KUALA LUMPUR: Moving into the second half of 2026, Public Bank Bhd
said it continues to see growth opportunities from the resilient domestic economy, but will remain vigilant amid significant global headwinds.
"Supported by resilient domestic demand, the Malaysian economy is expected to grow positively with the sound economic fundamentals and the government’s supportive policy measures continuing to cushion the impact of negative shocks," said managing director and CEO Tan Sri Tay Ah Lek in a statement.
In the second quarter ended June 30, 2026, the bank posted a net profit of RM1.82bil, as compared to RM1.76bil in the year-ago quarter, underpinned by revenue of RM7.61bil against RM7.35bil in the previous quarter.
Over the cumulative six-month period, net profit rose to RM3.58bil from RM3.51bil in 1HFY25, while revenue grew to RM14.93bil from RM14.67bil previously.
In line with the performance, the board of directors declared an interim dividend of 10.5 sen per share, with entitlement date on Sept 11, 2026, and scheduled for payment on Sept 23, 2026.
According to the bank, there were improved contributions from both non-interest and non-financing income, which grew 12.2% year-on-year (y-o-y) to RM1.8bil, while operating expenses remained well managed with a cost-to-income ratio of 35.1%.
In other metrics, asset quality remained sound with the gross impaired loans ratio standing at 0.54%, well below the banking industry’s average impaired loan ratio of 1.43%. Loan loss coverage remained at a prudent level of 138.9%, exceeding the 81.3% industry loan loss coverage ratio.
Public Mutual, the group's wholly-owned unit trust business, recorded pre-tax profit growth of 16.6% to RM470.5mil in 1HFY26, accounting for 10% of the group's overall pre-tax profit.
The group said Public Mutual retained its leading retail market share of 44.6% in the domestic retail private unit trust industry (excluding money market funds), with a total of 185 unit trust funds and a net asset value of funds under management of RM119.1bil, as at end-June 2026.
During the period, Public Bank's total loans increased 5.9% y-o-y to RM458.9bil while total customer deposits expanded 4.7% to RM457.6bil.
