KUALA LUMPUR (Dec 4): Public Bank Bhd (KL:PBBANK) will redeem its RM500 million subordinated sukuk murabahah on Dec 18, five years earlier than its maturity date of Dec 18 in 2029.

The third-largest bank in the country by assets on Wednesday said that the subordinated notes had a coupon rate of 3.72% per annum.

“The notice of early redemption has been given to the noteholders that Public Bank will fully redeem the outstanding principal together with the accrued interest on Dec 18, 2024,” it said.

The bank previously said that the subordinated notes will be utilised for its working capital, general bank and other corporate purposes, according to its past filing.

Last Friday, Public Bank posted a 12% year-on-year increase in net profit to RM1.91 billion in the third quarter ended Sept 30, 2024 (3QFY2024), compared with RM1.7 billion a year earlier. Revenue for the quarter rose 5% to RM6.81 billion, from RM6.48 billion previously.

For 9MFY2024, Public Bank recorded a net profit of RM5.35 billion, up 6% from RM5.03 billion in the same period last year. Revenue rose 7.6% to RM20.2 billion from RM18.87 billion.

At the closing bell, shares in Public Bank closed up to a more than a month high at RM4.53, after rising two sen or 0.44% on Wednesday, giving the group a market capitalisation of RM87.9 billion.