KUALA LUMPUR (May 21): Public Bank Bhd (KL:PBBANK), Malaysia’s third-largest bank by assets, reported that its net profit rose 6% in the first quarter from a year earlier, as both interest and non-interest income expanded.
Net profit for the first three months ended March 31, 2025 (1QFY2025) was RM1.75 billion, or 9.04 sen per share, according to Wednesday's exchange filing. Year-on-year, net interest income climbed 3.6% while non-interest income surged 19% partly due to newly-acquired insurance business.
The results were also boosted by lower provisions and continued loan growth, Public Bank said.
The improved performance, however, was partially offset by higher operating expenses, mainly due to increased staff costs.
No dividend was declared for the quarter. The company usually announces dividends in February and August following second- and fourth-quarter results.
“As the Public Bank group continues to navigate an evolving global and domestic landscape, the group remains steadfast in fostering long-term resilience and sustainable growth,” said managing director Tan Sri Tay Ah Lek in a statement.
Tay emphasised that the bank will remain committed to strengthening its core competencies, seizing emerging opportunities, and supporting customers as they adapt to a fast-changing environment.
In 1QFY2025, the bank recorded a net write-back of RM5.74 million in impairment allowances for loans, advances, and financing.
Public Bank’s gross impaired loans ratio — debts considered unrecoverable as a percentage of total loans — stood at 0.5% at the end of March.
The loan loss coverage ratio was 159.9%, exceeding the 91.2% industry’s average. Including regulatory reserves, the loan loss coverage ratio stood at a higher rate of 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%.
The bank's total loan portfolio expanded at an annualised rate of 5.6% to RM430.1 billion as at end of March, with domestic loans rising 6.3% annually to RM403.9 billion.
Looking ahead, Public Bank cautioned that downside risks remain, including weaker-than-expected global demand and ongoing geopolitical tensions.
“The treasury operations will remain vigilant in its business approach, and will maintain a prudent risk profile, while further strengthening its risk management capabilities to weather ongoing market risks,” the bank added.
At Wednesday's midday break, shares in Public Bank were down seven sen or 1.6% at RM4.45, giving the group a market capitalisation of RM86.4 billion. Year to date, the stock has declined by over 2%.