Bank Rakyat 9M PBTZ up 4% to RM1.29b

  • Banking
  • Monday, 09 Dec 2019

Bank Rakyat Group posted  profit before taxation and zakat (PBTZ) of RM867.65mil in the first half ended June 30, 2019 from RM735.46mil a year ago.

KUALA LUMPUR: Bank Rakyat Group's profit before tax and zakat (PBTZ) for the nine months ended Sept 30,2019 rose by 4% to RM1.29bil, underpinned by financing and treasury activities.

It announced last Friday the PBTZ was higher than the RM1.24bil in the previous corresponding period amidst weaker consumer sentiment in the economy.

"The higher profit was contributed by financing and treasury activities coupled with more effective cost management procedures, despite the reduction of Overnight Policy Rate (OPR) which marginally affected the net profits. The good performance resulted in a rise of return on shareholders’ fund (ROSF) of 10%," it said.

Bank Rakyat chairman Datuk Noripah Kamso said there has been a gradual uptrend in all of the group’s customer financing as the bank’s strategy of diversifying into non-personal financing.

They were hire purchase financing (HP), mortgages, pawn broking as well as commercial loans contributed to the encouraging performance.

“As our profits grew, our retained profits have increased by RM1bil which has been encouraging for the team and the board who have been focused on strengthening systems and processes, as well as governance in the Group”, she added.

Its group’s cost to income ratio (CIR) was at a healthy rate of 35.9%, which was significantly lower than the domestic banking industry’s average CIR of 45.0%.

Asset quality remained resilient as the group’s gross impaired financing improved from 2.3% to 2.0% through close monitoring and tracking.

"The group is earnest on becoming a sustainable bank and improving its position as the most profitable development financial institutions, as well as the second largest Islamic Bank in Malaysia,"Noripah said.

Bank Rakyat is the third largest Islamic institution, sixth by revenue, profit and asset size globally and the eighth and fastest growing Islamic finance institution in Far East Asia.

On the business front, Noripah said that the effects of BR25 i.e. its five-year strategic plan launched in August 2019, could be seen next year.

The banking group was incorporating the United Nation’s Sustainable Development Goals (SDGs) throughout its value chain.

It expects to record operational optimisation and improvements in its 2020 announcements and onwards.

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