PETALING JAYA: Public Bank Bhd’s net profit for the third quarter ended Sept 30, 2026 (Q3’26) fell 3.8% to RM1.77 billion from RM1.84 billion in the corresponding quarter last year, weighed down by higher impairment charges and weaker gains from financial instruments.
Revenue, however, rose 4.4% to RM7.74 billion from RM7.42 billion previously.
The group’s allowance for impairment on loans, advances and financing surged to RM127.2 million during the quarter from RM10.8 million a year earlier. It also recorded a RM1.5 million net loss on financial instruments, compared with a net gain of RM89.2 million previously.
These factors offset growth in its core income streams, including net interest income, which increased 2.9% to RM2.44 billion, while net fee and commission income rose 8.3% to RM611.6 million.
Other operating income also increased 14.8% to RM166.1 million.
For the nine months ended Sept 30, 2026, the group’s net profit attributable to shareholders was marginally higher at RM5.35 billion against RM5.35 billion in the corresponding period last year.
Revenue increased 2.7% to RM22.67 billion from RM22.08 billion.
Pre-tax profit, however, eased to RM7.05 billion from RM7.1 billion, as higher impairment charges on loans and other assets weighed on earnings.
The group’s allowance for impairment on loans, advances and financing increased to RM294.5 million from RM83.9 million, while impairment allowances on other assets rose to RM20.2 million from RM8.3 million.
In a statement, Public Bank said net interest and financing income grew 1.2% to RM8.55 billion, while non-interest and non-financing income increased 7% to RM2.71 billion, mainly supported by its unit trust, bancassurance and foreign exchange businesses.
Its total loans expanded at an annualised rate of 6.2% to RM466.5 billion as at end-September, while customer deposits grew 4.1% to RM461 billion.
Domestic SME financing, hire purchase financing and residential property financing recorded annualised growth rates of 12.6%, 6.5% and 4.3% respectively.
The group maintained a gross impaired loans ratio of 0.55%, with its domestic ratio at 0.38%, significantly below the banking industry’s 1.42%.
Its cost-to-income ratio stood at 35%, while net return on equity was 12%.
Managing director and CEO Tan Sri Tay Ah Lek said the group continued to demonstrate resilience amid soft market conditions, supported by its core lending and deposit businesses.
He said non-interest and non-financing income also supported the group’s performance, with proactive customer engagement and intensified cross-selling efforts delivering positive results in its wealth management business.
Looking ahead, Tay said global economic growth was expected to remain modest and uneven, with downside risks arising from the Middle East conflict, commodity price volatility, trade fragmentation and tighter global financial conditions.
He said the group would remain vigilant in managing risks while proactively growing its business, supported by its solid fundamentals and prudent business strategies.
