LKF Partners

PUBLIC BANK BERHAD (PBBANK 1295)

SNAPSHOT

Public Bank is the third largest company on Bursa Malaysia in terms of market value and total assets. Founded in 1966 by the late Tan Sri Dato Sri Dr Teh Hong Piow, its foundation is deeply rooted in the vision of serving the banking needs of the people, hence its tag line “Bank For The People”. With total assets of RM543 billion as at 31/12/24, Public Bank ranks after Maybank and CIMB Group each with RM1,075 billion and RM755 billion respectively in total assets.
YE 31-Dec 2020 2021 2022 2023 2024
Profit Before Tax (RM mil) 6,285 7,367 8,831 8,539 8,932
Net Profit After Tax (RM mil) 4,872 5,657 6,119 6,649 7,147
EPS (RM) 0.251 0.2914 0.3153 0.3426 0.3684
DPS (RM) 0.13 0.152 0.17 0.19 0.21
Net Loans (RM mil) 342,803 354,053 372,583 394,750 420,472
Customer Deposits (RM mil) 365,871 380,394 394,718 412,897 433,264
Shareholders Funds (RM mil) 47,248 48,163 50,179 54,674 57,335
Net Assets / Total Assets (%) 10.7% 10.7% 10.4% 11.0% 11.0%
NTA per share (RM) 11.55 2.35 2.45 2.68 2.81
No of Shares (millions) 3,882.1 19,411 19,411 19,411 19,411
Share Price – Close (RM) 20.60 4.16 4.32 4.29 4.54
Financial Ratios (%)
Return on Av Equity 10.7% 11.9% 12.4% 12.7% 12.8%
Cost to Income Ratio 34.6% 31.6% 31.5% 33.7% 34.5%
Loan to Deposit Ratio 94.5% 94.1% 95.5% 96.6% 97.9%
Impaired Loans 0.8% 1.1% 1.1% 1.1% 0.9%
Net Interest / Total Interest Income 50.6% 61.7% 61.4% 50.2% 50.1%
Interest Income / Av Net Loans 4.23% 3.87% 4.11% 4.70% 4.63%

SHARE TRADING SUMMARY CY2025

Share Price - High RM4.70
Share Price - Low RM4.03
Share Price - Close @ 31/12/25 RM4.54
Average Daily Volume 16,932,838 shares
Volume - High 67,040,797 shares
Volume - Low 3,001,900 shares
Total Annual Volume 4,131,612,492 shares
Annual Turnover
(% of Share Capital)
21.3%

TOP SHAREHOLDERS

As at 28 February 2025 Direct Deemed
Estate of the late Tan Sri Teh HP 0.64% 21.64%
Consolidated Teh Holdings Sdn Bhd 21.64% -
Employees Provident Fund Board 15.12% -
Kumpulan Wang Persaraan (Diperbadankan) 4.07% -
Total 41.47%

KEY STRENGTHS

Public Bank is a market leader in retail banking in Malaysia. For the year ending 31/12/24, Retail Banking Operations generated RM4.4 billion in Profit Before Tax (PBT), which is surpassed only by Maybank’s Community Financial Services segment which generated RM6.2 billion PBT for the same period, while ahead of CIMB Group’s Consumer Banking segment at RM2.8 billion PBT. Through its 100% owned subsidiary Public Mutual Berhad, Public Bank is Malaysia’s market leader in Funds Management with more than RM100 billion in Assets Under Management, generating RM798 million PBT for the group.

Public Bank is a relatively small player in commercial and investment banking and its overseas earnings is mainly through Public Bank Cambodia which generated a relatively modest RM342 million in PBT for 2023.

“If a shareholder of Public Bank bought 1,000 shares in 1967 when Public Bank was listed, and assuming that the shareholder subscribed to all rights issues and did not sell any of the shares, he would have accumulated 744,690 shares worth RM3.2 million based on Public Bank’s share price of RM4.29 as at the end of 2023. In addition, he would have received a total gross dividend of RM1.9 million whilst having only invested a capital outlay of RM235,612, including subscription for all rights issues. Total dividends received and appreciation in share value translate to a remarkable compounded annual rate of return of 17.7% for each of the 56 years that this shareholder has held the share in Public Bank since it was listed in 1967.”

Source: Public Bank Berhad 2023 Annual Report (Page 65)

FY2024 SEGMENT EARNINGS (RM mil)

Hire Purchase 1,048
Retail Operations 4,446
Corporate Lending 843
Treasury & Capital Markets 290
Investment Banking 93
Funds Management 860
Others 33
Head Office & Funding 1,209
Hong Kong (594)
Cambodia 374
Other Countries 89
Associates 241
Profit Before Tax (FY2024) 8,932

LOAN SEGMENTATION

FINANCIALS

(RM '000)
Year Ending
2023
31-Dec
2024
31-Dec
Revenue 25,415,010 27,205,162
Interest Income 18,040,197 18,871,101
Interest Expense (8,984,905) (9,419,995)
Net Interest 9,055,292 9,451,106
Islamic Banking Income 1,561,548 1,707,000
Insurance Service Result 0 35,434
Net Finance Expense from Insurance Contracts 0 (6,246)
Other Operating Income 3,495,684 4,037,717
Other Operating Expenses (5,434,725) (6,042,469)
Impairment on Loans, Advances and Financing (156,689) (565)
Impairment on Other Assets (1,278) (491,511)
Share of Results of Associates & JV 18,956 241,163
Profit Before Tax from Continuing Operations 8,538,788 8,931,629
Tax Expense (1,883,775) (1,912,565)
PAT from Continuing Operations 6,655,013 7,019,064
Profit After Tax 6,655,013 7,019,064
Non-Controlling Interests (5,699) 127,967
Net Profit After Tax 6,649,314 7,147,031
EPS Basic / Diluted (sen) 34.26 36.84

(RM '000)
Year Ending
2023
31-Dec
2024
31-Dec
Net Loans 394,749,979 420,471,698
Cash 11,127,417 15,468,967
Deposits with FI 414,811 568,069
Fin Assets (FVPL) 2,637,648 4,001,101
Fin Assets (FVCI) 54,138,308 53,918,467
Fin Investments (Amortized) 29,955,413 29,003,179
Derivative Financial Instruments 414,811 568,069
Statutory Deposits 7,526,753 7,650,252
Intangible Assets 2,589,600 2,799,350
Right-Of-Use Assets 1,243,436 1,225,507
Associates & JV 141,743 384,051
Other Assets 5,658,078 6,804,368
Total Assets 510,597,997 542,863,078
Deposits from Customers 412,896,967 433,264,270
Deposits from Financial Institutions 12,602,429 13,457,604
Obligations on Securities Sold under Repurchase Agmts 3,017,789 8,129,570
Bills and Acceptances Payable 192,169 263,403
Recourse Obligations on Loans Sold to Cagamas 5,100,015 5,000,015
Derivative Financial Liabilities 354,450 353,146
Insurance Contract Liabilities 0 2,256,984
Debt Securities & Borrowings 11,144,016 11,014,507
Lease Liabilities 904,324 918,482
Other Liabilities 8,005,720 8,558,107
Total Liabilities 454,217,879 483,216,088
NET ASSETS 56,380,118 59,646,990
Share Capital 9,417,653 9,417,653
Retained Profits 42,447,124 44,811,446
Regulatory Reserves 723,829 1,591,435
Treasury Shares 0 (434,752)
Other Reserves 2,085,743 1,949,712
Shareholder Funds 54,674,349 57,335,494
Non-Controlling Interests 1,705,769 2,311,496
TOTAL EQUITY 56,380,118 59,646,990
No of Shares (Thousands) 19,410,692 19,410,692
Weighted Av Shares (Thousands) 19,410,692 19,402,454
Share Price (RM) 4.29 4.54

(RM '000)
Year Ending
2023
31-Dec
2024
31-Dec
Profit Before Tax 8,538,788 8,931,629
Non-Cash Items (Depreciation, Share of Associates, Loan Impairments & Other Items) 667,523 707,861
Operating Profit Before Working Capital Changes 9,206,311 9,639,490
Loans, Advances and Financing (22,592,185) (25,909,832)
Movement in Other Operating Assets (845,352) (145,042)
Deposits from Customers 18,178,210 20,367,303
Movement in Other Operating Liabilities (4,441,026) 6,329,814
Income Tax Expense and Zakat Paid (2,345,300) (2,052,094)
Other Operating Items 3,342 24,881
Cash Flow from Operating Activities (2,836,000) 8,254,520
Net Purchase of Property Plant & Equipment (306,732) (182,534)
Net Sale/(Purchase) of Fin Investments (2,889,644) 1,609,730
Acquisition of Subsidiaries - (1,504,980)
Other Investing Items 353,655 (74,363)
Cash Flow from Investing Activities (2,842,721) (152,147)
Dividends Paid to Shareholders (2,717,497) (3,882,138)
Dividends Paid to Non-Controlling Interests (6,872) (10,161)
Repayment of Lease Liabilities (87,443) (89,808)
Net Issuance/(Redemption) of Debt Securities (1,011,155) (1,620)
Other Financing Items - -
Cash Flow from Financing Activities (3,822,967) (3,983,727)
Net Cash Flow (9,501,688) 4,118,646
Effects of Exchange Rate Changes (1,569,269) (432,703)

Income & Cost Metrics

Year Ending 2023
31-Dec
2024
31-Dec
(RM'000)
Interest Income 18,040,197 18,871,101
Interest Expense (8,984,905) (9,419,995)
Net Interest 9,055,292 9,451,106
Islamic Banking Income 1,561,548 1,707,000
Insurance Service Result 0 35,434
Net Finance Expense from Insurance Contracts 0 (6,246)
Other Operating Income* 2,475,747 2,823,380
Total Operating Income 13,092,587 14,010,674
Operating Cost** (4,414,788) (4,828,132)
Cost-to-Income Ratio (%) 33.7% 34.5%

Year Ending 2023
31-Dec
2024
31-Dec
*Other Operating Income (RM'000)
Fee & Commission Income (Net) 1,949,847 2,178,020
Realised Gain/(Loss) on Fin Instruments 70,368 47,997
Unrealised Gain/(Loss) on Fin Instruments (28,569) 69,908
Dividend Income 5,235 11,141
Foreign Exchange Gain/(Loss) 360,755 392,126
Other Income 118,111 115,188
Total 2,475,747 2,823,380
Annual Report Ref (PDF Page) Note 33 to 35
(p294-296)
Note 35 to 37
(p140-142)

Year Ending 2023
31-Dec
2024
31-Dec
**Operating Cost (RM'000)
Personnel Costs (3,196,151) (3,551,060)
Establishment Costs (818,156) (859,457)
Marketing Expenses (109,805) (122,984)
Administration and General Expenses (290,676) (294,631)
Total Operating Cost (4,414,788) (4,828,132)
Annual Report Ref (PDF Page) Note 36 (p297) Note 38 (p143)
Profit Before Tax (RM'000) 8,538,788 8,931,629
Personnel Costs / Profit Before Tax (%) 37.4% 39.8%
Personnel Costs / Operating Cost (%) 72.4% 73.5%

STAKEHOLDERS

Directors & CEO Remuneration

pbbank-dir-remun2021-1
2024
Group Total: RM87.8 million
Executive & CEO: RM70.6 million
Non-Executive: RM17.2 million

CEO: RM58.9 million - View
pbbank-dir-remun2023-1
2023
Group Total: RM79.0 million
Executive & CEO: RM64.3 million
Non-Executive: RM14.7 million

CEO: RM52.8 million - View
pbbank-dir-remun2022-1
2022
Group Total: RM94 million
Executive & CEO: RM59.7 million
Non-Executive: RM34.3 million

CEO: RM46.8 million - View
pbbank-dir-remun2021-1
2021
Group Total: RM86.4 million
Executive & CEO: RM51.7 million
Non-Executive: RM34.7 million

CEO: RM40.6 million - View

Directors & CEO Interests

As at 31/12/24, Public Bank’s CEO and key director, Tan Sri Tay Ah Lek had a stake of 27.44 million shares in the company. This has not changed since 31/12/21. During the financial year ended 31/12/21, he acquired 9.5 million shares in the company. Previously he held 3,688,845 shares and received 14,755,380 bonus shares as a result of the company’s Bonus Issue in FY2021.

CORPORATE DEVELOPMENTS

Selldown of 50 million shares by Consolidated Teh

Selldown of 50 million shares by Consolidated Teh

Further to their announcement on 10/10/24, the Estate of the late Tan Sri Teh Hong Piow (via Consolidated Teh Holdings Sdn Bhd) has announced the disposal of 50 million shares (0.26%) in Public Bank Bhd. The date of change was shown as 8/10/25. The Teh family still holds over 22% of the banking group after the sell down. The family is required to gradually reduce its stake to 10% within five years through a restricted offer for sale (ROFS) to comply with the Financial Services Act. Which means it still needs to sell down well over 2 billion shares over the next 4 years or over 500 million shares each year on average.

Public Bank shares closed at RM4.34 on 8/10/25 with 4.9 million shares traded at a range of RM4.31 to 4.34. For the preceding

Goodwill Impairment for Public Bank

Goodwill Impairment for Public Bank

Public Bank Bhd’s upcoming Q4 results, scheduled for release on 26/2/25, are expected to reflect the financial impact of the goodwill impairment at its 73.2%-owned subsidiary, Public Financial Holdings (PFH), which had recorded a goodwill impairment on its wholly owned subsidiaries, Public Bank (HK) Ltd, Public Finance Ltd, and Winton (BVI) Ltd. The impairment was approximately HK$810 million or RM463 million.

(Source: TheEdge)

Public Bank Completion of LPI Acquisition

Public Bank Completion of LPI Acquisition

Public Bank (PBB) completed its acquisition of a 44.15% stake in LPI Capital (LPI) in December 2024, acquiring it from the estate of Tan Sri Teh Hong Piow and his private vehicle, Consolidated Teh Holdings Sdn Bhd. This acquisition was for a total of RM1.72 billion in cash, or RM9.80 per share. As a result, PBB now holds a controlling stake* in LPI.

Key Details:
Acquisition: PBB acquired a 44.15% stake in LPI Capital.
Value: The acquisition was valued at RM1.72 billion in cash, or RM9.80 per share which is 1.71x LPI’s book value and 12.4x 2023 earnings.
The stake was acquired from the Estate of Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd.
LPI share price closed at RM13.14, while PBB at RM4.53 at completion of the acquisition on 4/12/25.

Consequences of the Acquisition:

  • Public Bank now holds a controlling stake in LPI, giving it greater influence over its operations.
  • As a subsidiary of Public Bank, LPI is required to dispose of its 1.1% stake in PBB within 12 months due to the acquisition. 
  • The sale of Public Bank shares by LPI could potentially lead to special dividends for LPI shareholders, some estimates suggest RM1.89 per share.
  • The acquisition aligns with PBB’s strategy to enhance its presence in the insurance sector through LPI, a leading general insurer in Malaysia.
  • Some analysts expect the acquisition to be earnings accretive for Public Bank, potentially boosting group earnings by around 2%

 

*PBB considers that it controls LPI Capital Bhd (“LPI”) even though it owns less than 50% of the voting rights. This is because the Group is the single largest shareholder of LPI with a 44.15% equity interest. The remaining 55.85% of the equity shares in LPI are widely held by many other shareholders, none of which individually hold more than 10% of the equity shares (as recorded in the company’s shareholders’ register on 4 December 2024. Since the date of acquisition of LPI on 4 December 2024, there has been no history of the other shareholders collaborating to exercise their votes collectively or to outvote the Group.

Source: Public Bank Berhad 2024 Integrated Annual Report Financial Statements P39.

Public Bank Acquisition of Lonpac and Teh Family Divestment

Public Bank Acquisition of Lonpac and Teh Family Divestment

On 10/10/24 it was reported that Public Bank Bhd would acquire 44.15% stake in LPI Capital for RM1.72bil by launching a Mandatory General Offer for LPI at RM9.80/share. Teh Li Shian Diona, daughter of the late Tan Sri Dr Teh Hong Piow also announced that the Estate and Consolidated Teh Holdings Sdn Bhd intended to undertake a restricted offer for sale of a portion of their Public Bank shares over a 5-year period, in compliance with the Financial Services Act. The acquisition of 44.15% in LPI Capital (175.9 million shares) was completed on 4/12/24.
 (Source: TheStar, TheEdge)

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