KUALA LUMPUR, 26 August 2025 – Public Bank Group has reported resilient financial results for the first half of 2025, with pre-tax profit rising 5.3% year-on-year to RM4.65 billion. Net profit stood at RM3.51 billion, up 2.1% compared with the same period in 2024.
The strong performance was supported by growth across both interest and non-interest income. Net interest and financing income increased 4.1% to RM5.65 billion, while non-interest and non-financing income surged 17.5%, driven by investment income, foreign exchange business, and fee-based revenue. Contributions from its newly acquired general insurance business via LPI Capital Bhd further strengthened earnings.
Financial Highlights (First Half 2025)
- Total revenue up 10%
- Pre-tax profit: +5.3% | Net profit: +2.1%
- Loans and deposits grew at annualised rates of 5.1% and 3.5% respectively
- Net return on equity: 12.6%
- Cost-to-income ratio: 35.3%
- Gross impaired loans ratio: 0.5% (below industry average)
- Loan-to-fund and equity ratio: 84.1%
- First interim dividend: 10.5 sen per share, amounting to RM2.04 billion (58.1% payout ratio)
Loan and Deposit Growth Outpaces Industry
Public Bank continued to outperform the domestic banking industry in loan expansion. Domestic loans grew 6.1% annualised, surpassing the industry’s 4.3%, led by residential property financing (+5.3%), hire purchase financing (+13.4%), and commercial property financing (+6.0%). These segments maintained strong market shares of 20.1%, 32.9%, and 32.0% respectively.
Deposits grew at an annualised rate of 3.5%, with domestic deposits expanding by 4.1%.
Strong Asset Quality and Capital Position
Asset quality remained stable, with a gross impaired loans ratio of 0.5% and credit costs of just 3 basis points, well below industry levels. Loan loss coverage stood at a robust 153.9%, comfortably above the industry average of 90.5%.
The Group maintained strong capital buffers, with CET1 and Tier 1 capital ratios at 14.0% and a total capital ratio of 16.8%.
Diversification Through Non-Interest Income
Non-interest income climbed to RM1.61 billion, supported by investment and forex activities. LPI contributed RM146.1 million, or about 9% of the segment’s income, following Public Bank’s 44.15% stake acquisition.
Meanwhile, its unit trust arm, Public Mutual, contributed RM403.4 million pre-tax profit, making up 8.7% of Group profit. Public Mutual retained a leading 33.7% market share with net asset value of RM100.6 billion across 185 funds.
Sustainability and Strategic Priorities
Public Bank reaffirmed its ESG commitments, with solar panel installations underway across domestic branches and plans for full rollout by year-end. Since 2020, the Group has mobilised RM71.6 billion in sustainable financing, achieving 71% of its RM100 billion target by 2030.
Its one-stop sustainable financing hub, PB Sustain, launched in January 2025, continues to support clients in green transition efforts. Sectoral decarbonisation targets have been set for cement, construction, and palm oil, with real estate next in focus.
Outlook: Resilience Amid Global Uncertainty
Managing Director and CEO Tan Sri Dato’ Sri (Dr) Tay Ah Lek said the Group’s prudent management and resilient retail-focused business model will help weather external headwinds, including global trade tensions and geopolitical risks.
“The Public Bank Group’s core businesses continue to deliver commendable performance, supported by strong domestic demand. We will remain vigilant in managing evolving risks, while focusing on retail banking, ESG initiatives, and digital transformation to drive long-term growth,” he noted.
Despite global uncertainties, Malaysia’s diversified economy, resilient domestic demand, and ongoing public-private investments are expected to provide a buffer. Public Bank intends to leverage these fundamentals to sustain growth momentum into the second half of 2025.
