KUALA LUMPUR: Public Bank Bhd expects to maintain its earnings payout ratio and record another satisfactory year after achieving a record net profit of RM3.48bil for the financial year ended Dec 31, 2011. At its AGM yesterday, shareholders showed their appreciation by giving rousing cheers and applause.
Chairman Tan Sri Thong Yaw Hong said the bank would continue to maintain its performance and create more shareholder value. Responding to questions posed by shareholders and the Minority Shareholder Watchdog Group, he said the bank had no immediate succession plan yet.
Chairman Tan Sri Thong Yaw Hong said the bank would continue to maintain its performance and create more shareholder value. Responding to questions posed by shareholders and the Minority Shareholder Watchdog Group, he said the bank had no immediate succession plan yet.
“The board is not desirable of an inflexible and rigid time frame for new appointment of directors. What is important and essential is for the board to have stability, continuity and commitment to discharge its responsibilities,” Thong said.
When asked on the Government's policy for women to hold at least 30% of decision-making posts, Thong said board diversity would make a good gender representation.
“However, board diversity should be in tandem with expertise, experience, skills and not gender per se,” he said.
The atmosphere at the AGM, held in a swanky hotel here, was pompous with a number of security personnel present.
During the AGM, shareholders gave a standing ovation to Public Bank founder and chairman Tan Sri Teh Hong Piow, given the bank's stellar performance under his stewardship.
Teh, who turned 82 on March 14, was flushed with a healthy glow and appeared to be in good health. He arrived in style in his dashing brand new Rolls-Royce.
Birthday wishes: Public Bank Bhd founder and chairman Tan Sri Teh Hong Piow shaking hands with a well-wisher after the group’s AGM. Teh celebrated his 82nd birthday on March 14. The bank pledges to maintain its performance and create more shareholder value. – Starpic /ART CHEN
A shareholder even led the other 5,500 shareholders in the ballroom to sing a spirited rendition of “Happy Birthday To You”, followed by “May The Good Lord Bless You” to Teh.
Meanwhile, chief operating officer Leong Kwok Nyem said the bank's intention was to broadly maintain its dividend payout of half of its earnings, while allowing the bank to retain the other half to sustain the bank's growth and capital requirements.
For 2011, the bank paid a total of RM1.68bil as dividends to shareholders, which translated to a total dividend of 48 sen per share, or 48% of the group's net earnings.
Its net profit jumped 14% from RM3.05bil in 2010 to RM3.48bil on the back of healthy growth in net interest income and lower credit charges, with gross loans expanded by 13.5% to RM177.7bil.
“The bank is well capitalised to meet the requirements of the Basel III norms, and all capital ratios are healthy,” he said.
Under Basel III, restrictions on dividend payments and executive pay will be imposed on banks if their capital falls below 7% of their assets, measured on a risk-weighted basis.
The new regulations will also require banks to keep more liquid assets to meet their daily funding needs for 30 days.
Responding to a shareholder's enquiry on the 29.8 million Public Bank shares held in the bank's treasury worth RM420mil, he said it accounted for less than half of 1% of the bank's share capital, which made it impractical to distribute the shares back to shareholders.
“It will be less than one share per 100 shares held by shareholders. The bank is in the position, should the market be appropriate, to realise the value of the shares through an open market sale, which would also enhance its share capital,” he said.
Tuesday March 20, 2012
By CHOONG EN HAN
han@thestar.com.my
