Public Bank stock faces earnings pressure from higher credit charges
Published on 11/13/2026 at 02:09 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSPublic Bank reports mixed nine-month results
- Third-quarter net profit declined as impairment allowances and lower investment income weighed on earnings.
- Nine-month profit was broadly unchanged, while revenue, lending and deposits increased.
- Management cited resilient core lending and deposit businesses amid external financial and economic pressures.
Public Bank Berhad reported lower third-quarter earnings on November 6, with higher credit charges and weaker investment income offsetting growth in banking income. The figures were reported by The Star.
Credit charges weigh on quarterly profit
Public Bank's net profit for the quarter ended September 30 fell to MYR 1.77 billion from MYR 1.84 billion a year earlier. Revenue rose to MYR 7.74 billion from MYR 7.42 billion.
The decline in earnings reflected a MYR 116.4 million increase in loans and financing impairment allowances, which the bank attributed to the normalisation of credit charges. A MYR 90.8 million decline in investment income and a MYR 47 million increase in operating expenses also pressured the result.
Nine-month income remains resilient
For the first nine months of 2026, net profit was nearly unchanged at MYR 5.349 billion, compared with MYR 5.348 billion in the same period last year. Revenue increased to MYR 22.67 billion from MYR 22.08 billion.
Net interest and financing income rose 1.2 percent to MYR 8.55 billion, while non-interest and non-financing income increased 7 percent to MYR 2.71 billion. Public Mutual remained the largest contributor to that income stream, with pretax profit up 14.9 percent to MYR 717.3 million.
Lending and deposits continue growing
Total loans at the end of September increased at an annualised rate of 6.2 percent to MYR 466.5 billion. Customer deposits grew at an annualised rate of 4.1 percent to MYR 461 billion.
Managing director and chief executive officer Tan Sri Tay Ah Lek said the group remained vigilant about inflation, financial-market volatility and other external pressures. He also pointed to sound fundamentals in the core lending and deposit businesses and stronger wealth-management activity.
Malaysia-focused banking platform
Public Bank is a Kuala Lumpur-based financial-services institution serving retail customers and small and medium-sized businesses. Its activities include deposits, residential mortgages, business and vehicle financing, Islamic finance, unit trusts, insurance, brokerage, trustee services and digital banking across Malaysia and selected Asian markets.
The bank competes with major Malaysian lenders including Malayan Banking, CIMB Group and RHB Bank. Public Bank is more concentrated on retail, SME and relationship banking than on large wholesale or investment-banking activities.
Public Bank at a glance
- Company: Public Bank Berhad
- ISIN: MYL1295OO004
- Ticker: 1295.KL
- Sector: Financial Services
- Industry: Regional Banks
- Headquarters: Kuala Lumpur, Malaysia
Malaysia's banking sector remains sensitive to deposit competition, credit costs and changes in global financial conditions. For broader market developments, see current market coverage of the DAX.
