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RAM Ratings assigns P1 rating to Public Bank’s proposed RM10 bil CP Programme
Published on 02 Oct 2025.
RAM Ratings has assigned a P1 rating to Public Bank Berhad’s (Public Bank or the Group) proposed RM10 bil Commercial Papers (CP) Programme.
The P1 rating of the proposed CP Programme is aligned with the Group’s short-term financial institution rating and reflects Public Bank’s entrenched domestic franchise, exceptional asset quality and systemic importance in Malaysia.
The assigned rating is underpinned by the Group’s robust credit fundamentals, which remained resilient through the first half of FY Dec 2025. Its gross impaired loan ratio clocked in at 0.5% as at end-June 2025 while annualised credit costs were benign at 3 bps during the period. Public Bank’s common equity tier-1 capital ratio of 14.0%, loan loss coverage (with regulatory reserves) of 236% and healthy pre-provision earnings provide a solid buffer against any potential increase in credit losses arising from current macroeconomic headwinds.
In 1H FY Dec 2025, the Group’s pre-tax profit climbed 5.3% to RM4.6 bil (1H FY Dec 2024: RM4.4 bil), driven by strong loan growth, contributions from the recently acquired LPI Capital Berhad, and higher investment and foreign exchange income. This was partially offset by elevated operating costs, mainly due to a one-off legal compensation expense. The return on risk-weighted assets stayed stable at an annualised 2.61% in 1H FY Dec 2025 (FY Dec 2024: 2.61%).
Analytical contacts
Jeremy Noel Paul
(603) 2708 8230
jeremynp@ram.com.my
Wong Yin Ching, CFA
(603) 2708 8280
yinching@ram.com.my
Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.
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Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
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