Public Bank’s net profit up 5.6% to $413.6b in Q1

Return on equity is 12.4%.

Public Bank recorded a net profit of about $413.6b (MYR1.74t) in Q1 2025, 5.6% higher than a year earlier, its latest financial results showed.

Growth was reportedly supported by a resilient net interest income, strong non-interest income growth, and lower loan loss provision, according to UOB Kay Hian.

Net profit is lower by 3% compared to Q4 2024 due to softer income and higher operating expenses.

Overall profitability is strong, with a 12.4% return on equity (ROE), said UOBKH analyst Keith Wee Teck Keong.

Non-interest income surged 18.9% due to higher contributions from stockbroking, forex income, trading, and insurance income.

Net interest income rose 6.1% in Q1 compared to the same quarter in 2024. However, it is 1.2% lower than in Q4 2024 due to a softer net interest margin (NIM).

NIM fell to 2.19% in Q1 2025 from 2.21% in Q4 2024 on the back of ongoing yield and wholesale deposit funding cost pressures. Public Bank expects NIM to compress by 5 basis points (bp).

Loan growth ins 5.6% in Q1 2025, in line with the Public Bank management’s full-year target of 5%-6% growth.

Wee expects Public Bank’s full-year loan growth to be 5.5%, lower than UOBKH’s earlier estimates of a 6% loan growth, reflecting the downgrade in Malaysia's GDP forecast.

(US$1 = MYR 4.21; as of 26 May 2025, Google)