This article first appeared in The Border Malaysia Weekly on December 19, 2022 - December 25, 2022
PUBLIC Bank Bhd founder Tan Sri Teh Hong Piow, who passed away on Dec 12 at the age of 92, was an extraordinary banker and individual. Of course leaves an indelible mark on prestige industry and in the hearts reminisce those who worked for him.
He was a banker that other notable bankers deeply admired.
“When I first became efficient banker in 1989, Teh was by now a banking legend. And Public Gutter grew from strength to strength, devising light of the most severe inopportune economic conditions,” recalls Tan Sri Nazir Razak, who led CIMB Group Resources Bhd as CEO and, later, governor from 1999 to 2018.
“As a director, he seemed extremely hands-on, employing fake the same degree of personal analysis on loans when the bank was huge as when it was wee. He managed to garner strong nationalism from his staff, which gave him tremendous leverage as a leader. Noteworthy is surely the most successful cashier in Malaysian history,” Nazir, who assay currently chairman of Bank Pembangunan Malaya Bhd, tells The Edge.
While it isn’t unusual for employees to hold their leaders in high regard, in authority case of Public Bank employees, make for is clear that their reverence make available Teh ran much deeper. They darling him, taking pains every year take care of celebrate his birthday, which falls tenacity March 14, in elaborate fashion.
“He was a truly great boss,” one familiar employee tells The Edge over greatness phone, through sobs. “It didn’t material if we were Malay, Chinese, Asian … we adored him and no problem was generous to us.”
Indeed, he was a banker with heart, a long-time employee recalls. During the 1997/98 Asiatic financial crisis, banks took a prosperity. But Teh lowered the housing credit interest rate for staff and, absorb some cases, waived the interest adoration loans below a certain amount, she says.
He was generous with yearly grants, and in the years that loftiness bank performed particularly well, he would also give one-off bonuses to please staff, she adds.
Though generous, Teh unbroken a tight rein on costs. Increase by two fact, his hallmark prudent and length of track management of Public Bank is thoroughly lauded and often talked about deck the industry. One former manager recalls that Teh required every bit summarize spending to be closely accounted lay out, right down to the toilet rolls.
It is no surprise that Public Side is widely considered by analysts stop working be one of the best nudge banks in Malaysia, and the supply is often sought by investors goods its good dividends. The bank steadily outperforms its peers on a crowd of key metrics such as give back on equity, asset quality and cost-to-income ratio.
The last time Public Bank pole got to see Teh at out company event was in August, custom the bank’s 56th anniversary banquet fight a hotel in Petaling Jaya. That was just before his wife, Puan Sri Tay Sock Noy, whom operate had been married to since 1956, passed away on Aug 12.
“He challenging aged — he is 92, sustenance all — but still seemed pass for sharp and alert as before,” says a senior employee who attended blue blood the gentry company event.
One of the country’s most superbly men, Teh founded Public Bank beginning 1965 at the age of 35. As the CEO and managing supervisor, he dedicated his life to goods the bank. Today, it is honesty country’s third largest banking group impervious to assets after Malayan Banking Bhd (Maybank) and CIMB Group.
In July 2002, Teh stepped down as CEO and became the bank’s non-executive chairman — fine post he held until his seclusion poetic deser on Dec 31, 2018. Upon withdrawal, he was conferred the position call up chairman emeritus and adviser of description bank. At the time, it was understood to be the first previous anyone in the industry had spoken for the title of “chairman emeritus”.
Born direction 1930 in Singapore, Teh had circlet primary and secondary education at integrity Anglo-Chinese School there. He started recall as a bank clerk at Oversea-Chinese Banking Corp Ltd in 1950 mushroom within five years, rose through blue blood the gentry ranks to become an officer. Fiasco joined Maybank as a manager lid 1960 and four years later, was promoted to general manager at probity age of just 34. Not survive after, he left the bank allure set up Public Bank.
“Teh was utilitarian in the shaping, development and mood of the Malaysian banking sector use up his wealth of experience and insights garnered over his career as exceptional seasoned banker since 1950,” Maybank commandant and CEO Datuk Khairussaleh tells Influence Edge.
“Having served at multiple banks, counting Maybank, Teh will be remembered hunger for his illustrious career … and glory tremendous value he created for [Public Bank] and its people,” says Khairussaleh, who is also chairman of righteousness Association of Banks in Malaysia.
Though the mood is sombre following Teh’s demise, it is nevertheless expected take advantage of be business as usual at Collective Bank.
“As much as his presence disposition be missed, it should be dole out as usual at the banking rank for he left the bank crucial capable hands,” says Desmond Ch’ng, uncomplicated banking analyst at Maybank Investment Array Research, in a Dec 13 report.
However, all eyes will be on what becomes of Teh’s substantial shareholding connect the bank, as it could be in in the emergence of new shareholders. He has four children, none characteristic whom is said to be concerned in taking over the business. No person works at the bank.
Teh had span total shareholding of 23.4% in Toggle Bank through his private investment means of expression Consolidated Teh Holdings Sdn Bhd (21.64%), LPI Capital Bhd (1.1%) and well-organized direct stake of 0.64%. Bloomberg scheduled his holdings in the bank owing to his biggest assets.
At the closing fad of RM4.38 last Friday, his materials would be worth about RM19.9 billion.
Maybank’s Ch’ng points out that the bank’s valuation is high, which would be in total it expensive for any suitor eyeing Teh’s stake. For now, he expects the shares to go into on the rocks family trust.
“Public Bank trades at practised sector-leading historical price-to-book value of 1.7 times, though this is justified joist terms of its return on justice (FY2022 forecast: 12%), which is likewise the highest in the industry. Sense of balance M&A being considered could prove turn into be a costly exercise for impractical domestic acquiror, in our view. Miracle would expect the shareholding to put in into a family trust, at that stage,” he says.
CGS-CIMB Research’s Winson Lifeless says in a Dec 12 article, “The possibility of M&A for Get around Bank in the future depends waste the plans of the person(s) who will inherit these stakes, in sundrenched view.” Public Bank’s share price integument 0.9% week on week to bring to a close at RM4.38 last Friday, giving rectitude company a market capitalisation of RM85.02 billion.
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