Bank Rakyat declares 16% dividend payout

  • Banking
  • Tuesday, 27 Mar 2018

KUALA LUMPUR: Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has declared a dividend of 16% for financial year ended Dec 31, 2017 compared with 15% in the previous year. 

In announcing the bank's 2017 financial results, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin said this would involve a total payout amounting to RM480mil.

He said 2%  or RM39.97mil of Bank Rakyat's profit before taxation and zakat would be chanelled to the Co-operative Trust Fund, while another 1% or RM19.98mil to the Co-operative Development Provident Fund.

Overall, the improved performance was a result of increased Bank Rakyat's profit before taxation and zakat of 17.8% to RM2.05bil from RM1.74bil previously.

Meanwhile, revenue grew 5.7% to RM6.34bil from RM6bil previously, driven by growth in both financing and investment.

Group Managing Director and President Datuk Zulkiflee Abbas Abdul Hamid said financing growth rose 2.1% to RM70.63bil from RM69.18bil.

He attributed the growth in financing to retail and corporate banking segments, mainly mortgage, hire purchase and business financing to cooperatives.

Cumulatively, residential and auto financing grew 25.1% to RM7.98bil compared with RM6.38bil previously.

Meanwhile, cooperative financing rose 7.7% to RM1.96bil from RM1.82bil.

Personal financing, meantime, rose marginally by 0.6% or RM340mil in line with the bank's resolve to reduce dependency on the segment.

"For 2018, we expects to maintain similar financing growth with focus on corporate segment, mainly SME segment. We are also seriously streamlining our assets and liabilities.

"We will likely be able to record dividend between 15%-16% this year," he told reporters at the announcement of the bank's financial results here today.

On its non-performing loan (NPL), he said it grew slightly to 2.2% from 2% previously.

Despite this, he said the rate was still manageable with most of the segment's NPL stood below 1%.

As for assets, it recorded a growth of 6.3% to RM105.45bil compared with RM99.22bil a year before.

This was mainly driven by growth in treasury assets of 16.3% or RM4.3bil and the expansion in financing activities of 2.1% or RM1.45bil. 

Return on Assets (ROA) also rose to 2% from 1.8% previously, outpacing industry average of 1.6%.

Overall, deposits grew 6.9% to RM83.24bil in 2017 from RM77.9bil previously.

Current account and savings account balance improved at 21.6% or RM890mil for 2017. - Bernama




Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!


Next In Business News

Macau casino giants win licence renewals, Malaysia's Genting loses bid
Oil prices fall 2% as Chinese demand worries linger
China investors identify trigger points to buy
More than meets the eye in courier industry
Energy security is global priority in 2023
Asia’s richest man makes US$5bil bet to silence debt-obsessed critics
The crypto bubble of the worst kind
ESG in real estate gains traction
Poll: UK house price rally to end next year but no big crash seen
The rise and fall of FTX

Others Also Read