Public Bank’s Q4 profit up 2% QoQ as NIM begins recovery

Recovery is expected to gain traction in Q1 2026, said UOB Kay Hian.

Public Bank’s earnings for Q4 2025 are in-line with expectations, with a 2% quarter-on-quarter (QoQ) rise, said UOB Kay Hian (UOBKH).

The Malaysian bank’s 2025 earnings hit 100% of full-year estimates, UOBKH said in a report published in late February 2026.

Whilst 2025 earnings are flattish, its pre-provision operating profit and profit before tax (PBT) hit 4% and 7% growth, respectively, which UOBKH described as “commendable”.

Net interest margin (NIM) started to recover in Q4, up 2 basis points (bp) QoQ, as deposits started to reprice downward.

“We expect the recovery trend to gain further traction in Q1 2026 as year-end deposit competition wanes,” UOBKH analyst Keith Wee Teck Keong said in the report.

For 2026, Public Bank expects a return on equity (ROE) of between 12% to 13%, loan growth of between 4% to 5%, and non-interest income hitting double-digit percentage growth. The bank also expects NIM to be stable or record a mid-single digital compression.