| BREAKING NEWS | Over RM15 billion in financing support provided to micro, small and medium enterprises this year - MoF | |
KUALA LUMPUR, May 14 (Bernama) -- Public Bank Bhd’s net profit increased slightly to RM1.75 billion in the first quarter ended March 31, 2026 (1Q 2026), from RM1.74 billion in the same period last year, supported by continued expansion in its loan and deposit portfolios.
In a Bursa Malaysia filing today, the bank said its loan and deposit portfolios grew at annualised rates of 5.7 per cent and 5.3 per cent, respectively, complemented by non-interest and non-financing income, which grew by 3.7 per cent.
Revenue was RM1.32 billion compared with RM1.31 a year earlier, while its earnings per share was 9.07 sen against 9.04 sen.
Separately, the bank said in a press release that it continues to maintain sound asset quality with a low gross impaired loan ratio of 0.51 per cent.
Domestically, it said the gross impaired loan ratio was lower at 0.35 per cent, significantly better than the industry’s ratio of 1.40 per cent, the statement said.
Public Bank managing director and chief executive officer Tan Sri Tay Ah Lek said asset quality stayed resilient and the balance sheet remained solid, underpinned by strong capital and liquidity positions.
"The group sustained its leading position in the domestic banking industry, with a commendable net return on equity of 12 per cent, the most efficient cost-income ratio of 35.5 per cent,” he said in the statement.
On the domestic front, its loans grew by an annualised 6.3 per cent to RM427.7 billion as the group maintained its strong presence in key retail consumer and small and medium enterprise (SME) financing segments.
Domestic SME financing, residential property financing, and hire purchase financing achieved annualised growth of 11.2 per cent, 4.4 per cent and 8.4 per cent, respectively.
These key segments continued to command strong leading market shares of 19 per cent, 20.1 per cent, and 33.1 per cent, respectively.
On the funding side, total customer deposits grew in line with loan growth, registering an annualised 5.3 per cent growth to RM453.1 billion.
The group’s domestic customer deposits rose at an annualised growth of 5.1 per cent to RM424.4 billion, led mainly by core deposits and money market deposits.
The group posted non-interest and non-financing income of RM825.9 million for the first three months of 2026, a 3.7 per cent rise against a year ago, due to higher income from unit trust, general insurance business and bancassurance.
Public Mutual, a wholly-owned unit trust company, generated a 1Q pre-tax profit of RM216.5 million, a 4.1 per cent growth compared with a year ago, constituting 9.3 per cent of the group's pre-tax profit.
The Public Bank group’s capital position remained well-capitalised with common equity tier 1 capital ratio, tier 1 capital ratio, and total capital ratio at 13.7 per cent, 13.7 per cent, and 16.4 per cent, respectively, as at the end of March 2026.
On liquidity, the group’s deposit franchise continued to support a healthy liquidity and funding position, as reflected by the gross loan-to-fund and equity ratio of 84.2 per cent as at end-March 2026.
He added that Public Bank is in a strong position to weather challenges, including potentially uneven global economic growth, by leveraging the bank's long-standing solid fundamentals and prudent management.
"Nonetheless, as the group stays vigilant, it will remain agile and forward-looking in pursuit of synergistic business growth," Tay said.
-- BERNAMA
