KUALA LUMPUR (October 23): Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) posted a profit before zakat and tax of RM1.109 billion for its second quarter ended June 30, 2014 (2QFY14), up 0.22% from RM1.107 billion in the previous corresponding quarter.

In a statement, Bank Rakyat said the profit increase was mainly due to its lower expenditure of RM958.55 million, as compared to RM1.151 billion in the previous year.

For the six months to June 30 (1HFY14), the bank posted a net profit of RM961.91 million, up 5.13% on-year from RM914.97 million.

“This was fueled in large by a decrease in tax and zakat of RM44.50 million to RM147.97 million from RM192.46 million in the same period last year,” said the bank.

Meanwhile, its total assets increased 17.2% to RM86.534 billion, from RM84.699 billion in the second half of 2013, which was attributed to an increase in financing and advances of RM2.06 billion and additional investment securities holdings of RM1.36 billion.

Bank Rakyat’s gross financing and advances for 1HFY14 grew to RM60.40 billion from RM58.45 billion in 1HFY13, supported by personal financing-i growth and higher hire-purchase receivables.

“Bank Rakyat is confident of reaching the target set for 2014 following steady financing growth backed by positive projection for the banking sector,” it said.

The bank further said it expects its financing-i growth to go up to 6% in 2014.

On Sept 3, RAM Ratings had rated Bank Rakyat as AA2/Stable/P1.