Public Bank Group has started the year on a strong footing, posting a pre-tax profit of RM2.31 billion for the first quarter ended 31 March 2025, 8.5% increase from RM2.13 billion in the same quarter last year.
Net profit rose 5.6% year-on-year to RM1.75 billion, compared to RM1.65 billion recorded in Q1 2024.
The Group’s net interest and financing income rose 3.5% to RM2.80 billion, supported by a stable net interest margin. Non-interest income jumped 18.9% to RM772.1 million, bolstered by stronger contributions from investment and foreign exchange income, as well as the newly acquired general insurance business from LPI Capital Bhd.
Managing Director and CEO Tan Sri Dato’ Sri Dr. Tay Ah Lek said, despite prevailing challenges in the operating environment, the Public Bank Group’s latest financial performance reflects the resilience and strength of its fundamentals.
Prudent cost management yielded an efficient cost-to-income ratio of 35.0%, while return on equity stood at 12.4%.
Total loans grew to RM430.1 billion, representing an annualised growth rate of 5.6%. Domestically, loan growth was even stronger at 6.3%, particularly in key segments such as residential mortgages, hire purchase, and commercial property financing.
Public Bank continued to demonstrate strong asset quality, with a gross impaired loans ratio of just 0.5%, significantly below the industry average of 1.4%. Within domestic operations, the ratio was even lower at 0.4%. Its loan loss coverage stood at 159.9%, and when including regulatory reserves, this figure rose to a robust 233.4%.
The acquisition of a 44.15% stake in LPI Capital Bhd contributed RM32.6 million to the Group’s Q1 net profit. The bank sees further potential to boost non-interest income through synergies and cross-selling opportunities with LPI.
Meanwhile, Public Mutual, the Group’s wholly-owned unit trust company, recorded a pre-tax profit of RM208.0 million, making up 9.0% of the Group’s total pre-tax profit. As of end-March 2025, Public Mutual managed RM97.0 billion in net asset value across 185 unit trust funds, maintaining its market-leading 33.9% retail market share.
On global trade tensions, particularly with the United States’ recently announced reciprocal tariffs, Public Bank acknowledged the potential risks to economic growth. However, it remains optimistic about Malaysia’s outlook, supported by infrastructure projects, wage growth, and a diversified economy.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
