Public Bank Posts Higher Net Profit Of RM1.75 Bln In 1Q

KUALA LUMPUR, May 21 (Bernama) -- Public Bank Bhd reported a higher net profit of RM1.75 billion in the first quarter ended March 31, 2025 (1Q 2025) compared with RM1.65 billion in the same period last year.

Revenue increased to RM7.31 billion from RM6.65 billion previously, supported by healthy loans and customer deposits growth. 

In a Bursa Malaysia filing today, the bank said gross loans grew by RM5.9 billion or at an annualised rate of 5.6 per cent to RM430.1 billion in 1Q 2025 against RM424.2 billion previously, mainly contributed by growth in mortgage financing, hire purchase financing, and small and medium enterprise (SME) financing.

“Total deposits from customers in 1Q 2025 increased by RM3.8 billion or at an annualised rate of 3.5 per cent to RM437.1 billion. The group's gross impaired loans (GIL) ratio remained stable at 0.53 per cent as at March 31, 2025, lower than the average industry's GIL ratio of 1.42 per cent,” it said.

The group's liquidity position also remained stable and healthy, with gross loan-to-fund and equity ratio maintaining at 83.9 per cent at the end of 1Q 2025.

On prospects, Public Bank said the group is fully committed in its role as a financial intermediary as well as contributing towards national development and economic growth, while continuing to preserve sound corporate governance and prudent credit risk management.

“The group continues to ensure that it remains well-capitalised at all times to support its business growth, while optimising return to its stakeholders.

“The group’s healthy capital and liquidity position coupled with its resilient asset quality and prudent loan loss reserves will enable the group to generate sustainable returns,” it added. 

The bank also remains committed to strengthening and expanding its business and regional presence particularly in Indochina, capitalising on the regional economic prospects while leveraging on its strong branding and prudent management practices.

Following the acquisition of LPI Capital Bhd, the Public Bank Group aims to capitalise on strategic opportunities to expand its general insurance segment in Malaysia. The expansion is expected to contribute positively to the future earnings of the group, it said. 

In a separately statement, Public Bank stated that the Group’s net interest and financing income improved by 3.5 per cent to RM2.80 billion.

Non-interest income increased by 18.9 per cent to RM772.1 million compared with the corresponding period last year, primarily attributed to the contribution from the general insurance business of the LPI Capital.

Loan loss coverage, standing at 159.9 per cent, continued to provide an ample buffer against potential credit losses, it noted. 

Commenting on the performance, managing director and chief executive officer Tan Sri Dr Tay Ah Lek said despite prevailing challenges in the operating environment, the banking group’s latest financial performance reflects the resilience and strength of its fundamentals.

“Prudent cost management yielded an efficient cost-income ratio of 35 per cent, coupled with continued topline growth, return on equity stood at 12.4 per cent,” he said. 

“We will continue to build on our core competencies, seize emerging opportunities, and support our customers to adapt to the fast-changing landscape,” he added.

-- BERNAMA