KUALA LUMPUR, Nov 7 -- Public Bank Bhd’s net profit for the third quarter (Q3) ended Sept 30, 2019, declined slightly to RM1.37 billion from RM1.4 billion recorded in the same period last year.

Revenue also eased to RM5.61 billion from RM5.62 billion.

Founder and chairman emeritus Tan Sri Dr Teh Hong Piow said the bank’s performance was affected by the reduction in the overnight policy rate (OPR) in May this year as well as macro headwinds.

“The reduction in OPR also resulted in the decline in net interest margins for the banking sector,” he said in a filing to Bursa Malaysia today.

For the nine-month period, Public Bank’s net profit fell to RM4.15 billion from RM4.23 billion, while revenue increased to RM16.78 billion from RM16.4 billion in the same period of last year.

Going forward, Teh said the bank would maintain a cautious stance amid the growing downside risks.

However, he also said this would not hinder it from pursuing continued business expansion, as pockets of opportunities remained for banks to explore the growing Malaysian and regional economies.

“These include a sustained demand for affordable housing and new growth opportunities arising from the advancement of digital banking,” he added.

According to Teh, Public Bank’s fundamental strength would continue to position it for future growth and to develop new competitive strength, centered on the bank’s strategy to continue delivering values to stakeholders.

-- BERNAMA