KUALA LUMPUR: PBBANK expects the Malaysian banking sector to remain resilient underpinned by ample liquidity and sound capital buffers, even as external macroeconomic headwinds and financial market volatility persist.
Managing director and chief executive Tan Sri Tay Ah Lek said that while the global expansion remains modest and subject to geopolitical strains, commodity volatility, and tighter financial conditions, Malaysia’s domestic economy will stay anchored by sustained consumer demand and multi-year project rollouts.
For the third quarter ending Sept 30, 2026 (3Q26), Public Bank’s net profit slipped 3.77% year-on-year (y-o-y) to RM1.77 billion from RM1.84 billion recorded in 3Q25.
The contraction was mainly driven by a normalisation in credit charges, which saw loan impairment allowances increase by RM116.4 million, coupled with softer investment gains due to higher bond yields.
Group operating revenue for the quarter grew 4.37% y-o-y to RM7.74 billion compared to RM7.42 billion in the previous corresponding period. Top-line expansion was supported by a 2.6% rise in net interest and Islamic banking income alongside higher fee-based earnings, particularly from unit trust management and bancassurance products.
On a quarter-on-quarter (q-o-q) basis, top-line performance climbed 0.96% from the RM7.67 billion reported in the second quarter ended June 30, 2026 (2Q26). However, bottom line eased 2.82% sequentially from RM1.82 billion in 2Q26, dampened by lower investment income and a 10.4% increase in quarterly loan loss provisions.
For the cumulative nine-month period (9M2026), net profit held steady at RM5.35 billion, up marginally by 0.02% from RM5.35 billion in 9M2025.
Cumulative nine-month revenue expanded 2.65% y-o-y to RM22.67 billion from RM22.08 billion. Overall asset quality remained pristine, with its gross impaired loans ratio standing at 0.55%, far outperforming the industry benchmark of 1.42%.
No interim dividend was proposed or declared for the individual third quarter. For the cumulative period to date, total dividends declared stood at 10.5 sen per share, unchanged from the previous year, following the first interim payout disbursed on Sept 23, 2026.
Going forward, the banking group will prioritise credit prudence, strengthen its wealth management reach, and expand its regional footprint while maintaining its leading market share in retail mortgages, auto finance, and small and medium enterprise (SME) lending.