(From left) Bank Rakyat chief financial officer Amren Faisal Fadzil, Malaysia Cooperatives Commission (SKM) chairman Leftenan Jeneral Datuk Ahmad Norihan Jalal (B), Bank Rakyat chairman Datuk Mohd Irwan Mohd Mubarak, Bank Rakyat CEO Ahmad Shahril Mohd Shariff and deputy CEO Nor Haimee Zakaria at Bank Rakyat's Financial Results and Dividend Press Briefing for the financial year ended Dec 31, 2024 (FY24). — AZLINA ABDULLAH/The Star
KUALA LUMPUR: Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has recorded a profit before tax and zakat of RM1.82bil for financial year ended Dec 31, 2024 (FY24), reflecting a 3.15% year-on-year (y-o-y) increase compared to RM1.76bil in FY23.
In line with the stronger performance, the bank declared a 17% dividend for FY24, amounting to a total payout of RM486.32mil to 773,859 members.
This payout is approaching the 12-year peak, nearing the 18% dividend mark reached in 2012.
Bank Rakyat chairman Datuk Mohd Irwan Mohd Mubarak said FY24’s commendable performance was driven by the lender’s strong fundamentals and a focus on core activities, further supported by an improved domestic economic condition.
He stated that the bank “will continue to remain vigilant amid uncertainty in the global economic outlook and a challenging banking environment”.
“This achievement is also supported by our continuous attractive offerings in the consumer financing segment, all while maintaining focus on non-fund-based income, embracing digitalisation by tapping into the mass affluent market and improving the overall asset quality,” he shared at Bank Rakyat’s FY24 press briefing yesterday.
The bank’s newly appointed chief executive officer, Ahmad Shahril Mohd Shariff, attributed the stronger y-o-y FY24 performance to five key elements, including the lender’s stronger income, a profit increase of 3.15%, a sustained asset growth of 3.56% and a lower gross impairment financing ratio of 1.93%.
“We have also been satisfactory in terms of fulfilling the Entrepreneurs and Cooperative Development Ministry’s developmental mandates – namely financial inclusion as well as financial education,” he added.
Ahmad Shahri noted that the group had recorded a stable risk-weighted capital ratio of 26.63%, a higher net stable funding ratio of 111% and a financing loss reserve ratio of 150%, all of which outperformed the industry average.
He said the higher declared dividend was driven not only by stronger profits for the year, but also by the bank’s prudent funding strategy in response to the rising cost of funds across the banking industry.
Looking ahead, he acknowledged that 2025 is expected to bring economic headwinds, although he remains optimistic, citing a projected gross domestic product growth for Malaysia of 4.5% to 5.5%, driven by household spending and private investments.
“This is an area that I think the group can capitalise on and look for new business opportunities. That said, we forecast 2025 to be challenging. But we remain positive in terms of sustaining the growth trajectory of the bank,” he quipped.
Additionally, to maintain its competitive edge, Bank Rakyat will focus on its long-term strategic plan, which will integrate the necessary characteristics to shape the “Bank Rakyat of Tomorrow”.
As the bank is eight months away from completing its five-year BR25 strategic blueprint, Ahmad Shahril said Bank Rakyat is on track and confident in achieving the remaining targets by the end of the year.
He emphasised that the group will continue to closely monitor the progress and milestones in achieving the high-impact strategies it plans to deliver.
“Nevertheless, there is always continuity of these strategies that we will bring on board to BR30. It is not the end of our efforts to drive the group up and instead, BR30 will be a continuation of what we have done under BR25,” he added.
