Background of Public Bank Berhad

What was conceptualised as a bank for the public,Public Bank commenced business
on the 6th of August 1966 which was founded by Tan Sri Dato' Sri Dr. Teh Hong Piow who is
also the chairman.On April 6,1967 it was listed on the Kuala Lumpur Stock Exchange
(KLSE).Now Public Bank has grown into a premier banking group in Malaysia with overseas
presence in countries like Hong Kong,China,Laos,Vietnam and Cambodia.

To Public Banks credit it has progressed to become a leading financial services

provider in Malaysia offering a variety of financial products and services covering and also
personal banking, commercial banking, Islamic banking, investment banking, share broking,
trustee services, nominee services, sales and management of unit trust funds, bancassurance
and general insurance products.

As of now Public Bank Group has 377 branches and 17600 employess catering to
the financial needs of over 8 million employees around Malaysia and also at other countries
which it operates in.
By the end of 2012 Public Bank recorded a total assets of RM274.62 billion.This
makes it the 3rd largest banking group in Malaysia and number six in terms of asset size in
whole of Southeast Asia.Not only that Public Bank is also the largest non-government-linked
corporation in Malaysia with a market capitalisation of RM57.52 billion as recorded at the
end of 2012

In the last 46 years Public Bank has a very strong and impressively consistent
record of profitability.By doing so it has shown its impeccable ability to meet its keyperformance indicators (KPIs) and brand promise to its loyal and increasing number of
customers.Public Bank brand is built based on its integrity,honesty and excellent service
delivery.On top of that,it is greatly respected for its accountability, excellent corporate
governance, strong corporate culture, prudent management and competitive products and
services.

Related Information On Product

Public Bank Berhad is very keen on growing on its market share in its retail lending
and deposit-taking businesses not only in the domestic market but in the overseas market as
well.It has a very effective and efficient business strategy mainly because it has a proven
ability of executing its core business strategies as well as building a strong innovation
capability and capacity.It is also done by offering a wide range of competitive financial
packages to its increasingly amount of demanding customers.

In recent years Public Bank Group has been working hard in bulding a strong
reputation in the deposit-taking business.The results have been overwhelming for the Group
as customer deposits have grown steadily not only in terms of deposit customer base but also
in terms of the amount of deposits placed with the Group.At the end of 2012,the Group
recorded a highly impressive total growth of 13% of total deposits from customers of Public
Bank Berhad Malaysia.What makes it much more impressive is the fact that this growth rate
is way higher than domestic banking industry's growth rate of 8.4%.This only points out to
the fact that customers in Malaysia have placed a high amount of confidence in Public Bank
to safeguard their funds.This makes the Public Bank brand to have a very high reputation in
Malaysia.

To keep its constitency in business growth and increasing its market share in retail
banking Public Bank Group highly depends on its well-established customer service
infrastructure and processes and practices to deliver prompt and consistent service to meet the
needs of its customers.

Current issues of financial institution

Public Bank Launched PB FD Fortune Campaign

Public Bank has launched a new fixed deposit (FD) campaign, which was called PB FD
Fortune Campaign introduced on 1 January 2013 to further grow their customers fortune for
the Chinese New Year and available at all branches nationwide and they offer higher fixed
deposit interest rate.
This campaign was opened to individual customers for both personal and joint accounts. To
participate into this campaign and enjoy the campaign benefits, a minimum placement
amount of RM10000 is required. 80% of the total placement amount will be deposited into a
6-Month PLUS Fixed Deposit to enjoy the special interest rate up to 4.88% per annum, while
the remaining 20% will be placed into the PLUS Savings Account. The maximum amount of
placement per customer is limited at RM500000, therefore more customers will be able to
enjoy the special interest rate.

Public Bank Launched PB Super FD Rates Campaign

After the earlier PB FD Fortune campaign which ended on 31 March 2013, Public Bank has
launched its second fixed deposit (FD) campaign for year 2013 themed as PB Super FD
Rates.
The campaign is mainly to provide and supply to individual customers who are looking for
long-term FD placement with higher step-up interest and yet receive regular monthly interest
payment.
The PB Super FD Rates offer high fixed deposit rates step-up to 6.88% per annum to
individual customers. To participate in this campaign, individual customers are required to
place a minimum of RM10000 new funds. From the total placement amount, 80% would be
placed under 1-Month PLUS Fixed Deposit (PLUS FD) auto-renewable for 12 consecutive
months at a step-up rate while 20% of the funds would be deposited into PLUS Savings
Account for earning interest at the current prevailing and persisting rate. Each individual
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customer is allowed to place up to a maximum of RM 3 million under this campaign.

Besides, customers will also be given the flexibility to withdraw the fixed deposit at any time
and still be entitled to the persisting 1-month PLUS FD counter rate without any penalty. This
flexibility will give and provide non worries to the customer peace of mind in case they
require the funds urgently before the 12-month lock-in period.
The PB Super FD Rates campaign is started from 3 June 2013 to 30 September 2013.

Public Bank Provides Opportunities For Its Staff Through The Signing Of An MOU
with IBBM
Public Banks signing of a Memorandum of Understanding with Institute Bank-Bank
Malaysia (IBBM) to impact and provide training and education through the Charted Banker
Education Pathway for its employees, constitutes and improve a partnership in excellence.
Ms. Koay Seok Khim, General Manager, Knowledge and Learning signed the MOU on
behalf of Public Bank. With this launch, Public Bank once again demonstrates the value that
it places on the needs of their human assets by ensuring that their knowledge and skills
remain contemporary and relevant.
Meanwhile, IBBMs CEO, Tay Kay Luan commented that it was heartening to note that
Public Banks strong culture of learning also extends beyond Malaysia. Tay sharing his
experience on his recent visit to Phnom Penh, and indicated that the Cambodian Public Bank
did express an interest in IBBMs qualifications too.
Public Bank is confident that with the Governors continued support, Malaysia will have a
competitive, blooming and thriving financial workforce for the countrys transition to being a
high income growth economy.
The Charted Banker qualification, which is recognized as the gold standard for professionals
working in the banking sector is highly aimed at embedding high ethical, professional and
technical standards in the workplace.
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The dissemination and spreading of knowledge online will also benefit both the Bank and its
potential candidates. Not only is it cost effective, but the methodology used is uniquely
appropriate and capture to the younger generation of employees who are tech savvy and value
flexibility.
Therefore, Public Bank lauds IBBMs endeavour and strive to engrain a culture of
professionalism and integrity within the banking industry in Malaysia. Koay further indicated
that Public Bank has been supportive of the many accredited and certified programmes
offered under the umbrella of IBBM; not least the CCP qualification where they have
currently a pool of about 900 CCP qualified personnel.
The Charted Banker Programme which is up to date, high quality and relevant will enable
banking professionals to really to get a good grip on the nuts and bolts of the industry.
Public Bank And Resona Bank To Collaborate
Public Bank Berhad and Resona Bank, Ltd. had recently entered into a Memorandum of
Understanding (MOU) to further strengthen and fortify the business collaboration between
the two banks in various strategic areas of cooperation on the basis of equality and mutual
benefit.
The primary objective of the business collaboration is proposed to leverage upon the
respective strengths and expertise of Public Bank and Resona Bank. In addition, this can also
enable the two banks as well as their respective affiliates to institute and promote to their
customers with the appropriate banking products and services in Malaysia and, particularly
cross border banking transaction and services, which include credit verification, referrals and
others.
The number of Japanese corporations commencing operations in the ASEAN countries is
increasing. The business collaboration between the two banks will strengthen the banking
services support to the customers of Resona Bank, especially in the markets where Public
Bank has strong network presence namely Malaysia, Vietnam, Laos and Cambodia. The
business relationship between Public Bank and Resona Bank has already commenced since
1967 (established through merger of former Asahi Bank and Daiwa Bank). This MOU is
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trying to further strengthen the business collaboration between Public Bank and Resona Bank.
Resona Bank, is a wholly-owned subsidiary of Resona Holdings, the fourth-largest banking
group in Japan and has a strong business presence in the greater Tokyo metropolitan area and
the Kansai religion, where the Japans economic activities and population are concentrated.
This business collaboration will facilitate Public Banks customers to benefits from the wide
religion alliances of Resona Bank and is set to bring about set to bring about business
synergies and value-added service propositions to customers of both Banking Groups.

Public Bank Donated Two Mobile Police Station Worth RM328000

Public Bank donated 2 mobile police station to the Royal Malaysian Police worth RM328000
to give assistance in increasing police presence in identified areas under its Crime Awareness
Programme.
Founder and Chairman of Public Bank, Tan Sri Dato Sri Dr. The Hong Piow added that
Public Bank has been supportive of the various crime prevention initiatives undertaken by
Royal Malaysian Police and he hope that the contribution of the 2 units of the mobile police
station will facilitate the Royal Malaysian Polices effort in enhancing the safety of countrys
communities and promote a better living environment.
These two mobile police station which are Toyota Hiace Window Vans fully-equipped with
the required accessories were handed over to the Deputy Commissioner of Police, Dato Wira
Ayub bin Hj. Yaakob, on behalf of Tan Sri Chairman at a ceremony.
Dato Wira Ayub represented of The Royal Malysian Police thank Tan Sri The Hong Piow and
welcomes the initiatives by Public Bank to work together with the police force to provide
security infrastructures for the country and added that two mobile police stations were
improve current facilities thus directly help for beefing up the effort in providing peace,
safety and power security to the society.

Public Banks 47th Annual General Meeting Held On 18 March 2013

Founder and Chairman of Public Bank, Tan Sri Dato Sri Dr. Teh Hong Piow is pleased to
present a review of the Public Bank Groups performance in 2012 during the Public Banks
47th Annual General Meeting held on 18 March 2013.
I.

Performance Review: Tan Sri Teh announced that the Public Bank Group achieved
another new milestone in 2012 with a record pre-tax profit of RM5.10 billion which
was successfully crossed the RM5 billion for the first time and the amounted RM3.87
billion for the full year Groups net profit. He also highlighted that the Groups pre-tax
profit and net profit for 2012 were 4.6% (from RM4.88 billion in 2011 increased to
RM5.10 in 2012) and 5.0% (from RM3.68 billion in 2011 grew to RM5.10 billion in
2012) higher than the restated corresponding profits in 2011.

II.

Healthy Loan Growth: Lending to the retail banking segment remained the main
strategic focus of the Public Bank Group with concentration in lending to small and
medium sized enterprises (SMEs), purchasing of passenger vehicles and financing
of residential properties and the Groups retail loan portfolio collectively accounted for
85.9% of its total loans at the end of 2012.

III.

Excellent Asset Quality: The Groups asset quality has consistently remained the best
in the banking industry, an effective credit assessment, approval, monitoring as well as
prompt and timely recovery efforts and a testimony to the Groups prudent credit
policies. Besides, due to the full adoption of MFRS 139, Public Bank Groups loan
loss coverage ratio stood at 126.0%, which was higher and more prudent than the
banking industrys coverage ratio of 100.9% despite the write-back of excess
collective assessment allowances.

IV.

Steady Customer Deposit Growth: Public Bank Groups domestic customer deposits
grew by 13.0%, higher than the domestic banking industrys growth of 8.4% was
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mainly due to healthy expansion of fixed deposits (14.4%), low cost demand (14.0%)
and saving deposits (8.2%), outperforming the banking industrys growth rates of
8.8%, 12.1% and 7.0% respectively. Groups funding position remained robust,
supported by its strong retail franchise and large domestic depositor base of over 5
billion customers and its net loan to deposit ratio remained healthy and stable at 87.1%
as at the end of 2012.

V.

International Operations: The Public Bank Group remains committed to expand its
overseas business and as the end of 2012, the Groups overseas operations contributed
6.4% of the Groups overall pre-tax profits. The Group has 122 overseas branches,
with 83 branches in Hong Kong, 3 in Shenzhen in the Peoples Republic of China, 7 in
Vietnam, 4 in Laos, 1 in Sri Lanka, 24 in Cambodia (In 2012, Cambodian Public Bank
Plc (Campu Bank), a wholly-owned subsidiary of Public Bank, reported a strong
pre-tax profit growth of 22.2% from RM88.9 million in 2011 to RM108.5 million in
2012, achieved loans growth (11.1%) and deposit growth (17.6%) and continued to be
ine of the top 3 largest banks in Cambodia), and 3 representative offices in Shanghai,
Shenyang and Taipei.

VI.

Second Largest Listed Company by Market Capitalisation: Since the end of 2008,
Public Banks market capitalisation has increased by 85% to RM57.52 billion as at the
end of 2012 and is currently the 2 nd largest company on Bursa Malaysia and remains
the largest non-government-linked company by market capitalisation.

Recommendations / Suggestions / Opinions for Public Bank

Firstly, the Public Bank Group should concern on groups prospect. They must
continue to focus on its core retail banking and financing business whilst maintaining its
prudent credit policies, and further improve on its cost efficiency. The Group expects its
strong asset quality to be sustained and will continue to leverage on the strong PB Brand
Franchise and its wide and efficient branch network to deliver balance sheet and revenue
growth. The Group remains steadfast in its commitment to upholding strong corporate
governance and implementation of sound risk management policies to support long term
growth.

In addition, they should continue to develop its fee-based income from unit trust, be
assurance and wealth management products, in order to further enhance the Groups
profitability and return on equity. Public Mutual Berhad, the Groups wholly owned unit
trust fund management subsidiary, remained the clear market leader in the private unit trust
industry with an overall market share of 42%.Public Mutual Berhad continues to build and
nurture its large agency force, a highly effective distribution channel to drive the Groups
unit trust business.

To improving economic sentiment, the Public Bank Group continued to record a

strong increase in total loan and advances of RM4.8 billion. The lending activities remained
focused on the retail sector, particularly in loans to mid-market commercial enterprises as well
as loans for the financing of residential properties and purchase of passengers vehicles, which
accounted for 78% of the total loan portfolio of the Group.

Furthermore ,launch more attractive deposit campaign and products .To enable the
customer to enjoy more benefit while saving with the bank, Public Bank has launched its
second fixed deposit (FD) campaign for year 2013 themed as PB Super FD Rates. This
campaign enable to the customer who are looking for long term FD placement with higher
step-up interest and yet receive regular monthly interest payment. Besides ,customer will also
be given the flexibility to withdraw the fixed deposit at any time and still entitled to the
prevailing 1 month PLUS FD counter rate without any penalty. This flexibility will give the
customer peace of mind in case they require the funds urgently before the 12 month lock - in
period .It is a simple way to increase interest income without having to sacrifice too much
short term requirement of funds.

Lastly, merge its local and foreign shares .Public bank proposed to merge its local and
foreign shares without any form of compensation to shareholders, whether local or foreigners.
The purpose is to maintaining two types of shares ,in order to ensure that the foreign
shareholder (by voting rights) in the banking groups is limited to a maximum of 30 percent
but this can be achieved with the electronic trading system. This exercise will be slightly
positive for Public Bank as it will avoid any confusion for some investors, especially
foreigners and eliminate the related administrative costs for maintaining two classes of shares.

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Conclusion
This assignment is regarding of information about Public Bank. Public Bank is a leading
provider of financial services in Malaysia with banking operations in Hong Kong and China,
Cambodia, Vietnam, Laos and Sri Lanka. In Malaysia, Public Bank is one of the most
efficient banks as reflected by its low cost to income ratio. The Public Bank Group has over
17,160 staff, with 90% of the staff in Malaysia and the rest in its overseas operations in Hong
Kong and China, Cambodia, Vietnam, Laos and Sri Lanka. Public Bank was established in
August 1966 by its Founder and Chairman, Tan Sri Dato Seri Dr. Teh Hong Piow.
As a commercial bank, Public Banks features of major product traded is basic saving
account with minimum amount of RM250.00 to open a new account, Fixed deposit of at least
one month, wise savings account the will have inclusive of bonus interest of 5 percent, and
foreign currency fixed deposit rates of minimum placement of RM10, 000.00 equivalent of
foreign currency amount.
The suggestion given for Public bank is Public Bank should concern on groups prospect,
focus on its core retail banking and financing business whilst maintaining its prudent credit
policies, develop its fee-based income from unit trust, be assurance and wealth management
products, launch more attractive deposit campaign and products to enable the customer to
enjoy more benefit while saving with the bank, and merge its local and foreign shares without
any form of compensation to shareholders.

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Reference

Public Bank Launched 'PB FD Fortune' Campaign. (2013, February 19). Public Bank Berhad.
Retrieved February 16, 2014, from:
http://www.pbebank.com/corporate/cnt_press372.html

Public Bank's 47th Annual General Meeting. (2013, March 18). Public Bank Berhad.
Retrieved February 16, 2014, from:
http://www.pbebank.com/corporate/cnt_press373.html

Public Bank And Resona Bank To Collaborate. (2013, May 20). Public Bank Berhad.
Retrieved February 16, 2014, from:
http://www.pbebank.com/corporate/cnt_press375.html

Public Bank Provides Opportunities For Its Staff Through The Signing Of An MOU with
IBBM. (2013, May 22). Public Bank Berhad.
Retrieved February 16, 2014, from:
http://www.pbebank.com/corporate/cnt_press376.html

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Public Bank Launched 'PB Super FD Rates' Campaign. (2013, June 17). Public Bank Berhad.
Retrieved February 16, 2014, from:
http://www.pbebank.com/corporate/cnt_press377.html

Public Bank Donates Two Mobile Police Stations. (2012, October 12). Public Bank Berhad.
Retrieved February 16, 2014, from:
http://www.pbebank.com/corporate/cnt_press368.html

Top Management And Head of Division.(2009). Public Banks 2009 Annual Report.
Retrieved February 18, 2014, from:
http://announcements.bursamalaysia.com/EDMS/hsubweb.nsf/0/48256aaf0027302c48256ba7
002bb0f3/$FILE/PBBank-TopMgmt-AuditCmt-ChairmanStatement-President'sReview
%20(875KB).pdf

Public Bank Launched 'PB Super FD Rates' Campaign. (2013, June 17).
Retrieved February 18, 2014, from:
http://www.4-traders.com/news/Public-Bank-Bhd--Public-Bank-Launched-PB-Super-FDRates-Campaign--17026040/

46-Year Journey of Growth. (2014). Public Bank Berhad.

Retrieved February 19, 2014, from:
http://www.pbebank.com/corporate/

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