Public Bank’s 1Q25 profit rose 5.6% YoY supported by stronger NOII. However NIM contracted, prompting a downward revision to FY25 NIM guidance. Despite this headwind, management reaffirmed its 13% ROE target for the year, underpinned by expectations of decent loan growth, higher NOII from LPI cross- selling efforts and bancassurance, along with potential management overlay writebacks. With results meeting HLIB estimates, profit forecasts are unchanged. HLIB retains its BUY call and sees a GGM-TP of RM5.10 (implying 1.55x FY26 P/B), favouring Public as a defensive pick to navigate market volatility.