Public Bank Berhad Announces Increased Dividend Payout for 2025

KUALA LUMPUR (May 8, 2025) — Public Bank Bhd (KL:PBBANK), Malaysia’s third-largest bank by assets, has announced plans to increase its dividend payout ratio to 60% for the year 2025, up from 57% in 2024. This decision was disclosed by Chief Executive Officer Tan Sri Tay Ah Lek during the bank’s annual general meeting.

The bank’s commitment to maintaining a healthy dividend payout is underscored by its strategy to ensure sufficient capital buffers, which are crucial for supporting future business growth. Despite the increase in the dividend payout ratio, Public Bank has indicated that there are no current plans for share buybacks or new share issuances.

Minimal Credit Exposure to US Tariff Risks

In addition to the dividend announcement, Public Bank has addressed concerns regarding potential risks from US tariff policies. Managing Director and CEO Tan Sri Tay Ah Lek stated that the bank’s credit exposure to these risks is minimal, with less than three percent of its total loans potentially affected. The bank anticipates that its asset quality will remain stable despite the ongoing uncertainty surrounding US trade policies.

Market Performance

On the same day, Bursa Malaysia experienced a slight decline, with the FTSE Bursa Malaysia KLCI (FBM KLCI) falling by 0.46%, or 7.16 points, to close at 1,542.74. This was attributed to profit-taking in selected financial services counters amid cautious sentiment in the regional market.

Public Bank’s strategic decisions reflect its focus on balancing shareholder returns with financial stability, ensuring it remains well-positioned to navigate both domestic and international economic challenges.