KUALA LUMPUR: Public Bank Bhd
reported an improved financial peformance in the first quarter of 2025 (1Q25), attributed to growth in net interest income as well as a surge in non-interest income contribution from its newly acquired insurance business.
"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-income ratio of 35%, coupled with continued top-line growth, return on equity stood at 12.4%," said Public Bank managing director and CEO Tan Sri Tay Ah Lek in a statement.
The financial group annnounced a quarterly net profit of RM1.75bil, up from RM1.65bil in the year-ago quarter, raising its earnings per share to 9.04 sen from 8.52 sen previously.
This was on the back of revenue of RM7.31bil, an increase from RM6.65bil in the previous comparative quarter.
During the three-month period, non-interest income increased 18.9% year-on-year (y-o-y) to RM772.1mil, mainly owing to the contribution from general insurer LPI Capital Bhd, as well as the enhanced performance of the group's investment and foreign exchange income.
Public Bank's 44.15% stake in LPI saw a contribution of RM32.6mil to the group's net profit attributable to shareholders in 1Q25.
The group's wholly-owned unit trust company, Public Mutual, recorded a quarterly pre-tax profit of RM208mil, which constituted 9% of the group's total pre-tax profit.
"Supporting this performance was its market-leading position, with a retail market share of 33.9% and RM97bil in net asset value across 185 unit trust funds as at end-March 2025," said the group.
Meanwhile, the group's net interest and financing income improved 3.5% to RM2.8bil.
During the quarter, Public Bank's loans portfolio grew 6.3% to RM403.9bil on an annualised basis.
The group's deposit franchise maintained a healthy liquidity position with gross loan-to-fund and equity ratio of 83.9% as at end-March 2025.
