Public Bank Berhad (PBBANK) Q2 2024 earnings summary

Executive summary

• Pre-tax profit for H1 2024 rose 2.5% year-over-year to RM4.41 billion, with net profit up 3.1% to RM3.44 billion and net ROE at 12.8%.

• Profitability was driven by both interest and non-interest income, with net interest and Islamic banking income up 3.9% and non-interest/financing income up 5.8%.

• Gross loans expanded 6.1% year-over-year to RM411.0 billion, and customer deposits rose 4.5% to RM424.9 billion.

• Asset quality remained strong, with gross impaired loans at 0.64% and credit cost at 0.03%.

Financial highlights

• Operating revenue for H1 2024 was RM13.49 billion, up from RM12.39 billion year-over-year.

• Net interest income grew 3.7% year-over-year to RM4.64 billion, while non-interest income rose 5.8%.

• Earnings per share increased 3.1% to 17.70 sen.

• Cost-to-income ratio was 32.6% for H1 2024.

• Dividend per share for 1H 2024 was 10.0 sen, with a payout ratio of 56.5%.

Outlook and guidance

• The group expects continued growth, supported by Malaysia’s stable fundamentals, strong domestic demand, and ongoing investment projects.

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

• Emphasis on prudent credit risk management, maintaining strong asset quality, capital strength, and sustainable returns.