Bank Rakyat announces 15pct dividend

KUALA LUMPUR: Bank Rakyat Group has recorded a higher profit before tax and zakat of RM1.70 billion for the financial year ended Dec 31, 2022 (FY2022), compared with RM1.63 billion in the previous year.

Its acting chairman, Datuk Mohd Irwan Mubarak, said the increase in profit was driven by the bank’s strong fundamentals and its focus on core activities despite the economic uncertainties post-pandemic.

“The financial performance in FY2022 was also supported by the group’s financing and investment activities.

“Besides that, adequate provisioning during the year, in line with industry trend, has also boosted the group’s performance,” he said during the announcement of the group’s financial performance and dividend for FY2022 yesterday.

Also present was Minister of Entrepreneur Development and Cooperatives Datuk Ewon Benedick.

The group’s core operating income rose 3.42 per cent to RM5.90 billion from RM5.71 billion previously as a result of stronger financing growth in both Retail and Business financing segment.

Bank Rakyat also announced a dividend of 15 per cent with payout totalling RM426.77 million, payable from March 30, 2023 to its 799,511 members.

The Group’s better performance was further supported by higher fee-based income and collection from charge-off financing recovery which improved by 24.10 per cent to RM440.79 million from RM355.19 million previously.

The Group demonstrated discipline and efficiency in cost management, which were reflected in its healthy cost-to-income ratio of 39.79 per cent, and was much lower than industry average of 44.20 per cent.

The Group’s total assets grew 1.98 per cent or RM2.27 billion to RM117.33 billion compared to RM115.06 billion in the preceding financial year.

Mohd Irwan said the continuous growth momentum was mainly driven by positive traction in gross financing and supported by net growth in treasury assets, corresponding with the Group’s strategy throughout the year.

Meanwhile, return on assets improved to 1.45 per cent from 1.40 per cent in tandem with the industry trend.

The Group’s current account savings account (CASA) increased by 2.84 per cent to RM9.49 billion as compared to RM9.23 billion previously, which resulted from the aggressive cash management activities as well as the continuous promotions in FY2022.

CASA ratio remained stable at 11.14 per cent and is aligned with the Group’s five-year strategic plan aspiration (BR25).

The Group’s shareholders funds increased 4.15 per cent or RM0.89 billion to RM22.55 billion compared with RM21.66 billion in the preceding year, contributed by the Group’s net profit carried forward during the year.

Meanwhile, Ewon said Bank Rakyat Group would continue to support its annual mandate for the cooperative ecosystem by contributing two per cent of its profit before tax and zakat amounting to RM33.57 million to the Cooperative Education Trust Fund Group.

Another one per cent amounting to RM16.78 million will also be contributed to the Cooperative Development Trust Fund, he added.

Source: New Straits Times


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