Public Bank Berhad (PBBANK) Q1 2025 earnings summary

Executive summary

• Profit before tax rose 8.5% year-over-year to RM2.31 billion in Q1 2025, with net profit up 5.6% to RM1.75 billion, driven by higher net interest and non-interest income, improved Islamic banking performance, and lower loan loss allowances.

• Loans grew RM5.9 billion (annualised 5.6%) to RM430.1 billion, mainly from mortgage, hire purchase, and SME financing; customer deposits increased RM3.8 billion (annualised 3.5%) to RM437.1 billion.

• Non-interest income surged 18.9% year-over-year, now comprising 22.1% of total income.

• Gross impaired loans ratio remained stable at 0.53%, below the industry average of 1.42%.

Financial highlights

• Operating revenue for the quarter was RM7,313.7 million, up from RM6,646.3 million year-over-year.

• Net interest income increased 2.7% year-over-year to RM2.38 billion, while non-interest income reached RM772.1 million, up 18.9%.

• Net income from Islamic banking business grew 8.4% year-over-year.

• Cost-to-income ratio improved to 35.0%, outperforming the industry average of 43.6%.

• Earnings per share rose 6.1% year-over-year to 9.04 sen.

Outlook and guidance

• Strategic focus remains on retail and SME lending, digital transformation, and sustainability.

• The group expects continued growth, supported by Malaysia’s positive economic outlook, stable labor market, and diversified economy.

• Emphasis on maintaining strong asset quality, prudent risk management, and cost discipline.

• The group aims to expand its general insurance segment and regional presence, especially in Indochina.