KUALA LUMPUR (Aug 26): Public Bank Bhd (KL:PBBANK), Malaysia’s third-largest bank by assets, said on Tuesday its net profit slipped in the second quarter from a year earlier, dragged by lower non-taxable income.

Net profit for the three months ended June 30, 2025 (2QFY2025) was RM1.76 billion, a 1% decline when compared to RM1.78 billion recorded for the same period last year, Public Bank said in an exchange filing. Year-on-year, net interest income rose 5.1% while non-interest income climbed 15% during the quarter.

The bank declared a first interim dividend of 10.5 sen per share, payable on Sept 24. The entitlement date is Sept 12.

“Public Bank continues to ensure that it remains well-capitalised at all times to support its business growth, while optimising returns to its stakeholders,” the bank said, noting that its capital and liquidity position remained healthy while asset quality was resilient with prudent loan loss reserves.

The group will continue to proactively grow its business leveraging on its core strength in the retail banking segment, whilst maintaining a strong focus on environmental, social and governance (ESG) initiatives and digital transformation to drive business growth, said its managing director and chief executive officer Tan Sri Dr Tay Ah Lek. 

For the first half of FY2025, Public Bank’s net profit rose 2.05% to RM3.51 billion from RM3.44 a year earlier as net interest income grew by 4.1% year-on-year while non-interest income grew 17.5%. 

Non-interest and non-financing income growth was further complemented by the newly acquired general insurance business undertaken by LPI Capital Bhd (KL:LPI).

As at end-June, the bank’s asset quality remained stable with the gross impaired loans ratio standing at 0.5% and credit costs at three basis points, well below the banking industry’s average. 

Loan loss coverage stood at a prudent level of 153.9%, exceeding the 90.5% industry average. 

Public Bank’s common equity Tier 1 capital — a measure of a bank’s capital strength based on the highest quality of regulatory capital — stood at 14%. 

Moving forward, the bank said its outlook is weighed by uncertainties which could lead to heightened volatility in global financial markets and commodity prices. 

Investment momentum is expected to be sustained by the progress of multi-year projects in both the private and public sectors, providing buffers to better absorb external shocks, it added.

At Tuesday's noon break, Public Bank's shares were down half a sen or 1.11% at RM4.46, giving the group a market capitalisation of RM86.57 billion.