8.7% from RM6.12bil in FY22, owing to growth in loans and deposits, improvement in non-interest income and lower loan loss allowances.

The bank’s total gross loans and financing grew by 5.9% to RM399bil as at end-2023.

Within the small and medium enterprise (SME) space, PBB has 17.9% market share in domestic SME financing.

In terms of funding, the bank’s customer deposits grew by 4.6% to RM412.9bil in 2023.

Tay highlighted that in 2023, PBB is the most cost-efficient bank in Malaysia with the lowest cost-to-income ratio of 33.7%, as compared to the industry’s average cost-to-income ratio of 48.3%.

In terms of asset quality, the group’s domestic gross impaired loan ratio of 0.4%, better than the banking industry’s gross impaired loan ratio of 1.6%.

“The group’s resilient net return on equity of 13% was also well above the domestic banking peers’ average net return on equity of 10%,” Tay added.