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Public Bank Berhad - the Strategic Management

Autor:   •  February 22, 2019  •  21,099 Words (85 Pages)  •  116 Views

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1.0 Introduction

First and foremost, we have to know the meaning of the financial industry. Financial industry provides financial services in the financial market. We also can define the financial service industry is the companies that operate businesses of managing the money. On the other hand, financial service industry able to help people manage the financial problems to be a well-organized manner. So, it can eliminate the worries of the people about the financial problem. There are variety types of the financial services provided by the industry which are banking, stock market, debt or treasury instruments, insurance, mutual fund, wealth management, audit firms and tax consultants.

In additional, financial services industry also can called as commercial bank. The functions of the commercial bank are including the issuance of the debit and credit cards, lending money to the people, safekeeping the deposits and others. Also, commercial bank provides the financial services such as advices and guides the companies in merges and acquisitions, wealth management, provide tax advices, facilitate the process of buying and selling of the stocks and bonds and others. Commercial bank also provides the financial services such as insurance agency services trust, estate services, trust services and financial intermediation services in the distribution of the financial products.

Moreover, the occurrence of the fast pace of the technology change aspect on the financial services industry has provides the needs for a new generation solution that able to help in operating the financial services more reliability. There are some challenges encounter by the financial services industry such as encourage customers always keep pace with the advanced technology in the financial market, reduce the cost and risks and also increase the efficiency in providing the financial services to the customers.

Public Bank Berhad is chosen as our assignment topic. Public Bank Berhad is a financial institution or commercial bank that provides financial services to the customers in the financial market. Public Bank Berhad is one of the largest bank in Malaysia with the shareholder’s funds, second largest with the market capitalization and the third largest with the total assets among the financial companies. Public Bank Berhad provides many types of products and services to the customers which are personal banking, investment banking, commercial banking, Islamic banking, insurance services, nominee services, share broking trustee services, management and sales of the unit trust fund and others. Also, the details of the information of Public Bank Berhad such as company history, company background, logo, mission, philosophy, board of director in the company, the list of company subsidiaries and major competitors will be shown in the company profile.

2.0 Company Profile

2.1 Company History

On 6 August 1966, Public Bank Berhad established by its founder and chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow. They first opened its business in Kuala Lumpur with 62 pioneer staffs. On 15 September 1966, they had started to expand network with opening branches at Malacca and on 7 January 1967, they open branches at Ipoh. Today, there are 257 branches of Public Bank Berhad with the domestic network. In 1987, Public Bank completed the acquisition of PB Securities Sdn. Bhd (known as GP Securities Sdn. Bhd), so that Public Bank Berhad could enter into the stockbroking businesses. In 1990, they completed the acquisition of Public Financial Limited (known as JCG Financial Company, limited) in Hong Kong. Public Bank established a wholly-owned off-shore bank subsidiary, Public Bank (L) Ltd, in the Federal Territory of Labuan in the same year. They also get the 1st RM100 million annual per-tax profits with the RM128 million per-tax profits in that year.

In 18 May 1992, Public Bank joint venture with bank for the purpose of investment and development of the Vietnam commenced business in Hanoi, Vietnam. In 25 May 1992, Public Bank established Cambodian Pubic Bank, that presently a wholly-owned subsidiary in Cambodia and open branches in Vientiane, Laos and Colombo, Sri Lanka. In 1993, Public Bank setting up the Public Bank’s Islamic Banking Unit and provides the Islam Banking service with the launch of “Skim Perbankan Tanpa Faedah”. On 26 May 1993, Public Bank Berhad completed the acquisition of 55% interest in Public Manual Berhad (known as Kuala Lumpur Mutual Fund Berhad). In 1996, Public Bank Berhad moved to the Menara Public Bank that present landmark Head Office building in the heart of the Kuala Lumpur’s central business district.

On 25 October 2000, Public Bank Berhad completed the acquisition of Public Merchant Bank Berhad (known as Sime Merchant Bank Berhad) and expands the Group’s business into the merchant banking. On 31 March 2001, Public Bank Berhad completed the acquisition of Hock Hua Bank Berhad. In 2003, Public Bank Berhad started buying its own shares. Also, in the same year, Public Bank Berhad completed the privatization of Public Finance Berhad. Then, paid-up capital of Public Bank Berhad had exceeded RM3 billion in that year. On 4 September 2004, Public Bank Berhad had completed the merger of the financial company business of Public Finance Berhad with the commercial banking business of Public Bank Berhad.

In 2006, Public Bank Berhad is the first bank in Malaysia that issue innovative hybrid Tier-1 capital securities in both of the international market with US Dollars of USD200 million and in the domestic market with the Ringgit Malaysia of RM1.2 billion. Moreover, Public Investment Bank Berhad as a wholly-owned subsidiary was established upon completion of the merger of the merchant banking business of the Public Merchant Bank Berhad with the stockbroking business of PB Securities Sdn. Bhd. In 2007, Public Bank Berhad entered into the exclusive regional strategic alliance agreement with ING Asia /Pacific Limited for the joint development of bancassurance business, Takaful business and others services between Public Bank and ING in the Asia Pacific region for 10 years. Also, Public Bank Berhad completed establishment of Campu Lonpac Insurance Plc, with 55% subsidiary of the Public Bank Berhad to provide the general insurance business in Cambodia in the same year.

On 1 November 2008, Public Bank Berhad completed to transfer the Islamic banking business of Public Bank to Public Islamic Bank Berhad. Public Bank became the largest banking group in Malaysia with the market capitalization and is the second largest listed company on Bursa Malaysia Securities Berhad with a market capitalization of RM36.03 billion. In 2010,

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