Public Financial : Annual Results for the Year Ended 31 December 2016

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Bermuda with limited liability)

(Stock code: 626; Website: www.publicfinancial.com.hk) ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016

The Board of Directors (the "Board") of Public Financial Holdings Limited (the "Company") is pleased to announce the consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2016 with comparative figures as follows:

CONSOLIDATED INCOME STATEMENT Year ended 31 December 2016 2015

Notes	HK$'000	HK$'000
Interest income	8	1,667,695	1,691,906
Interest expense	8	(328,863)	(356,220)
NET INTEREST INCOME	1,338,832	1,335,686
Other operating income	9	205,785	225,654
OPERATING INCOME	1,544,617	1,561,340
Operating expenses	10	(798,761)	(800,484)
Changes in fair value of investment properties	5,826	10,671
OPERATING PROFIT BEFORE IMPAIRMENT ALLOWANCES	751,682	771,527

Impairment allowances for loans and advances and

receivables 11 (255,737) (265,417)

OPERATING PROFIT AFTER IMPAIRMENT

ALLOWANCES	495,945	506,110
Share of (loss)/profit of a joint venture	(286)	199
PROFIT BEFORE TAX	495,659	506,309
Tax	12	(89,098)	(83,354)
PROFIT FOR THE YEAR	406,561	422,955
* For identification purpose only

Year ended 31 December

Notes	2016 HK$'000	2015 HK$'000
ATTRIBUTABLE TO: Owners of the Company	406,561	422,955
EARNINGS PER SHARE (HK$) Basic	14	0.370	0.385
Diluted	0.370	0.385

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December 2016 2015

HK$'000 HK$'000

PROFIT FOR THE YEAR 406,561 422,955 OTHER COMPREHENSIVE INCOME FOR THE YEAR

Other comprehensive income to be reclassified to profit or loss in subsequent periods:

Exchange loss on translating foreign operations, net of tax	(52,182)	(25,971)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	354,379	396,984
ATTRIBUTABLE TO: Owners of the Company	354,379	396,984

CONSOLIDATED STATEMENT OF FINANCIAL POSITION		31 December	31 December
2016	2015
Notes		HK$'000	HK$'000
ASSETS
Cash and short term placements		4,256,779	3,928,212
Placements with banks and financial institutions maturing
after one month but not more than twelve months		2,222,825	1,018,133
Derivative financial instruments		412	3,864
Loans and advances and receivables 15		29,053,368	29,587,136
Available-for-sale financial assets		6,804	6,804
Held-to-maturity investments 16		5,693,861	5,342,872
Investment properties		314,398	267,384
Property and equipment		128,083	108,428
Land held under finance leases		642,260	643,223
Interest in a joint venture		1,606	1,892
Deferred tax assets		28,496	25,986
Tax recoverable		10,241	-
Goodwill 17		2,774,403	2,774,403
Intangible assets		718	718
Other assets		98,281	112,007
TOTAL ASSETS		45,232,535	43,821,062
EQUITY AND LIABILITIES
LIABILITIES
Deposits and balances of banks and other financial
institutions at amortised cost		929,392	984,093
Derivative financial instruments		23,157	588
Customer deposits at amortised cost		33,721,280	33,031,821
Certificates of deposit issued at amortised cost		1,072,778	499,977
Dividends payable		142,729	142,729
Unsecured bank loans at amortised cost		1,606,143	1,642,400
Current tax payable		12,974	22,207
Deferred tax liabilities		31,719	26,433
Other liabilities		413,058	348,263
TOTAL LIABILITIES		37,953,230	36,698,511
EQUITY ATTRIBUTABLE TO OWNERS OF
THE COMPANY
Issued capital	109,792	109,792
Reserves	18	7,169,513	7,012,759
TOTAL EQUITY	7,279,305	7,122,551
TOTAL EQUITY AND LIABILITIES	45,232,535	43,821,062