KUALA LUMPUR: Public Bank Bhd posted a higher net profit of RM3.5 billion for the first half ended June 30 2025 from RM3.44 billion in the same period in 2024.
The bank's revenue was also higher at RM14.67 billion against RM13.34 billion year ago.
Public Bank saw improved net interest and non-interest income, which it said underscored a resilient performance in the first half of 2025, despite significant headwinds.
For the second quarter (Q2) opf 2025, Public Bank posted a net profit of RM1.76 billion compared to RM1.78 billion previously. This translated to an earnings per share of 9.11 sen against 9.18 sen a year ago.
The group reported quarterly revenue of RM7.35 billion, up from RM6.69 bilionl in the previous corresponding period.
Public Bank said the resilient performance was driven by top-line growth.
Its net interest and financing income grew 4.1 per cent to RM5.65 billion, while non-interest and non-financing income saw a double-digit growth of 17.5 per cent.
This was mainly spurred by investment income, foreign exchange business as well as fee and commission income.
Public Bank managing director and chief exceutive officer Tan Sri Tay Ah Lek said despite the significant headwinds, the Public Bank
Group's resilient business model and prudent management continued to enable it to ride through challenges.
The group's core businesses continued to deliver commendable performance, with return on equity standing at 12.6 per cent, while cost management remained prudent with an efficient cost-to-income ratio of 35.3 per cent."
With the good performance for the first half of 2025, Public Bank declared an interim dividend of 10.5 sen per share, amounting to RM2.04 billion.
This represents a payout ratio of 58.1 per cent of the group's net profit for the six months.
Elaborating on the results, Public Bank said its non-interest and non-financing income growth was further complemented by the newly-acquired general insurance business undertaken by LPI Capital Bhd.
As at the end of June 2025, the group's asset quality remained stable with the gross impaired loans ratio standing at 0.5 per cent and credit costs at three basis points, well below the banking industry's average.
Its loan loss coverage stood at a prudent level of 153.9 per cent, exceeding the 90.5 per cent industry average.
Public Bank managing director and chief exceutive officer Tan Sri Tay Ah Lek said despite the significant headwinds, the Public Bank
Group's resilient business model and prudent management continued to enable it to ride through challenges.
For the first half of 2025, the group's total loans grew at an annualised rate of 5.1 per cent.
The annualised domestic loans grew at a stronger rate of 6.1 per cent, which was higher than the domestic banking industry's annualised loan growth rate of 4.3 per cent.
Its domestic loan growth was mainly contributed by the key lending activities in the retail banking segment, i.e. residential property financing, hire purchase financing and commercial property financing.