Public Bank Bhd reported a 3.7% year-on-year rise in net profit attributable to equity holders for the second quarter of fiscal year 2026 (2QFY2026), reaching RM1.82 billion, up from RM1.76 billion a year earlier [1, 2, 3, 4]. Revenue increased 3.5% to RM7.61 billion from RM7.35 billion in the same quarter last year [1, 2, 3].

The bank's non-interest income grew significantly by RM165.7 million or 21.3%, driven mainly by higher sales of trust units and increased unit trust management fee income [1, 2, 3]. In contrast, net interest income edged down slightly by 0.2% to RM2.41 billion [1, 2]. Loan impairment charges rose by RM81.1 million reflecting a normalization in credit charges [1, 2, 3, 4]. Other operating expenses increased by RM26.3 million, or 2% [1, 2].

Other comprehensive income reversed to a net gain of RM81 million from a net loss of RM272.2 million in the prior year quarter, mainly due to foreign operations translation gains and reduced cash flow hedge losses [1, 2, 3].

For the first half of 2026, Public Bank’s net profit rose 2% to RM3.58 billion, with total revenue increasing to RM14.93 billion [3, 4]. Total loans as of mid-2026 grew 5.9% annually to RM458.9 billion, while customer deposits rose 4.7% to RM457.6 billion [3, 4]. The bank maintained a cost-to-income ratio of around 35.1% and reported strong loan asset quality metrics, including a gross impaired loans ratio of 0.54% and loan loss coverage of 138.9% [4].

Public Bank declared a first interim dividend of 10.5 sen per share, totaling RM2.04 billion, payable on September 23, 2026 [1, 2, 3, 4]. Managing Director and CEO Tan Sri Dr Tay Ah Lek said, "The group continues to see growing opportunities stemming from the resilient domestic economy and will continue to build on its core competencies to optimise stakeholder value" [3].

Analysts noted the bank’s strong fee income growth. CGS International reported a 25.6% year-on-year rise, driven by a 53.6% increase in asset management-related income [5, 6]. However, CGS International and Hong Leong Investment Bank forecast lower earnings for Public Bank from FY2026 to FY2028 due to higher loan loss provisions and pressure on net interest margins [5, 6].

On August 27, peer Hong Leong Bank announced a 14% net profit increase in 4QFY2026 to RM1.24 billion and a final dividend of 80 sen per share, while Hong Leong Financial Group and Hong Leong Capital also released their financials reporting profit growth and dividend declarations [7, 8, 9].

Public Bank plans to remain vigilant amid global uncertainties including geopolitical risks in West Asia, inflation, and energy price volatility, which may impact customers [3, 4].