The positive impact of the overnight policy rate (OPR) hikes which occurred a year ago did not recur in the quarter under review, the banking group said in a filing with Bursa Malaysia.

Revenue, nonetheless, jumped 10.9% to RM6.79 billion from RM6.12 billion previously.

Other operating expenses rose by RM104 million, due mainly to higher personnel costs while loan impairment allowance increased by RM61.9 million from a low base of RM1.5 million in the previous corresponding quarter, it said.

“However, net interest and Islamic banking income increased by RM74.3 million due to healthy loan growth achieved during the period.

“Non-interest/financing income improved marginally by RM3 million, mainly due to higher income from unit trust business, but this was partially offset by lower investment income and lower foreign exchange income,” it added.

Public Bank said its profit continued to be supported by healthy loans and customer deposits growth.

Gross loan grew by RM23.7 billion, or 6.2%, to RM405.3 billion as at March 31, 2024, against RM381.6 billion a year ago, contributed mainly by mortgage financing growth, hire purchase financing and commercial property financing.

Total deposits from customers increased by 4.1%, or RM16.5 billion, to RM420.2 billion as at March 31, 2024.

Managing director and CEO Tay Ah Lek said the group continued to sustain a commendable net return on equity of 12.3%, an efficient cost-to-income ratio of 35.4%, and a stable asset quality with a gross impaired loan ratio of 0.62% for the Q1 2024.

“Public Bank group will remain vigilant in its business approach and will continue to maintain its prudent risk profile to weather ongoing risks.

“The group will continue to take a proactive approach to embrace growth opportunities and will also continue to pursue digital transformation, and further step up its environmental, social and governance efforts to remain relevant in today’s dynamic business environment,” he said.