16 theSun | WEDNESDAY JANUARY 21 2009

business

Hang Seng S&P/ASX200 TSEC KLCI STI KOSPI Nikkei

12,959.77 3,476 4,242.61 880.37 1,720.58 1,126.81 8,065.79
380.22 112.70 124.15 9.91 26.41 23.84 191.06

Public Bank posts RM3.38bil

pre-tax profit for FY08
KUALA LUMPUR: Public Bank
Bhd posted a pre-tax profit of
RM3.38 billion for the financial
year ended Dec 31, 2008, compared
with RM3 billion a year earlier.
Revenue rose to RM10.5 billion
versus RM9.55 billion.
“The strong profit performance
was contributed by healthy growth
in net interest and financing in-
come and other operating income,
its managing director Tan Sri Tay
Ah Lek, said yesterday.
With the improved results last
year, the group’s net return on eq-
uity increased further to 30.4% in
2008 against 26.3% in 2007 while
earnings per share rose to 76.9 sen
from 63.3 sen in 2007.
Net interest and Islamic bank-
ing income increased by RM564
million or 15% to RM4.29 billion
last year, driven by the sustained
high rate of growth in both quality
loans as well as customer deposits
and continued improvement in
asset quality.
Total loans and advances ex-
panded by 19% or RM19.3 billion
to RM120.3 billion as at end-2008,
with loan market share rising to
14.9% from 14.4% in 2007, he said.
Total customer deposits ex-
panded 17% to RM162.3 billion,
AmFIRST ups stake in
leading to a higher market share of
core deposits of 15.2% from 13.7%
Summit Subang USJ
at end-2007. by Tim Leonard
The bank’s
risk-weighted The strong profit newsdesk@thesundaily.com
capital ratio performance PETALING JAYA: Am ARA
remains strong was contributed
at 13.1% after REIT Managers Sdn Bhd
deducting the by healthy growth (Am ARA), the managers
proposed divi- in net interest and of AmFIRST Real Estate
dends while the financing income Investment Trust (AmFIRST)
amount of gross entered into a conditional
non-performing and other operating sale and purchase agree-
loans (NPLs) de- income.” ment to acquire three floors
creased by 14% to – Tan Sri Tay Ah Lek of office space which it does
RM1.21 billion at not own at Menara Summit
end-2008. in Subang USJ.
The NPL ratio was 0.86%, The total purchase
which was about one-third that of consideration of the three
the banking industry. floors, with a layout of
Public Bank said it achieved a
loan growth rate of 19% in 2008, 36,166 sq ft, is valued at
well above the banking industry’s RM11.23 million
November 2008 year-on-year Menara Summit is an of-
growth rate of 11%, with total fice tower block of a mixed
loans, advances and financing commercial development
increasing by RM19.3 billion to known as The Summit
RM120.3 billion. – Bernama Subang USJ and comprises
an office tower, a hotel block
and a retail podium.
AmFIRST had earlier
completed the acquisition
of the developer’s unsold
interest in the strata de-
velopment on March 31
last year. Two of the three
floors are being acquired
from Salcon Resources Sdn
Bhd while the third from
Insight Air-Conditioning Systems
Design Sdn Bhd.
into Both acquisitions have
the Ox been structured with an
year income guarantee from Sal-
con Bhd, a company listed
pg 20 on Bursa Malaysia, and Air-
Conditioning Systems Design
Sdn Bhd respectively.
The two floors acquired
from Salcon will be ten-
anted to the Salcon group,
which is now occupying the
premises.
With the acquisition, Am-
FIRST, through its trustee, May-
ban Trustees Bhd, would own
12 of the 13 floors of offices at
Menara Summit, or 144,667 sq
ft out of the total office strata
area of 156,723 sq ft – working
out to 92% ownership of the
total office space.
Looking at the total
combined office and retail
strata space at the whole de-
velopment, AmFIRST would
be increasing its ownership
from 67% to a strategic 70%
(excluding the hotel block
and car parks, which are fully
owned by AmFIRST).
Am ARA chief executive
officer Lim Yoon Peng said
the acquisition will enhance
the company’s strategic
control of the whole strata
development at The Summit
Subang USJ and facilitate the
asset management planning
and implementation to im-
prove asset performance.
“For a start, we will soon
be commencing a reposi-
tioning exercise for the retail
complex to make it a shop-
ping-cum-entertainment
destination. In addition, we
are also looking at doing
some renovation to upgrade
the hotel guestrooms to
cater to the needs of guests
and remain competitive,”
said Lim.
“We also intend to con-
tinue leveraging on our asset
management capability to
ensure our assets perform
to their maximum potential
and deliver good earnings to
our unitholders,” he said.

market summary JANUARY 20, 2008

KLCI stays INDICES CHANGE

south FBMEMAS
COMPOSITE
5,764.35 -63.84
880.37 -9.91
SHARE prices on Bursa Ma- INDUSTRIAL 2,081.20 -3.03
laysia ended the day lower CONSUMER PROD 285.34 +0.76
INDUSTRIAL PROD 66.81 -0.62
on persistent profit-taking
CONSTRUCTION 165.38 -1.11
activities in heavyweights TRADING/SERVICES 116.34 -1.30
and lower-liners, with most FINANCE 6,875.58 -109.63
finance counters extending PROPERTIES 534.35 -2.71
losses, dealers said. PLANTATIONS 4,341.60 -30.92
At the closing bell, the MINING 249.25 UNCH
KLCI dropped 9.91 points or FBMSHA 6,001.17 -65.18
1.113% to 880.37. FBM2BRD 3,939.52 -43.38
TECHNOLOGY 12.86 -0.25
The KLCI opened 4.46
points lower at 885.82 in the TURNOVER VALUE
morning compared to Mon- 375.820mil RM439.119mil
day’s closing of 890.28.
The dealers said market
players took in profits ahead of the Chinese New Year holiday next
week and amid worries that the US financial crisis had spread to
Europe.
According to them, fears of the financial crisis in Europe seem
to be affecting the local and regional bourses, especially after the
Royal Bank of Scotland in the United Kingdom, announced massive
losses.
MIMB Investment Bank said the market is anticipating more nega-
tive news on the economy such as surprise unemployment data,
adding that the imminent Chinese New Year holiday may add more
fatigue to the current market. – Bernama