Public Bank Berhad (PBBANK) Q3 2024 earnings summary

Executive summary

• Profit before tax rose 6.0% year-over-year to RM6.86 billion for 9M 2024, with net profit up 6.2% to RM5.35 billion, driven by higher net interest and non-interest income, healthy loan and deposit growth, and improved contributions from associates.

• Annualised loans and deposits grew 5.2% and 3.9% respectively, with a net return on equity of 13.2% and a stable gross impaired loans ratio of 0.62%.

• Gross loans grew 3.9% year-to-date to RM414.5 billion, and customer deposits increased 3.0% to RM425.1 billion.

• The Group maintained strong capital adequacy ratios: CET1 at 14.3%, Tier 1 at 14.3%, and total capital at 17.2%.

Financial highlights

• Net interest income increased 4.2% year-over-year to RM7.04 billion, while non-interest income grew 9.8% to RM2.08 billion.

• Operating revenue for the nine months ended 30 September 2024 was RM20.29 billion, up from RM18.87 billion year-over-year.

• Earnings per share rose 6.2% year-over-year to 27.55 sen.

• Cost-to-income ratio remained efficient at 34.9%, outperforming the industry average.

• Net interest margin improved to 2.24% in Q3 2024.

Outlook and guidance

• Strategic focus remains on synergistic growth in retail and SME banking, cost discipline, asset quality, and digital transformation.

• Emphasis on sustainability, customer experience, and prudent risk management to deliver sustainable returns.

• The Group expects continued support from Malaysia’s stable economic fundamentals, resilient banking system, and ongoing digital and sustainability initiatives.

• Focus remains on retail, SME, and green financing, with ongoing digitalisation and regional expansion, especially in Indochina.