# Public Bank: Red Carpet Banking instead of a private bank

> Public Bank (Malaysia): official RCB tiers Gold from RM 300,000 and Elite from RM 1,000,000; Public Mutual is the No.1 unit-trust company; PIDM cover up to RM 250,000.

Author: Adam Ihsan — Venture Partner (https://wiki.private.law/en/authors/adam)
Last modified: 2026-10-20T11:04:00.000Z
Canonical: https://wiki.private.law/en/public-bank-private
Publisher: wiki.private.law (https://wiki.private.law)
Version: fad5fffcc2f4dc66e2c0185daf12d6b9e5dd7c50e16e620b6715eda215caea0c
Cite as: Public Bank: Red Carpet Banking instead of a private bank. wiki.private.law. https://wiki.private.law/en/public-bank-private. Version fad5fffcc2f4dc66e2c0185daf12d6b9e5dd7c50e16e620b6715eda215caea0c.
Topics: banking
Jurisdictions: malaysia, hong-kong, global
Functional tags: private-banking
Product tags: bank, wealth-planning, investment, estate-planning
Semantic tags: private-banking, bank, wealth-planning, investment, estate-planning

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## Concept

Public Bank is Malaysia's third-largest banking group: total assets of RM 561.65 billion, a record net profit of RM 7.22 billion for FY2025, and a market capitalisation of about RM 99 billion. Important: Public Bank has NO standalone "Private Banking" brand in Malaysia. Its affluent/HNW programme is Red Carpet Banking (RCB Gold and RCB Elite), offered by Public Bank Berhad and Public Islamic Bank Berhad through branches and dedicated RCB Centres, while the group's wealth engine is Public Mutual — the country's No. 1 private unit-trust company.

## History and evolution

- **30 December 1965** — incorporated by Teh Hong Piow, a former general manager of Maybank.
- **6 August 1966** — commenced business; first branch on Jalan Gereja, Kuala Lumpur.
- **6 April 1967** — listed on the stock exchange.
- **Early 1990s** — regional expansion: Hong Kong, Cambodia (1992), Vietnam (1992), Laos, Sri Lanka, China.
- **31 December 2018** — Teh retired as chairman, becoming Chairman Emeritus from 2019.
- **12 December 2022** — the founder died; the family began reducing its 23.41% stake to 10% over five years via restricted offers for sale (approved by BNM and the Ministry of Finance; first tranche completed 9 June 2026 — 21.38%).
- **December 2024** — acquisition of 44.15% of insurer LPI Capital for RM 1.72 billion.
- **September 2026** — proposal to privatise Hong Kong-listed Public Financial Holdings at HK$ 2.50 per share (~ RM 380 million; pending approvals).
> 🍓 Deposit protection: PIDM insures up to RM 250,000 per depositor per member bank; conventional and Islamic deposits are insured separately. Unit trusts, Gold Investment Account and structured products are NOT PIDM-protected.

## Regulation

The banking entities are licensed by BNM (FSA 2013 / IFSA 2013) and are PIDM members; Public Mutual and Public Investment Bank are supervised by the Securities Commission Malaysia (SC). Compliance record: on 9 April 2025 the SC reprimanded Public Mutual, imposed a RM 1,300,000 penalty and directed restitution of RM 265,100 to affected clients over supervision failures involving a unit-trust consultant who misappropriated investor monies (including CDD and source-of-funds failures). Public Bank Berhad is not named as a recipient of an administrative monetary penalty in [BNM's published entries for 2024–2025](https://www.bnm.gov.my/enforcement-actions-regulatees). The SC action described above concerns Public Mutual.

## Source of wealth

The core clientele is SME and family-business owners (the bank's historical franchise), professionals and conservative savers graduating into unit trusts; the Chinese-Malaysian business community has historically been central. Verification of [source of funds](https://wiki.private.law/source-of-funds) follows Malaysia's standard AML requirements.

> 💡 Official RCB thresholds per the bank's T&Cs: Gold — from RM 300,000 in aggregate (deposits + investments + bancassurance); Elite — from RM 1,000,000. There is no published "RM 3 million private banking" tier — a common assumption that does not hold.

## Who it serves

Affluent clients in Malaysia and the region who want premium branch-based servicing, preferential deposit rates and access to the group's investment shelf — without the format of an exclusive private bank.

## Services

RCB Centres with relationship servicing; preferential deposit rates; the PB Visa Infinite card; an investment shelf of Public Mutual unit trusts and PRS retirement schemes, structured products and a Gold Investment Account; bancassurance with AIA and general insurance via LPI Capital; share trading and margin financing through Public Investment Bank; will-writing and trustee services via PB Trustee Services; Islamic wealth solutions via Public Islamic Bank. Offshore booking sits with Public Bank (L) Ltd in Labuan. Discretionary portfolio management and a dedicated family-office unit are not publicly offered or disclosed.

## Entities

| Jurisdiction | Legal entity | Form and supervision | Role |
| --- | --- | --- | --- |
| Malaysia | Public Bank Berhad | BNM (FSA 2013), PIDM | Core bank, RCB programme |
| Malaysia | Public Islamic Bank Berhad | BNM (IFSA 2013), PIDM | Islamic banking and RCB |
| Malaysia | Public Mutual Berhad | SC-licensed | No. 1 in unit trusts and PRS (43.6% retail share, NAV RM 106.3bn at end-2025) |
| Malaysia | Public Investment Bank Berhad | BNM / SC | Broking, margin financing |
| Malaysia | PB Trustee Services Berhad | Trust company | Wills, estate planning |
| Hong Kong | Public Bank (Hong Kong) Ltd / Public Finance Ltd (Public Financial Holdings, 73.23%) | HKMA; parent listed on HKEX (privatisation pending) | Network of 72 outlets in Hong Kong |
| Cambodia | Cambodian Public Bank Plc | National Bank of Cambodia | 32 branches |
| Vietnam | Public Bank Vietnam Ltd | State Bank of Vietnam | 40 branches |
| Labuan | Public Bank (L) Ltd | Labuan jurisdiction | Offshore booking |

## Strengths

- Conservatism and asset quality: a gross impaired loans ratio of 0.5% — best-in-class; net ROE of 12.8%.
- A leading retail investment platform: Public Mutual earned RM 700.8 million in FY2025.
- A broad network: 314 branches in Malaysia plus Hong Kong, Cambodia, Vietnam, China, Laos, Sri Lanka and Singapore.
- A full cycle for business owners: from payments to estate planning.
## Where it falls short

Those seeking classic private banking with discretionary mandates, a family office and global booking will not find it here: such offerings are not publicly disclosed. Affluent-segment AUM and client counts are not disclosed either, so the scale of the HNW business cannot be assessed from public data.

In short: Public Bank offers a "red carpet" for affluent Malaysians and family businesses — the reliability of a systemic bank, a market-leading fund platform and moderate entry thresholds instead of a closed private-banking club.

## Q/A

### Does Public Bank have a private bank?

There is no standalone "Private Banking" brand in Malaysia: affluent clients are served by Red Carpet Banking (Gold and Elite) plus Public Mutual's investment products.

### What is the RCB entry threshold?

Per the official T&Cs: Gold — from RM 300,000 in aggregate (deposits, investments, bancassurance); Elite — from RM 1,000,000. No published RM 3 million tier exists.

### Are clients' funds insured?

Deposits are protected by PIDM — up to RM 250,000 per depositor per member bank, conventional and Islamic separately. Unit trusts, GIA and structured products are not insured.

### Is offshore banking available?

Yes, the group includes Public Bank (L) Ltd in the Labuan offshore centre; terms for non-residents are not publicly disclosed — check with the bank.

### Who controls the bank after the founder's death?

The Teh family is reducing its stake from 23.41% to 10% over five years (21.38% after the first tranche; approved by BNM and MOF). The second-largest holder is the EPF pension fund (~16.92%).

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