Public Bank’s 1Q25 reported results are slightly behind our FY25 estimates but we keep our forecasts for now as, despite some tweaks to guidance, management is maintaining its c. 13% FY25F ROE target on expectations of an improvement in ROE ahead. While its sound asset quality and solid reputation as a defensive bank should help shield investors from downside risks related to US reciprocal tariffs, potential upside may be capped by PATMI downgrades if the earnings momentum does not pick up.