Hong Leong Bank Berhad
Stock Code: 5819
Market Capitalization: RM88 billion (as at 28/2/25)
Public Bank is the third largest company on Bursa Malaysia in terms of market value and total assets. Founded in 1966 by the late Tan Sri Dato Sri Dr Teh Hong Piow, its foundation is deeply rooted in the vision of serving the banking needs of the people, hence its tag line “Bank For The People”. With total assets of RM543 billion as at 31/12/24, Public Bank ranks after Maybank and CIMB Group each with RM1,075 billion and RM755 billion respectively in total assets. At a closing share price of RM4.53 as at 28/2/25, it is trading at a Current PE Ratio of 12.3x and Dividend Yield of 4.6%.
| YE 30-Jun | 2021 | 2022 | 2023 | 2024 |
| Profit Before Tax (RM mil) | 3,471 | 4,367 | 4,627 | 5,134 |
| Net Profit After Tax (RM mil) | 2,861 | 3,289 | 3,818 | 4,196 |
| EPS (RM) | 1.397 | 1.605 | 1.863 | 2.047 |
| DPS (RM) | 0.50 | 0.55 | 0.59 | 0.68 |
| Net Loans (RM mil) | 154,071 | 166,488 | 179,903 | 193,304 |
| Customer Deposits (RM mil) | 183,290 | 197,293 | 211,652 | 220,433 |
| Shareholders Funds (RM mil) | 29,459 | 30,989 | 33,987 | 37,294 |
| No of Shares (millions) | 2,168 | 2,168 | 2,168 | 2,168 |
| Share Price – High | 19.40 | 21.34 | 21.52 | 20.12 |
| Share Price – Low | 14.00 | 17.82 | 18.46 | 18.84 |
| Share Price – Close | 18.72 | 20.46 | 18.96 | 19.20 |
KEY STRENGTHS
Public Bank is a market leader in retail banking in Malaysia. For the year ending 31/12/23, Retail Banking Operations generated RM4.1 billion in Profit Before Tax (PBT), which is surpassed only by Maybank’s Community Financial Services segment which generated RM5.7 billion PBT for the same period, while ahead of CIMB Group’s Consumer Banking segment at RM3.0 billion PBT. Through its 100% owned subsidiary Public Mutual Berhad, Public Bank is Malaysia’s market leader in Funds Management with more than RM100 billion in Assets Under Management, generating RM798 million PBT for the group.
Public Bank is a relatively small player in commercial and investment banking and its overseas earnings is mainly through Public Bank Cambodia which generated a relatively modest RM342 million in PBT for 2023.
SHAREHOLDER VALUE CREATION
“If a shareholder of Public Bank bought 1,000 shares in 1967 when Public Bank was listed, and assuming that the shareholder subscribed to all rights issues and did not sell any of the shares, he would have accumulated 744,690 shares worth RM3.2 million based on Public Bank’s share price of RM4.29 as at the end of 2023. In addition, he would have received a total gross dividend of RM1.9 million whilst having only invested a capital outlay of RM235,612, including subscription for all rights issues. Total dividends received and appreciation in share value translate to a remarkable compounded annual rate of return of 17.7% for each of the 56 years that this shareholder has held the share in Public Bank since it was listed in 1967.”
Source: Public Bank Berhad 2023 Annual Report (Page 65)