To Raise at least RM1 billion from Bond Sale

PUBLIC Bank Bhd (1295), the country's third biggest lender, plans to raise at least RM1 billion from a bond sale this year to improve its capital position.

The debt will take the form of Tier-1 capital securities and subordinated debt securities, Public Bank chief operating officer Leong Kwok Nyem said.

4th Quarter Results
Net profit rose 13 per cent due to lower tax charges.
Quarterly pre-tax profit dropped 1 per cent as it set aside more money to cover potential bad loans.

A net profit of RM654 million for the quarter to December 31 2008.
Net interest income, or interest on loans after deducting those paid out for deposits, rose 9.2 per cent to RM952 million.

For Full Year
Net profit rose 22 per cent to RM2.58 billion, driven by healthy growth in net interest and financing income and other operating income.

Dividend
Proposed a final cash dividend of 25 sen and a share dividend of 33.7 sen.
Together with the 30-sen interim cash dividend declared earlier, this makes a total of 88.7 sen a share for the year, or a payout of RM2.22 billion.

Public Bank's strategy this year is to focus on the consumer and small- to medium-sized enterprises (SMEs) as well as expand its depositor base.

It aims to grow loans by about 15 per cent this year, Public Bank managing director Datuk Seri Tay Ah Lek said.

"This means an additional RM18 billion to the group's total loan outstanding. This is a respectable number," he added.

The group's net non-performing loan (NPL) ratio further improved to 0.86 per cent per cent last year, which was about a third of the banking industry's net NPL ratio of 2.4 per cent.