Public Bank Berhad (PBBANK) Q4 2025 earnings summary

Executive summary

• Achieved profit before tax of RM9.54 billion for FY2025, up 6.8% year-over-year, with net profit rising 1.1% to RM7.22 billion, driven by both net interest and non-interest income, healthy loan and deposit growth, and lower impairment charges.

• Loans and deposits grew by 5.1% and 3.2% respectively, with domestic operations leading growth and gross impaired loans ratio stable at 0.51%.

• Segment profit growth was led by retail operations (+5.2%), general insurance (full-year consolidation of LPI Capital), and overseas operations (absence of prior year goodwill impairment).

• Maintained resilient net return on equity at 12.8% and low credit cost at 2 bps.

• Declared a full-year dividend of 22.5 sen per share, with a payout ratio of 60.5%.

Financial highlights

• Net interest/financing income increased 2.1% year-over-year to RM11.3 billion; non-interest income surged over 14%, mainly from insurance and investment-related fees.

• Cost-to-income ratio remained stable at 34.9%, well below industry average.

• Earnings per share rose 1.5% to 37.41 sen.

• Net interest margin for 2025 was 2.15%, slightly down from 2.21% in 2024.

• Total assets reached RM561.7 billion, with shareholders’ equity at RM59.9 billion.

Outlook and guidance

• Strategic focus remains on retail and SME lending, digital transformation, and sustainability, with continued prudence in risk management.

• The group expects moderate global growth in 2026 amid external risks, but Malaysia's economy is projected to remain stable, supported by domestic demand and investment.

• Targeting continued growth in sustainable finance, aiming for RM100 billion by 2030 and carbon neutrality by 2030.