LKF Partners

PUBLIC BANK BERHAD (PBBANK 1295)

| Result Updates

QUARTERLY RESULTS

Quarter Ending Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25
Q2 Q3 Q4 Q1 Q2 Q3 Q4
Interest Income 4,698,234 4,718,530 4,787,045 4,750,782 4,752,188 4,692,451 4,700,359
Interest Expense (2,380,260) (2,312,214) (2,377,760) (2,370,430) (2,341,514) (2,321,658) (2,278,492)
Net Interest 2,317,974 2,406,316 2,409,285 2,380,352 2,410,674 2,370,793 2,421,867
Islamic Banking Income 416,990 437,540 439,215 448,110 462,864 466,604 461,810
Insurance Services 35,434 78,703 87,170 98,734 83,070
Net finance expense from insurance contracts (6,246) (10,039) (9,780) (10,220) (10,503)
Other Operating Income 674,751 733,879 765,115 703,444 700,686 798,869 761,946
Other Operating Expenses (1,199,377) (1,223,989) (1,206,643) (1,259,473) (1,299,492) (1,268,659) (1,301,078)
Loan Impairments (4,357) 16,214 (439,121) (43,358) (34,118) (10,791)
Other Impairments/Writebacks 525 (4,508) 12,630
Associates 74,068 78,948 73,926 14,812 15,110 11,757 14,342
Profit Before Tax 2,280,049 2,448,908 2,070,965 2,312,551 2,333,639 2,452,579 2,444,084
Tax Expense (499,612) (537,090) (401,284) (519,605) (527,515) (544,721) (543,903)
Profit After Tax 1,780,437 1,911,818 1,669,681 1,792,946 1,806,124 1,907,858 1,900,181
Non-controlling Interests 1,226 719 129,801 (47,626) (45,948) (65,232) (23,881)
Net Profit After Tax 1,781,663 1,912,537 1,799,482 1,745,320 1,760,176 1,842,626 1,876,300
Diluted EPS (sen) 9.18 9.85 9.29 9.04 9.11 9.54 9.72
BALANCE SHEET
Gross Loans 410,959,337 414,482,406 424,170,971 430,065,214 434,896,610 441,239,123 445,758,078
Impaired Loans (4,044,704) (3,914,826) (3,699,273) (3,656,948) (3,602,901) (3,530,391) (3,424,847)
Net Loans 406,914,633 410,567,580 420,471,698 426,408,266 431,293,709 437,708,732 442,333,231
Fin Assets (FV through P&L) 2,821,890 1,448,887 4,001,101 4,292,877 4,298,857 4,875,136 3,978,524
Fin Investm (FV through CI) 54,912,953 53,453,994 53,918,467 53,351,710 47,979,844 48,831,237 50,198,502
Fin Investm (Amortized) 29,917,761 28,536,954 29,003,179 30,185,682 29,978,447 31,034,893 30,821,009
Other Assets 31,005,466 32,806,247 35,468,633 35,475,078 33,157,652 33,188,149 34,319,891
Total Assets 525,572,703 526,813,662 542,863,078 549,713,613 546,708,509 555,638,147 561,651,157
Deposits from Customers 424,850,861 425,094,709 433,264,270 437,055,900 440,939,099 446,209,286 447,113,622
Deposits from Financial Institutions 14,119,195 12,236,273 13,457,604 13,621,667 13,186,222 13,135,558 14,625,343
Debt Securities 11,237,145 10,815,943 11,014,507 10,360,040 9,343,296 11,930,843 12,649,937
Other Liabilities 17,328,672 21,610,376 25,479,707 29,472,749 22,504,930 23,866,847 24,820,647
Total Liabilities 467,535,873 469,757,301 483,216,088 490,510,356 485,973,547 495,142,534 499,209,549
Net Assets 58,036,830 57,056,361 59,646,990 59,203,257 60,734,962 60,495,613 62,441,608
Share Capital 9,417,653 9,417,653 9,417,653 9,417,653 9,417,653 9,417,653 9,417,653
Shareholders Equity 56,294,720 55,480,874 57,335,494 56,950,826 58,505,422 58,251,159 59,937,674

ANALYST RATINGS

Results Announcement Date: 25 February 2026 (Closing Share Price: RM4.95)
Below is a summary of analyst ratings and forecasts for Public Bank as at 26 February 2026:
Rating Target Price EPS
FY2026 (E)
EPS
FY2027 (E)
DPS
FY2026 (E)
DPS
FY2027 (E)
Remarks
Affin Hwang Investment Bank Hold 5.05 0.383 0.40 0.245 0.24 Target Price raised from RM4.60
Hong Leong Investment Bank Buy 5.50 0.40 0.42 0.239 0.25 Target Price raised from RM5.10
Maybank Investment Bank Buy 5.55 0.40 0.42 0.24 0.25 Target Price raised from RM5.10
RHB Investment Bank Buy 5.45 0.39 0.40 0.23 0.24 Target Price raised from RM5.00
UOB Kay Hian Buy 5.55 0.402 0.425 0.262 0.28
Average 5.42 0.395 0.413 0.243 0.252
*(E) = Estimate/Forecast
Results Announcement Date: 21 November 2025 (Closing Share Price: RM4.28)
Below is a summary of analyst ratings and forecasts for Public Bank as at 24 November 2025:
Rating Target Price EPS
FY2025 (E)
EPS
FY2026 (E)
DPS
FY2025 (E)
DPS
FY2026 (E)
Remarks
Affin Hwang Investment Bank Hold 4.60 0.369 0.377 0.221 0.226 Forecast EPS for FY25 and FY26 were reduced slightly
Hong Leong Investment Bank Buy 5.10 0.378 0.398 0.225 0.239 Forecast DPS raised from 22.5 sen
Maybank Investment Bank Buy 5.10 0.37 0.39 0.22 0.24
RHB Investment Bank Buy 5.00 0.37 0.38 0.22 0.23 Target Price raised from RM4.75, Forecast FY26 EPS reduced from 39 sen.
Average 4.95 0.372 0.386 0.222 0.234
*(E) = Estimate/Forecast
Results Announcement Date: 26 August 2025 (Closing Share Price: RM4.42)
Below is a summary of analyst ratings and forecasts for Public Bank as at 27 August 2025:
Rating Target Price EPS
FY2025 (E)
EPS
FY2026 (E)
DPS
FY2025 (E)
DPS
FY2026 (E)
Remarks
Affin Hwang Investment Bank Hold 4.60 0.377 0.397 0.221 0.226 Downgrade from Buy, TP downgraded from RM5.00 to RM4.60.
Hong Leong Investment Bank Buy 5.10 0.378 0.398 0.225 0.239
Maybank Investment Bank Buy 5.05 0.37 0.39 0.22 0.24
RHB Investment Bank Neutral 4.75 0.37 0.39 0.22 0.23
UOB Kay Hian Buy 5.25 0.375 0.397 0.225 0.239
Average 4.95 0.374 0.394 0.222 0.235
*(E) = Estimate/Forecast
Based on the Average EPS forecast, Public Bank's estimated Net Profit amounts to RM7.26 billion and RM7.64 billion  for FY2025 and FY2026 respectively. - RM7.26 billion for FY2025 (ROE 12.7%). - RM7.64 billion  for  FY2026. If management's target of 13% ROE is achieved, it would equate to a Net Profit of RM7.41 billion for FY2025 and EPS of 38.2 sen.

COMMENTARY

Public Bank Results Update (Dec 2025)

Public Bank Results Update 2025Q4 (DECEMBER 2025)

Results Announcement Date: 25 February 2026 (Closing Share Price: RM4.95)

Public Bank’s Net Profit of RM1.88 billion was up 4.2% from pcp with slight gains in Net Interest, Islamic Banking and Insurance Services Income qoq. A dividend of 12 sen per share was declared bringing full year payout to 22.5 sen against full year EPS of 37.4 sen. For FY2025:

  • Net Profit clocked in at RM7.22 billion which is a 1.1% increases from FY2024. This includes a higher loan impairment provision of RM88 million for the year.
  • Net Interest Income expanded from RM9.45 billion in FY2024 to RM9.54 billion in FY2025.
  • Profit Before Tax, Impairments and Writebacks came in at RM9.62 bil. This is growth rate of 2.1% from RM9.42 bil in FY2024.
  • Customer Deposits grew 3.2% from RM433.3 billion to RM447.1 billion, compared to loan growth of 5.1%.
  • A slight weakening of Individual Deposits from RM226.5 bil to RM221.0 bil was offset by an increase in deposits from Business Enterprises from RM115.8 bil to RM129.5 bil.
  • CASA Deposit Ratio (Demand Deposits & Savings Deposits) increased slightly from 27.8% to 28.0%.

Q4 Highlights
Operating Expenses were up 7.8% from pcp and a higher tax expense.
Cost-Income Ratio of 35.7%, together with previous quarter figure 34.9% reveals a concerning negative trend when compared to FY 2023 (33.8%) and 2024 (34.8%).

2026 Key Guidance maintained:
ROE of 12.0% to 13.0% (Net Profit of RM7.2 to RM7.8 billion / EPS of 37 to 40 sen)
Loan growth of 4% to 5%
Double-digit percentage growth in Non-Interest Income
Net Credit Cost in the single digit
Net Interest Margin slight compression bias
Dividend payout ratio of around 60%

However some analysts are flagging possible dividend upside for PBBank as management is expecting an even higher potential CET1 uplift of slightly above 1.0ppt with the Basel 3 reform adoption in July 2026 compared to its previous guidance of 0.5 to 1.0ppt. A 2026 CET1 uplift to 14.9% potentially would give the bank capacity of raise its dividend payout to 65%+ as compared to 60% currently while keeping CET1 above 13.5% to 14%. in line management’s comfort level.

Further Reading:
BNM’s proposed capital requirement increase for banks credit positive — Moody’s (TheEdge 9/4/19)
A boon for Public Bank (TheStar 5/3/26)
Banks’ dividend guidance fails to excite but analysts still expect some positive surprises ahead (TheEdge 14/3/26)

Public Bank Results Update (Sep 2025)

Public Bank Results Update 2025Q3 (SEPTEMBER 2025)

Results Announcement Date: 17 November 2025 (Closing Share Price: RM4.30)

Public Bank’s Net Profit was down 3.6% from pcp on a slightly lower Net Interest Income, Associates income and higher provisioning. These were partially offset by higher contribution from Insurance Services and Other Operating Income.

  • Cost-Income Ratio of 34.9%, while commendable compared to March & June 2025 quarter of 35.7% and 36.4% respectively, shows a more concerning trend emerging when compared to FY 2023 (33.8%) and 2024 (34.8%).
  • Since 31/12/25, Net Loans were up by 4.1% while Customer Deposits grew 3.0%.
  • Year-to-date (9 months to 30/9/25), Net Profit was flat compared to pcp.
  • Loan growth target of 5-6% maintained.
  • NIM compression of 5bps to 10bps expected.
  • ROE guidance tweaked down slightly to 12.5-13% on concerns over NIM and continued competitive pressure on asset yields and funding costs.

According to RHB Research:

  • PBB wrote back another RM68m of management overlays, bringing the YTD total to around RM300m and leaving a remainder of around RM1 billion. Previously it wrote back RM158m in overlays during Q2.
  • Upcoming changes to credit risk capital framework will see PBB sitting on a significant amount of excess capital that can be returned to shareholders and help lift long-term ROEs.
Public Bank Results Update (Jun 2025)

Public Bank Results Update 2025Q2 (JUNE 2025)

Results Announcement Date: 26 August 2025 (Closing Share Price: RM4.42)
Public Bank’s results were dragged by higher costs and provisions. FY2025H1 ROE was 12.6% compared to 13.2% in 2024) and was slightly below management’s target of 13% for 2025.

  • Profit Before Tax (PBT) of RM2.33 billion was up 2.3% from pcp.
  • Net Profit of RM1.76 billion was down 1.2% from pcp.
  • For the 6 months ending 30/6/25 PBT and Net Profit were up 5.3% and 2.1% respectively.
  • Wrote back MYR158m in overlays during the quarter (1H25: MYR216m writeback), remaining management overlays stand at around RM1 billion.
  • Target ROE of 13% for FY25 maintained, so far it is running at around 12.5%
  • Slight uptick in Cost-to-Income Ratio to 35.3% (there is a one-off legal cost of RM30m).
  • Net Loans grew 6.0% while Customer Deposits grew 3.8% over the 12 months period.
  • PBB declared a 10.5 sen dividend which was 0.5 sen higher than pcp.
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