KUALA LUMPUR (Feb 26): Public Bank Bhd (KL:PBBANK) reported an 11.40% year-on-year (y-o-y) rise in net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024), supported by higher net interest income, strong Islamic banking contributions, and improved fee-based income.

The bank posted a net profit of RM1.80 billion, up from RM1.62 billion in 4QFY2023. Revenue increased 7.81% y-o-y to RM7.06 billion, compared with RM6.55 billion previously.

Net interest income edged up 4.8% y-o-y to RM2.41 billion from RM2.3 billion, on improved net interest margin and healthy loan growth. Islamic banking net income grew 22.6% to RM439.22 million versus RM358.32 million.

The group said non-interest income rose 32% or RM192.4 million y-o-y on higher overall net fee and commission income, foreign exchange and investment income.

Earnings were partially offset by higher impairment allowance on loans and other assets of RM335.3 million, which was mainly due to a one-off impairment on goodwill of RM473.8 million for the group’s Hong Kong operations.

Public Bank's gross impaired loans ratio — debts considered unrecoverable as a percentage of total loans — stood at 0.52% at end-December 2024.

Loan loss coverage ratio was 166.2%, higher than the industry’s average of 91.4%. Including regulatory reserves, the provision ratio would be higher at 237.7%.

Public Bank declared a second interim dividend of 11 sen per share, bringing its total dividends for the financial year ended Dec 31, 2024 (FY2024) to 21 sen per share.

For FY2024, Public Bank’s net profit rose 7.5% to RM7.15 billion from RM6.65 billion in FY2023, as revenue increased 7% to RM27.21 billion versus RM25.42 billion previously.

“Public Bank’s FY2024 performance was underpinned by sustained growth in both loans and deposits businesses, and further supported by stronger growth in non-interest income, Public Bank managing director and chief executive officer Tan Sri Tay Ah Lek said in a statement.  

“Coupled with the group’s prudent cost management, as evidenced by its efficient cost-to-income ratio of 34.5%, the group achieved a commendable net return on equity of 13.2%,” he added.

Looking to FY2025, Public Bank said Malaysia's economic growth is expected to be backed by firm fundamentals, stable labour market conditions, and its diversified economic structure.

The group said downside risks mainly stem from weaker-than-expected external demand and commodity production. It noted the Malaysian banking system remains resilient, underpinned by ample liquidity and healthy capital buffers.

“Moving into Public Bank’s 59th year of operations in 2025, the group remains committed as a bank for the people. The group will continue to position itself for sustainable growth in the years to come,” Tay added.

At the noon break, shares in Public Bank were six sen or 1.35% higher at RM4.52, valuing the lender at RM87.74 billion.