KUALA LUMPUR (Nov 6): Public Bank Bhd (KL:PBBANK) saw its net profit drop 3.8% year-on-year in the third quarter ended Sept 30, 2026 (3QFY2026) on higher loans or financing impairment allowances.

Net profit of the country’s third-largest bank by total assets dropped to RM1.77 billion in 3QFY2026 from RM1.84 billion in the same quarter a year earlier, while revenue rose 4.4% to RM7.74 billion from RM7.42 billion, a bourse filing showed.

Earnings per share stood at 9.13 sen versus 9.54 sen a year ago.

Public Bank mainly attributed the drop in earnings to a RM116.4 million rise in loans/financing impairment allowance arising from the normalisation of credit charges.

A RM90.8 million decline in investment income and RM47 million increase in other operating expenses also weighed on earnings. 

No dividends were declared during the quarter.

Net interest income, meanwhile, increased 2.9% to RM2.44 billion during the three-month period from RM2.37 billion a year ago.

For the nine months ended Sept 30, 2026 (9MFY2026), net profit was largely flat at RM5.35 billion, while revenue was RM22.67 billion compared with RM22.08 billion in the same period a year earlier.

Total loans and deposits posted annualised growth rates of 6.2% and 4.1% for 9MFY2026. Asset quality remained sound with a gross impaired loans ratio of 0.55% as at end-September. The gross loans to funds and equity ratio stood at 84.7%.

Looking ahead, Public Bank said growth of the global economy is expected to remain modest and uneven across countries, adding that downside risks remain, stemming from the conflict in the Middle East, commodity price volatility, trade fragmentation and tighter global financial conditions

On the domestic front, it noted, the Malaysian economy remains resilient, underpinned by sustained domestic demand and strong export performance mainly supported by strong demand for electrical and electronic products as well as information and communication technology services.

“With ongoing external headwinds, such as higher global inflationary pressure and financial market volatility continuing to pose challenges to banking business growth, Public Bank will remain highly vigilant to risks as it proactively grows its business, said Tan Sri Tay Ah Lek, the managing director and CEO of Public Bank.

“Supported by its solid fundamentals and prudent business strategies, the group will remain well positioned to navigate through challenges and capture opportunities in the growing domestic economy,” he added.

At Friday's noon break, shares of Public Bank stood seven sen or 1.41% lower at RM4.89, valuing the group at RM94.92 billion.