Thesun 2009-01-21 Page16 Public Bank Posts Rm3

16

theSun

| WEDNESDAY JANUARY 21 2009

business Hang Seng

S&P/ASX200

TSEC

KLCI

STI

KOSPI

Nikkei

12,959.77

3,476

4,242.61

880.37

1,720.58

1,126.81

8,065.79

380.22

112.70

124.15

9.91

26.41

23.84

191.06

Public Bank posts RM3.38bil pre-tax profit for FY08 KUALA LUMPUR: Public Bank Bhd posted a pre-tax profit of RM3.38 billion for the financial year ended Dec 31, 2008, compared with RM3 billion a year earlier. Revenue rose to RM10.5 billion versus RM9.55 billion. “The strong profit performance was contributed by healthy growth in net interest and financing income and other operating income, its managing director Tan Sri Tay Ah Lek, said yesterday. With the improved results last year, the group’s net return on equity increased further to 30.4% in 2008 against 26.3% in 2007 while earnings per share rose to 76.9 sen from 63.3 sen in 2007. Net interest and Islamic banking income increased by RM564 million or 15% to RM4.29 billion last year, driven by the sustained high rate of growth in both quality loans as well as customer deposits and continued improvement in asset quality. Total loans and advances expanded by 19% or RM19.3 billion to RM120.3 billion as at end-2008, with loan market share rising to

14.9% from 14.4% in 2007, he said. Total customer deposits expanded 17% to RM162.3 billion, leading to a higher market share of core deposits of 15.2% from 13.7% at end-2007. The bank’s The strong profit risk-weighted capital ratio performance remains strong was contributed at 13.1% after deducting the by healthy growth proposed divi- in net interest and dends while the financing income amount of gross non-performing and other operating loans (NPLs) de- income.” creased by 14% to – Tan Sri Tay Ah Lek RM1.21 billion at end-2008. The NPL ratio was 0.86%, which was about one-third that of the banking industry. Public Bank said it achieved a loan growth rate of 19% in 2008, well above the banking industry’s November 2008 year-on-year growth rate of 11%, with total loans, advances and financing increasing by RM19.3 billion to RM120.3 billion. – Bernama

Insight into the Ox year pg 20

AmFIRST ups stake in Summit Subang USJ by Tim Leonard [email protected]

PETALING JAYA: Am ARA REIT Managers Sdn Bhd (Am ARA), the managers of AmFIRST Real Estate Investment Trust (AmFIRST) entered into a conditional sale and purchase agreement to acquire three floors of office space which it does not own at Menara Summit in Subang USJ. The total purchase consideration of the three floors, with a layout of 36,166 sq ft, is valued at RM11.23 million Menara Summit is an office tower block of a mixed commercial development known as The Summit Subang USJ and comprises an office tower, a hotel block and a retail podium. AmFIRST had earlier completed the acquisition of the developer’s unsold interest in the strata development on March 31 last year. Two of the three floors are being acquired from Salcon Resources Sdn Bhd while the third from Air-Conditioning Systems Design Sdn Bhd. Both acquisitions have been structured with an income guarantee from Salcon Bhd, a company listed on Bursa Malaysia, and AirConditioning Systems Design Sdn Bhd respectively. The two floors acquired from Salcon will be tenanted to the Salcon group, which is now occupying the

premises. With the acquisition, AmFIRST, through its trustee, Mayban Trustees Bhd, would own 12 of the 13 floors of offices at Menara Summit, or 144,667 sq ft out of the total office strata area of 156,723 sq ft – working out to 92% ownership of the total office space. Looking at the total combined office and retail strata space at the whole development, AmFIRST would be increasing its ownership from 67% to a strategic 70% (excluding the hotel block and car parks, which are fully owned by AmFIRST). Am ARA chief executive officer Lim Yoon Peng said the acquisition will enhance the company’s strategic control of the whole strata development at The Summit Subang USJ and facilitate the asset management planning and implementation to improve asset performance. “For a start, we will soon be commencing a repositioning exercise for the retail complex to make it a shopping-cum-entertainment destination. In addition, we are also looking at doing some renovation to upgrade the hotel guestrooms to cater to the needs of guests and remain competitive,” said Lim. “We also intend to continue leveraging on our asset management capability to ensure our assets perform to their maximum potential and deliver good earnings to our unitholders,” he said.

market summary KLCI stays south

INDICES FBMEMAS COMPOSITE INDUSTRIAL CONSUMER PROD INDUSTRIAL PROD CONSTRUCTION TRADING/SERVICES FINANCE PROPERTIES PLANTATIONS MINING FBMSHA FBM2BRD TECHNOLOGY

JANUARY 20, 2008 CHANGE 5,764.35 -63.84 880.37 -9.91 2,081.20 -3.03 285.34 +0.76 66.81 -0.62 165.38 -1.11 116.34 -1.30 6,875.58 -109.63 534.35 -2.71 4,341.60 -30.92 249.25 UNCH 6,001.17 -65.18 3,939.52 -43.38 12.86 -0.25

SHARE prices on Bursa Malaysia ended the day lower on persistent profit-taking activities in heavyweights and lower-liners, with most finance counters extending losses, dealers said. At the closing bell, the KLCI dropped 9.91 points or 1.113% to 880.37. The KLCI opened 4.46 points lower at 885.82 in the TURNOVER VALUE morning compared to Mon- 375.820mil RM439.119mil day’s closing of 890.28. The dealers said market players took in profits ahead of the Chinese New Year holiday next week and amid worries that the US financial crisis had spread to Europe. According to them, fears of the financial crisis in Europe seem to be affecting the local and regional bourses, especially after the Royal Bank of Scotland in the United Kingdom, announced massive losses. MIMB Investment Bank said the market is anticipating more negative news on the economy such as surprise unemployment data, adding that the imminent Chinese New Year holiday may add more fatigue to the current market. – Bernama