Download - Public Bank | PBeBank.com

213Chairman’s Review – Outlook for 2013Bank Negara Malaysia has announced its guideline inrespect of adoption of Basel III which will be implemented inphases, from 2013 to 2019. The transition to Basel III isexpected to further strengthen the capital and liquidityposition of Malaysian banks going forward.Expectations and OpportunitiesThe Malaysian banking sector will further develop its role asan efficient and effective financial intermediary in supportingthe country’s transformation into a high income nation. Theacceleration of projects under the ETP and its multipliereffects on the economy are expected to increase demandfor financing from the banking sector. In addition, thepositive economic outlook and accommodative monetarypolicy will continue to support loan growth. Competition fordeposits among banks is likely to intensify.Banks will continue to pursue innovative solutions in theirproducts and services to grow their market share. In view ofthe pressure on net interest margins, banks will continue toplace emphasis on growing their non-interest income. Thegrowing number of affluent customers in Malaysia with highsavings should continue to provide greater demand forwealth management products. Banks are expected toimprove the infrastructure that fosters efficient financialservices. Banks will also continue to enhance their efforts toincrease consumer awareness and user confidence in usingelectronic payments.Islamic finance in Malaysia will further expand and makesignificant progress in expanding its coverage of services. Totap the region’s growth prospects, Malaysian banks areexpected to see greater regionalisation. Malaysian banks areenvisaged to have a larger role in supporting cross bordercapital flows due to rising regional economic integration. Thebanking sector will further improve access to banking to allmembers of society to promote an inclusive financial sector.Strategies and DirectionsThe Public Bank Group will continue to focus on its longtermbusiness strategy of organic growth, focusing on retailloans, deposits and fee-based activities. In its lendingbusiness, the Group will continue to focus on homemortgages, vehicle financing and lending to small- andmedium-sized enterprises. The Group will continue to upholdits strong asset quality, underpinned by the Group’s prudentcredit culture and stringent underwriting standards. On theliability side, the Group will continue to expand its customerdeposit base to maintain an efficient funding cost and ahealthy balance sheet. Public Islamic Bank, a wholly-ownedsubsidiary of the Group, will continue to expand its corebusiness of retail-based consumer and business financing.The Group will also intensify its efforts to promote Islamicfee-based activities.To meet the demand of the growing affluent customersegment, the Public Bank Group will continue to expandinto fee- and transaction-based activities including unit trust,bancassurance and structured investment products. TheGroup will further embrace innovation in products andservices to meet the demand of more discerning andsophisticated customers. The Group is also committed togrow its overseas operations in the countries and region inwhich it already has a presence. Greater regional economicintegration means greater opportunities for the Group toexpand its overseas business.The Public Bank Group continues to see superior customerservice as an important element in the Group’s businessgrowth strategy. The Group will continue to tap on itsgrowing sales and marketing force and enhance its excellentcustomer service at branch counters and in service delivery.The Group will further develop its customer relationshipmanagement processes and utilise the results from customersegmentation analytics to improve customers’ bankingexperience and cross-selling activities. For greater customerconvenience, the Group will continue to expand its combinednetwork of Automated Teller Machines, Cheque DepositMachines, Cash Recycling Machines and Cash DepositTerminals, and provide more value-added conveniencethrough its internet banking and mobile banking services.Recognising that talent is imperative to steer the Group’sadvancement, the Group will continue to invest in humancapital development.The Public Bank Group will continue to remain guided by itstime tested practices of prudent management and goodcorporate governance. The Group’s efforts to furtherstrengthen its risk management capacity will continueunabated. The Group will also continue its efforts in capitalmanagement to support the Group’s business growthstrategies while maximising shareholders’ returns.TAN SRI DATO’ SRI DR. TEH HONG PIOWChairman6 February 2013