Public Bank’s 4Q20 earnings decline on higher loan impairment allowance

by TMR/ FILE PIX

Public Bank Bhd’s net profit fell 18.3% to RM1.15 bil in the fourth quarter ended Dec 31, 2020 (4QFY20) from RM1.41 bil posted in the same quarter a year ago due to higher loan impairment allowance made in the anticipation of the potential effect of COVID-19 pandemic.

The bank in a filing to Bursa Malaysia today noted that while its revenue fell 13.4% to RM4.92 billion from RM 5.67 bil posted a year.

“The decrease was mainly due to higher loan impairment allowance made by RM513.3 million due to preemptive allowance set aside in anticipation of the potential effect of COVID-19 pandemic,” it noted.

However Public Bank said these were partially offset by higher net fee and commission income by RM121.6 million on higher income from fund management and stockbroking businesses, and higher net income from Islamic banking business by RM48.8 million.

The group announced an interim dividend of 13 sen to be payable on March 22.