KUALA LUMPUR (March 30): Bank Rakyat recorded a higher profit before tax and zakat of RM1.70 billion for the financial year ended Dec 31, 2022 (FY2022), compared with RM1.63 billion for the previous year.

Acting chairman Datuk Mohd Irwan Mubarak said the increase in profit was driven by the bank’s strong fundamentals, and its focus on core activities, despite the economic uncertainties post-pandemic. 

"The financial performance in FY2022 was also supported by the group’s financing and investment activities.

"Besides that, adequate provisioning during the year, in line with industry trends, also boosted the group’s performance,” he said during the announcement of the group’s financial performance and dividends for FY2022 on Thursday (March 30).

Also present was Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick. 

The group’s core operating income rose 3.42% to RM5.90 billion, from RM5.71 billion previously, as a result of stronger financing growth in both the retail and business financing segments.

Bank Rakyat also announced a dividend of 15%, with a payout totalling RM426.77 million, with payment beginning from Thursday.

The group’s better performance was further supported by higher fee-based income and collection from charge-off financing recovery, which improved by 24.10% to RM440.79 million, from RM355.19 million previously.

The group demonstrated discipline and efficiency in cost management, which were reflected in its cost-to-income ratio of 39.79%, which was lower than the industry average of 44.20%.

The group’s total assets grew 1.98% or RM2.27 billion to RM117.33 billion, compared with RM115.06 billion in the preceding financial year.

Mohd Irwan said the continuous growth momentum was mainly driven by positive traction in gross financing, and supported by net growth in treasury assets, corresponding with the group’s strategy throughout the year.

Meanwhile, the return on assets improved to 1.45% from 1.40%, in tandem with the industry trend.

The group’s current account savings account (Casa) increased by 2.84% to RM9.49 billion, from RM9.23 billion previously, thanks to aggressive cash management activities as well as continuous promotions in FY2022.

The Casa ratio remained stable at 11.14%, and was aligned with the group’s five-year strategic plan.

The group’s shareholders' funds increased 4.15% or RM0.89 billion to RM22.55 billion, compared with RM21.66 billion in the preceding year, contributed by the group’s net profit carried forward during the year.

Meanwhile, Ewon said Bank Rakyat would continue to support its annual mandate for the cooperative ecosystem by contributing 2% of its profit before tax and zakat amounting to RM33.57 million to the Cooperative Education Trust Fund Group. 

Another 1% amounting to RM16.78 million will be contributed to the Cooperative Development Trust Fund, he added.