Public Bank Berhad (PBBANK) investor relations material

Executive summary

• Pre-tax profit for 1H 2025 increased by 5.3% year-over-year to RM4.65 billion, with net profit up 2.1% to RM3.51 billion, driven by top-line growth, higher net interest and non-interest income, and resilient loan and deposit expansion.

• Net return on equity stood at 12.6%, with a stable gross impaired loans ratio of 0.54% and low credit cost at 3 basis points.

• Gross loans grew by RM10.7 billion (2.5%) to RM434.9 billion, and customer deposits increased by RM7.7 billion (1.8%) to RM440.9 billion.

• Dividend payout ratio reached 58.1% with a higher interim dividend of 10.5 sen per share, amounting to RM2,038.1 million.

Financial highlights

• Operating revenue for the half year was RM14,665.0 million, up from RM13,336.8 million year-over-year.

• Net interest/financing income rose 4.1% year-over-year to RM4,791.0 million, and non-interest income surged 17.5%, mainly from general insurance and higher investment and forex income.

• Net income grew 6.8% year-over-year, supported by a 5.1% annualized increase in gross loans and 3.5% in customer deposits.

• Earnings per share increased 2.5% year-over-year to 18.15 sen.

• Cost-to-income ratio increased to 35.3%.

Outlook and guidance

• Strategic focus remains on synergistic growth in retail and SME banking, digital transformation, and sustainability.

• The Group expects the Malaysian economy to remain resilient, supported by domestic demand and stable labor markets, but notes downside risks from global geopolitical tensions and trade policies.

• Emphasis on maintaining strong asset quality, cost discipline, and capital strength.

• Expansion of the general insurance segment following the acquisition of LPI Capital Bhd is expected to contribute positively to future earnings.

• The Group will continue to support home ownership, vehicle financing, SME lending, and green financing initiatives.