July 23 (Bloomberg) -- Public Bank Bhd., Malaysia’s third-biggest lender, said second-quarter profit was little changed as market competition narrowed interest margins.
Net income fell 0.2 percent to 952.7 million ringgit ($300 million), or 27.2 sen a share, in the three months ended June 30, from a restated 954.9 million ringgit, or 27.27 sen a share, a year earlier, the lender said in an exchange filing today. Revenue rose 9.3 percent to 3.47 billion ringgit.
“Competition is expected to intensify for loans and deposits and net interest margin will continue to be impacted,” Chairman Teh Hong Piow said in a statement. “The group is expected to maintain its earnings momentum and record satisfactory performance in the second half of 2012.”
Shares of Kuala Lumpur-based Public Bank were unchanged at 14.32 ringgit as of 3:34 p.m. local time. The stock has advanced 7 percent this year.
Net interest income, or revenue from borrowers after deducting interest paid to depositors, climbed 4.6 percent last quarter to 1.3 billion ringgit. Net income from Islamic banking shrank 7.1 percent to 211.2 million ringgit, the filing showed.
Other operating expenses increased 7.5 percent to 594 million ringgit, while allowances for impairment on loans rose 29 percent to 83.6 million ringgit.
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