Annual Report 2002
www.publicbank.com.my
PUBLIC BANK – A SOLID AND SOUND INSTITUTION
Public Bank commenced business on 6 August 1966 and was listed on the Kuala Lumpur Stock Exchange (KLSE) on 6 April
1967. The Bank continues to distinguish itself as one of the strongest banking groups in Malaysia with its 36 years of unbroken
profitability record since it commenced business. As at 31 December 2002, the Public Bank Group’s shareholders’ funds stood
at RM6.83 billion, the second highest amongst banking groups in Malaysia.
As a public listed company, Public Bank continues to gain in standing among Malaysia’s public listed companies. As at 31
December 2002, the Bank’s market capitalisation stood at RM10.97 billion, ranking Public Bank second in terms of listed financial
services groups and eighth out of the 563 companies listed on the Main Board of the KLSE.
Corporate Profile
... AAA RATING
... AN INTEGRATED FINANCIAL GROUP
While Public Bank continued to maintain its profitability track
record, it achieved the highest financial rating for financial
institutions in 2002. On 7 May 2002, the Rating Agency of
Malaysia (RAM) upgraded Public Bank’s long-term ratings to
AAA from AA1, reflecting the Bank’s strong balance sheet,
favourable credit profile, consistent record of above-average
profitability and resilience to any foreseeable changes in
economic conditions.
Public Bank remains a leading integrated financial
conglomerate in Malaysia. With trust and strong support from
the public and commitment from its management and staff,
the Public Bank Group remains focused on providing all
aspects of banking and financing services which include
commercial banking, hire purchase, merchant banking, leasing
and factoring, stockbroking, sale of trust units and
management of unit trusts, and related financial services such
as nominees and trustee services, and investment holding.
... A BANK FOR THE PUBLIC
To further strengthen the Group’s performance, Public Bank
has begun to further rationalise its Group operations after its
successful acquisition and integration of the former Hock Hua
Bank in 2001. This rationalisation involves the privatisation of
Public Finance to achieve economies of scale, improve cost
efficiency and to enhance the market presence of the Group.
This rationalisation also helps the Group to achieve its
objective of being a preferred one-stop financial service
provider in Malaysia.
Conceptualised as ‘a bank for the public’ by its visionary
founder and Chairman, Y.Bhg. Tan Sri Dato’ Sri Dr. Teh Hong
Piow, the Public Bank Group has emerged as one of the
largest banking groups in Malaysia offering a complete range
of products and services delivered through multiple delivery
channels for customer convenience. To reach its wide
customer base, the Group has a domestic branch network of
384 branches comprising 216 Public Bank and 168 Public
Finance branches. This is the second largest branch network
amongst banking groups in Malaysia. This wide branch
network is complemented by a range of on-line delivery
channels such as Internet banking and telebanking.
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... MOVING CLOSER TO ITS VISION TO BE
TOP 100 IN THE WORLD
The management and staff of the Public Bank Group are fully
committed to achieve its corporate vision of being ranked among the
top 100 banks in the world. In 2002, Public Bank’s world ranking by
The Banker improved to the 173rd position, up from 216th in the
preceding year.
... COMMITMENT TO HIGH STANDARDS OF
CUSTOMER SERVICE
High standards of customer service is the hallmark of the Public Bank
Group that puts it ahead of its competitors. The bank-wide ISO
9001:2000 certification for the “Provision of Customer Service at the
Front Office” in 2001 was a reaffirmation to ensure that courtesy,
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Annual Report 2002
www.publicbank.com.my
Corporate Profile
efficiency, accuracy, empathy, and integrity of customer service
are upheld at all times throughout the Bank. Meeting
quantitative service standards such as the 2-minute Standard
Waiting Time and the 1-minute Standard Processing Time for
core transactions for greater customer convenience has become
the norm for the Group. To further enhance its customer
service standards, ISO 9001:2000 certification for “Provision
of Customer Service in Loan Delivery” has been secured for
selected branches in 2002, and this will be extended to all
branches in 2003.
... RECOGNITION FOR PRUDENT
MANAGEMENT AND PERFORMANCE
EXCELLENCE
Public Bank’s undivided commitment to prudent management
and performance excellence continues to be accorded
prestigious international and domestic recognition. In 2002,
the Bank was bestowed with the outstanding and best
commercial bank awards in Malaysia by Asiamoney,
Euromoney, FinanceAsia, The Asset and Global Finance.
Among the Far Eastern Economic Review’s REVIEW 200 Asia’s
Leading Companies, Public Bank maintained its second
position among the top Malaysian companies in the REVIEW
200 list for 2002.
As a standard bearer of good corporate governance, Public
Bank was awarded the inaugural Malaysian Business
Corporate Governance Award, in addition to the prestigious
KLSE Corporate Excellence Award that Public Bank won for
three consecutive years, from 2000 to 2002. Public Bank was
also accorded the National Annual Corporate Reports Awards
(NACRA) Most Outstanding Annual Report Award and the
Industry Excellence Award for the Finance Industry Category
under the Main Board Category.
... EFFECTIVE COMMUNICATIONS WITH
INVESTORS
To further enhance corporate transparency and good corporate
governance practices, Public Bank has an established Investor
Relations function headed by its Managing Director and
assisted by a group of senior management staff. This group
of senior management staff provides the main communication
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channels with investors, including meetings with equity
analysts, fund managers and investors, teleconferences, and
participation at international and national investor forums. The
publication of a comprehensive, reader friendly, and
informative annual report each year is another key form of
communication with investors. Public Bank also maintains an
informative web site and makes timely releases and
announcements to the KLSE and the media as and when
necessary.
... THE QUEST TO REALISE ITS VISION
AND MISSION
Public Bank’s shared goals are to realise its Corporate Vision
‘To Be Ranked Among The Top 100 Banks In The World’ and
to maintain its Corporate Mission ‘To Sustain The Position Of
Being The Most Efficient, Profitable and Respected Financial
Institution In Malaysia’. To achieve these shared goals, the
Public Bank Group continues to uphold its corporate philosophy
in caring for its customers, employees, the community it
serves, and shareholders through relentless team spirit and
loyalty in line with the Public Bank Group’s motto ‘Excellence
is Our Commitment’.
These shared corporate goals are continually reinforced upon
the Group’s 12,537 employees through induction programmes,
training courses, consistent management practices, Chairman’s
speeches and messages, incentives, and the implementation of
caring human resource management policies that provide
opportunities for career advancement and promote staff
productivity, well-being and high morale.
Together with strong support from all stakeholders, including
our 86,624 shareholders, the Public Bank Group’s proactive
mindsets of ‘we can’ and ‘we will’ will continue to prevail.
Customer Care
SUSTAINING CUSTOMER SERVICE EXCELLENCE ...
Providing and sustaining excellent customer service remains a key business focus in a
highly competitive environment. Customers’ needs and expectations of the Public Bank
Group's wide spectrum of customers are becoming increasingly complex. In such a
competitive and ever changing environment, the Public Bank Group is even more
committed towards sustaining its customer service excellence.
Corporate Mission
To Sustain The Position Of
Being The Most Efficient,
Profitable And Respected
Financial Institution In
Malaysia.
Corporate Vision
To Be Ranked Among
The Top 100 Banks In
The World.
DISTINGUISHED CUSTOMER SERVICE FROM THE FRONT ...
Over 90% of Public Bank’s branches are staffed with specially-trained Customer Service
Representatives (CSRs) at the front office.
The primary objective of this dedicated service is to satisfy the varied needs of
customers, provide timely response to inquiries, quick resolution of issues and more
efficient counter service for a higher level of customer satisfaction and confidence. This
is evident from the increase in number of accounts opened and increasing transaction
volumes.
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Annual Report 2002
www.publicbank.com.my
Customer Care
“
“
The standard waiting time for customers to be
served has been reduced from 3 to 2 minutes with
a majority of branches consistently surpassing
80% compliance.
The standard waiting time for customers to be served has
been reduced from 3 to 2 minutes with a majority of branches
consistently surpassing 80% compliance. Special Care
Counters for senior citizens, expectant mothers and the
disabled, where priority services are accorded, has been well
received and appreciated.
WE LISTEN, WE CARE ...
The Consumer Financing Desk, which is conveniently located
in the banking hall, provides customers with ready assistance
for enquiries and submission of consumer loan applications.
Customers assume a pivotal role in guiding us to better meet
their needs. Public Bank Group’s customer-focused strategy is
best illustrated by the constant drive to speedily handle,
monitor and resolve customers’ concerns. Feedback is solicited
from customers using all the channels of communication, to
procure opinions and suggestions to drive development of
improvement initiatives. The Customer Communication and
Feedback System encourages feedback via the Customer
Satisfaction Survey Form.
CONDUCIVE CUSTOMER
SERVICE ENVIRONMENT ...
VALUE-ADDED, ONE-STOP
CUSTOMER SERVICE ...
Reiterating our commitment to providing a more conducive
and comfortable customer service environment, there were
significant investment in renovations or relocations to more
spacious premises covering 85 branches in 2002. With better
ambience, improved banking halls and redesigned counter
layout, customers can look forward to greater comfort in a
Public Bank branch.
We continued to increase the list of payee corporations under
the Public Bank Group’s Cash Management Services, in order
to provide further convenience for customers to pay their bills.
Customers are also provided with special meeting areas to
discuss their loan applications in complete privacy to tailor
loans for their specific needs.
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Customers now have a range of convenient payments options
including over-the-counter, ATM, telebanking and Internet
banking, when making payments to a multitude of payee
corporations.
Customers are also enjoying the convenience of access to all
the Group’s branches via the Group’s InterServe Banking
Service which has been made available since 1997. This
service allows customers to conduct their banking or financing
transactions at any preferred Public Bank or Public Finance
branch anywhere throughout the country.
In providing more convenience to customers, Public Bank
Group products are now offered by a Public Bank or Public
Finance branch for ease of accessibility by customers. Sales
and Marketing Officers (SMOs) and CSRs will assist
customers in the selection of the products and services which
will best fulfill their specific needs.
Regular users of Public Bank Group’s PB Telebanking
Services would be pleased to note that the Group have since
1 May 2002 implemented 5 new Interactive Voice Response
Systems in various states, enabling customers to access
telebanking services at a lower cost.
Plans are underway to introduce more technologically oriented
delivery channels such as Mobile Banking and Kiosk
Banking. With the growing number of delivery channels, the
Public Bank Group will be embarking on integrated channel
management strategies to leverage on all the available delivery
channels with the aim to further improve customer service
levels and cost efficiency.
Board Executive Committee
2
Customer Service Working Group
Feedback for improvement/development of new customer service strategies
PBeBank.com has also forged ahead with continuous
evaluation of preferred e-banking services and extension of the
types of transaction available. In response to the increasingly
sophisticated requirements of customers, new valued-added
and user-friendly functionalities were introduced to facilitate an
even wider array of transactions which can be used efficiently,
conveniently and securely.
1
Drives
Strategies
3
Systems
People
4
5
6
Service Delivery
Quality Assurance
7
Nurturing that all-important
trust between bank and customers
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Annual Report 2002
www.publicbank.com.my
Customer Care
QUALITY ASSURANCE THROUGH ISO CERTIFICATION ...
The Public Bank Group’s success in the provision of customer service in the Group’s banking halls was recognised with the
bank-wide ISO certification of the “Provision of Customer Service Delivery at the Front Office” and this bank-wide ISO certification
gained further recognition as a ‘First’ with an entry in the Malaysia Book of Records.
Following from this initial success, Public Bank instituted a service quality assurance system in the provision of customer service
in loan delivery. The activities encompassed under this second major ISO initiative encompass loan and credit cards enquiries,
feedback, application, processing, approval and disbursement.
With the implementation of this service quality assurance system, the Bank achieved another success in the certification by Sirim
QAS Sdn. Bhd. (SIRIM) based on the ISO 9001:2000 standards of the Quality Management System for Loan Delivery.
On 24 December 2002, SIRIM awarded the ISO certification for the “Provision of Customer Service in Loan Delivery” to three
branches of Public Bank i.e. KL City Main Office, Jalan Raja Laut and Klang. SIRIM also awarded the ISO certification for
management of Quality Management System for “Provision of Customer Service in Loan Delivery” to 4 core Head Office business
units i.e. Retail Banking for retail loans approval, Corporate Banking & Trade Finance for corporate loans approval, PB Cards
Services for credit cards issuance and Securities Documentation Centre for loan disbursement. The Bank will seek ISO 9001:2000
certification for the “Provision of Customer Service in Loan Delivery” for all branches in 2003.
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CONTINUOUS DEVELOPMENT OF QUALITY SERVICE ...
In 2002, Public Bank received a special appreciation for the Prime Minister Quality Award (Private Sector) 2002, an annual
awards programme to promote quality awareness and the adoption of quality values among organisations in the private sector.
The awards programme promotes overall delivery of quality in all aspects of the business and operations of corporations. For a
major financial services provider like the Public Bank Group, delivery of excellent quality customer service is a key component
of its quality management process.
One of the steps taken by the Public Bank Group in its pursuit of continuous improvement in the management of quality is
learning from other corporations, mainly in the manufacturing sector which have been recognised for their superior management
and delivery of quality in winning the Prime Minister Quality Award (Private Sector) in previous years. This is achieved through
visits to such corporations and studying and understanding their quality management systems and quality processes that help
these corporations deliver superior quality.
Substantial investment in human resource development has always been the core of our corporate philosophy. Staff training
played an integral part in the successful implementation and ISO certification of the “Provision of Customer Service in Loan
Delivery” and the various Customer Care Campaigns. Staff were trained both on-the-job and in classrooms, with their progress
closely monitored.
Excellent customer service is of paramount importance in the drive towards becoming a world-class bank. The investment of
large amounts of resources each year by the Public Bank Group bears testimony to the Group’s commitment to continuously
provide consistently high quality service. Each endeavour in the pursuit of continuous service improvement is a stepping stone
towards the ultimate objective of achieving world class service quality.
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