KUALA LUMPUR (Nov 29): Public Bank Bhd (KL:PBBANK), Malaysia’s third-largest bank by assets, said on Friday that its net profit rose 12% in the third quarter from a year earlier, thanks to operating income growth.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) was RM1.91 billion or 9.85 sen per share, Public Bank said in an exchange filing. Year-on-year, net interest income rose 5% and income from Islamic banking was up 6.5%, while non-interest income such as fees and commissions climbed 18%.

"Tapping into improved economic prospects, Public Bank continues to see opportunities for business banking growth," group managing director Tan Sri Tay Ah Lek said in a statement. However, Tay stressed that the bank would remain prudent and focus on strengthening its fundamental resilience.

In 3QFY2024, the company has written back only RM20.45 million in allowances for impairment on loans, advances, and financing.

Public Bank’s gross impaired loans ratio — debts considered unrecoverable as a percentage of total loans — stood at 0.6% at the end of September.

Loan loss coverage ratio was 153.6%, higher than the banking industry’s average of 90.8%. Including regulatory reserves, the provision ratio would be higher at 202.2%.

Meanwhile, the bank’s common equity tier 1 capital ratio — a measure of a bank’s capital strength based on the highest quality of regulatory capital — came in at 14.3%.

For the nine months ended Sept 30, 2024, Public Bank recorded a net profit of RM5.35 billion, or 27.55 sen per share, up 6% from RM5.03 billion, or 25.93 sen per share, in the same period last year. Revenue rose 7.6% to RM20.20 billion from RM18.87 billion a year earlier.

Total loan portfolio expanded at an annualised rate of 5.2% to RM414.5 billion with domestic loans rising 6.2% annually to RM390.1 billion.

Public Bank, however, cautioned about downside risks, including weaker-than-expected global demand and geopolitical conflicts.

"The treasury operations will remain vigilant in its business approach, maintaining a prudent risk profile while further strengthening its risk management capabilities to navigate ongoing market risks," Public Bank added.

At the noon break, shares in Public Bank were four sen or 0.9% higher at RM4.45, valuing it at RM86.38 billion.