Kuala Lumpur: Public Bank Bhd has assessed its credit exposure to potential United States (US) tariff risks as minimal, with an estimation that less than three percent of its total loans could be impacted. The bank anticipates that its asset quality will remain stable despite these challenges.

According to BERNAMA News Agency, managing director and chief executive officer Tan Sri Tay Ah Lek addressed shareholders’ concerns during the bank’s 59th annual general meeting (AGM), acknowledging the uncertainty surrounding US trade policies and their implications on Malaysia’s economy. “Our credit exposure to borrowers who may be directly impacted is not significant,” Tay stated. He emphasized that the bank’s asset quality is expected to remain stable, with less than three percent of total loans potentially affected.

Tay explained that while the banking sector might not face direct consequences from potential US tariffs, there could be indirect impacts if broader economic conditions worsen due to trade tensions. He noted that tariff hikes are currently on hold, which provides temporary relief. “We are confident that we will continue to sail through the current uncertainty from a position of strength,” he added.

Addressing strategies to mitigate potential adverse impacts, Tay mentioned that regional governments are negotiating and exploring solutions. The bank has already implemented precautionary measures to ensure greater prudence in its lending activities, highlighting its proactive approach in navigating the uncertain trade environment.

In a related development, Tay announced that Public Bank is targeting a higher dividend payout of 60 percent of the group’s net profit for the financial year 2025 (FY2025), contingent upon financial performance and regulatory approval. In FY2024, the bank distributed total dividends of RM4.08 billion, representing 57 percent of its net profit, or 21 sen per share.

During the AGM, all five resolutions tabled were approved by shareholders. The meeting was chaired by chairman Lai Wan and attended by the board of directors, senior management, and shareholders, reflecting the bank’s commitment to transparent governance and stakeholder engagement.