Share Price: RM4.43 | Target Price: RM4.90 | Rating: BUY

Public Bank’s 1Q25 earnings are in line with UOBKH expectations, supported by steady non-interest income, solid loan growth and lower provisions. However, net profit declined 3.0% qoq due to slightly softer income and higher opex which led to negative operating JAWS. UOBKH maintains its BUY call albeit with a lower target price of RM4.90 (1.60x 2025F P/B, 12.5% ROE). Valuations have de-rated to near pandemic lows (-1.5SD below mean), and with the sector’s strongest provision buffers, UOBKH is of the view that PBBANK is well-positioned to weather macro headwinds.