KUALA LUMPUR (Feb 25): Public Bank Bhd (KL:PBBANK) said on Wednesday its net profit grew about 4% in the recently ended quarter from a year earlier thanks to higher income and lower provisions.
Net profit at the third-largest bank in Malaysia by assets was RM1.88 billion for the three months ended Dec 31, 2025 (4QFY2025), according to an exchange filing. During the same quarter last year, Public Bank booked a one-off goodwill impairment of RM473.8 million for its Hong Kong operations.
A dividend of 12 sen per share was declared and payable on March 26.
“Amid a dynamic business environment, the group remained focused on its core financing and deposit businesses, while enhancing its comprehensive range of wealth management solutions to meet evolving customer demand,” said chief executive officer Tan Sri Tay Ah Lek.
For the full FY2025, its net profit grew by about 1% to RM7.22 billion, another new high. Net interest income rose 2% on loan and financing expansion, while non-interest income rose 15% thanks to the newly acquired general insurance business, higher investment and unit trust-related fee income.
The cost-to-income ratio was 34.9%, significantly lower than the banking industry’s 45.2%.
The company’s total loans portfolio widened 5.1%, while customer deposits were up 3.2%. Net interest margin, which measures profitability from interest charged on loans after deducting returns paid to depositors, shrank six basis points to average 2.15% in 2025.
In terms of asset quality, the gross impaired loans ratio — the proportion of bad debts as a percentage of total loans — was stable at 0.5%.
The total dividend for 2025 was 22.5 sen, a total payout of RM4.37 billion or 60.5% of the net profit for the year. The bank’s common equity Tier 1 capital, a measure of a bank’s capital strength based on the highest quality of regulatory capital, was 13.89% at the end of 2025, post-dividend.
Shares of Public Bank rose one sen or 0.2% to RM5.10 at Wednesday’s noon break, valuing it at RM98.99 billion ahead of the results announcement.