Revenue expanded 7% to RM27.20 billion from RM25.41 billion.

Net interest and Islamic banking income increased by RM541.3 million, or 5.1%, mainly due to improved net interest/financing margin.

“Non-interest income increased by RM376.8 million (15.2%), mainly due to higher unit trust and stockbroking income, as well as higher investment and foreign exchange income.

“In addition, profit contribution from an associated company improved by RM222.2 million during the year,” the bank said in a Bursa Malaysia filing.

PBB said the improved performance was partially offset by higher other operating expenses of RM413.3 million, mainly due to higher personnel costs.

Impairment allowance for loans/financing and other assets increased by RM334.1 million, which was mainly due to the recognition of a one-off impairment on the goodwill of RM473.8 million, which is a non-cash item, in respect of the group’s Hong Kong operations in the current year.

The group’s liquidity position also remained stable and healthy, with an average liquidity coverage ratio of 133.4% in 2024.

PBB recorded total loans of RM424.2 billion as at end-December 2024, which increased by 6.3% when compared with the same period last year.

“During the year, the bank saw strong growth in newly approved domestic loans for hire purchase financing and small and medium enterprise (SME) financing, which grew by 16.3% and 41%, respectively.

These will continue to support a stable loan growth in 2025,” it said.

Total customer deposits stood at RM433.3 billion as of the end of December 2024, representing a 4.9% growth from the previous corresponding period.

Domestic customer deposits increased by 4.8% to RM403.5 billion, mainly driven by core deposit segments.

“For 2024, the Public Bank Group’s gross loan to fund and equity ratio stood at 83.2%, reflecting its healthy liquidity position,” it said.

Meanwhile, for the fourth quarter (Q4) of FY2024, PBB said its net profit increased 11.2% to RM1.79 billion from RM1.61 billion a year earlier, while revenue was 7.8% higher at RM7.06 billion against RM6.55 billion previously.

Managing director and CEO Tay Ah Lek said in recognition of the good performance in 2024, the board of directors has declared a second interim dividend of 11 sen per share.

With the first interim dividend of 10 sen per share declared in August 2024, the total dividend for 2024 amounted to 21 sen.

“This represents a total payout of RM4.08 billion or 57% of the group’s net profit for 2024.

“The second interim dividend is scheduled for payment on March 24, 2025, with a dividend entitlement date of March 13, 2025,” he said.

Moving forward, Tay said Malaysia’s operating environment is expected to be favourable at a positive growth trajectory, supported by steady domestic demand, services sector growth, tourism activities, and further progress of investment and infrastructure projects.

“The group will continue to position itself for sustainable growth in the coming years,” he added.

As at 3pm, Public Banks’s share price was up by 6 sen or 1.35% at RM4.52, giving it a market capitalisation of RM87.74 billion.