Public Bank stock fell 1.71 percent on October 7 as margins tightened

Published on 10/07/2026 at 07:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Public Bank stock carries a MYR 3.58 billion first-half profit, up 2 percent year on year in 2026. Net interest margin fell 3 basis points to 2.08 percent in Q2.

Public Bank, MYL1295OO004, Illustration mit AI erstellt.

Public Bank stock (ISIN MYL1295OO004) fell 1.71 percent to MYR 4.59 on Bursa Malaysia on October 7, 2026, as investors weighed resilient first-half earnings against pressure on net interest margins. The latest figures show a bank with steady profitability, but a narrower margin cushion.

First-half profit reaches MYR 3.58 billion

Public Bank reported net profit of MYR 3.58 billion for the first half of fiscal year 2026, up 2 percent from the same period a year earlier, according to The Edge Malaysia on October 7, 2026. Non-interest income rose 12 percent to MYR 186.6 million, supported by unit trust-related fees and foreign exchange income.

The earnings improvement was partly offset by MYR 94.1 million in loan and financing impairment allowances. That balance matters because the bank's profit growth depends increasingly on fee income while credit costs normalize.

Margin pressure remains measurable

Public Bank's second-quarter net interest margin slipped 3 basis points quarter on quarter to 2.08 percent, its lowest level since 2020, The Edge reported on October 7, 2026. The comparison is important: profit still grew year on year, but the spread earned on lending and funding moved in the opposite direction.

Sector conditions add another constraint. The Star reported on October 2, 2026, that Hong Leong Investment Bank expected renewed deposit competition toward year-end and limited scope for meaningful fourth-quarter margin recovery. That backdrop makes Public Bank's 2.08 percent margin a key operating figure for investors.

Consensus target stays above MYR 5.00

Analyst consensus published by MarketScreener lists an Outperform rating from 18 analysts and an average target price of MYR 5.588. The target lies 21.8 percent above the MYR 4.59 share price, although the consensus figures were published with a previous close of MYR 4.850.

The bank's recent Hong Kong subsidiary proposal also remains part of the valuation discussion. Public Bank plans to acquire the remaining 26.77 percent of Public Financial Holdings for HKD 734.75 million, while analysts cited by The Star described the earnings impact as negligible and the capital effect as broadly neutral.

Public Bank stock trades below yearly high

Public Bank stock was last at MYR 4.59 on Bursa Malaysia on October 7, 2026, at 12:29 p.m. MYT. The session range was MYR 4.58 to MYR 4.68, while the 52-week range stood at MYR 4.18 to MYR 5.29 and market capitalization was MYR 89.1 billion.