Bank Rakyat 2Q profit up marginally to RM1.1b

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

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

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

“This was fuelled in large [part] 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.

Its total assets increased 17.2% to RM86.534 billion, from RM84.699 billion in 2HFY13, 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 RM60.4 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 projections 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 Rating Services Bhd rated Bank Rakyat as AA2/Stable/P1.

 

This article first appeared in The Edge Financial Daily, on October 24, 2014.