Public Bank to record HK$1.96bn goodwill impairment, EPS could drop by four sen

Public Bank Bhd announced that its Hong Kong-listed arm, Public Financial Holdings Ltd, will take a HK$1.96 billion goodwill impairment, reflecting higher discount rates and softer medium-term cash-flow expectations. The write-down is expected to push PFHL into a net loss of up to HK$2 billion for the year ending 31 December 2026, compared with a modest profit the previous year. As a result, Public Bank’s consolidated net assets and earnings per share could each fall by four sen, though the non-cash charge will not impact operating cash flow.

The bank stressed that the impairment will not alter the financial positions or regulatory capital ratios of its Hong Kong subsidiaries, which stay above 25.5% CET1 and 26.5% total capital. Additionally, Public Bank is moving to fully acquire PFHL, offering HK$2.50 per share for the remaining 26.77% stake, under a court-approved scheme of arrangement.