Public Bank Berhad (PBBANK) Q4 2024 earnings summary

Executive summary

• Pre-tax profit rose 4.6% year-over-year to RM8.93 billion, with net profit up 7.5% to RM7.15 billion, driven by steady loan and deposit growth, stable net interest margin, and lower loan loss allowances, despite a one-off goodwill impairment in Hong Kong.

• Net return on equity reached 13.2% for FY2024, reflecting resilient top-line growth and strong credit risk management.

Financial highlights

• Net interest income rose 4.4% year-over-year to RM9,451.1 million; non-interest income increased 15.2% to RM2,852.6 million, with net interest and Islamic banking income up 5.1%.

• Gross loans grew 6.3% to RM424.2 billion, with domestic loans up 6.7%.

• Customer deposits increased 4.9% to RM433.3 billion, with domestic deposits up 4.8%.

• Cost-to-income ratio remained efficient at 34.5%, well below the industry average.

• Full-year dividend of 21.0 sen per share, payout ratio at 57%.

Outlook and guidance

• Focus remains on synergistic growth in retail and SME banking, digital transformation, and sustainability, with ongoing cybersecurity enhancements.

• Committed to mobilising RM100 billion in sustainable finance by 2030, with RM67 billion achieved since 2020.

• The recent acquisition of LPI Capital Bhd is expected to contribute positively to future earnings.

• The group expects continued growth, supported by Malaysia’s stable fundamentals and strong capital buffers.