Bank Rakyat’s profit up 5%, declares 18% dividends totalling RM495mil for 2012

  • Business
  • Thursday, 14 Mar 2013

KUALA LUMPUR: Bank Rakyat has declared dividends totalling 18% amounting to RM495mil for the financial year ended Dec 31, 2012.

The bank announced the dividend of 16% involving a cash payout of RM440mil and bonus share dividend of 2% amounting to RM55mil.

Bank Rakyat's profit before tax and zakat rose 4.7% to RM2.1bil in 2012 from RM2.02bil in financial year 2011.

Speaking at a briefing on the bank's results, Domestic Trade, Co-operative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the bank's profit was driven by growth in its total income from financing and deposit coupled with strong assets quality “despite facing challenges in the local banking industry”.

Consumer financing remained as the major focus of the bank's business, accounting for 88.5% of the bank's total financing while commercial financing accounted for the remaining 11.5%.

The country's largest Islamic cooperative bank's gross income rose by 13.2% or RM726.6mil to RM6.23bil compared with RM5.50bil in the previous year.

Ismail said net income after profit distribution to depositors grew by 2.9% to RM3.34bil compared with RM3.24bil a year ago.

He added the income from financing increased to RM4.96bil last year compared to RM4.46bil in 2011.

“The fee-based income increased 20.5% to RM110.9mil from RM92mil previously, with 80.1% contributed by income from Takaful commissions, wills issuances and ATM service fees,” Ismail noted.

Ismail said the bank's total assets increased 9.3% last year to RM79.21bil compared with RM72.48bil in 2011, with return on asset remained strong at 2.8%.

“Asset quality continued to remain strong as at the end of December 2012, with a gross impaired financing ratio of 2.5%,” he added.

Meanwhile, the bank's deposits grew 7.1% or RM4.16bil to RM62.67bil in 2012 compared with RM58.51bil previously.

However, the bank's net profit declined 13% to RM1.74bil from RM2bil in the same period a year ago.

Moving forward, the bank is targeting to invest RM300mil as capital expenditure in financial year 2013, and planned to raise it through its internal funds.

“We are targeting to upgrade several branches, setting up three new main branches, five service branches, add 110 ATM machines and 20 pawn brooking Ar-Rahnu Xchange outlets.

Ismail said the three main branches would be located in Lapis, Johor, Marang, Terengganu and in Kampar, Perak, with each costing RM1mil.

To date, Bank Rakyat has 141 branches and 56 Ar-Rhanu Xchange outlets nationwide.

“For this year we are expecting the net profit to be better than last year,” Ismail said.

On its new managing director, Ismail expected the announcement to be made on April 1.

Bank Rakyat was established in 1954 and it is an agency under the Domestic Trade, Co-operatives and Consumerism Ministry.

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