BANK RAKYAT POSTS NET PROFIT OF RM1.15 BILLION IN 2019

BANK RAKYAT POSTS NET PROFIT OF RM1.15 BILLION IN 2019

December 2019 and a profit before tax and zakat of RM1.79 billion, amid a challenging year.

 

The steady performance was achieved through a higher year-on-year net income of 3.26 per cent due to growth in core operating income and a lower year-on-year funding cost of 1.62 per cent following the cut in the Overnight Policy Rate (OPR) in the second half of 2019.

 

Chief executive officer, Datuk Rosman Mohamed said the good performance was also achieved via strong fundamentals and being focused on core activities as well as on-going initiatives on increasing current accounts and savings account (CASA).

 

He said the group’s total assets grew 2.6 per cent to RM109.62 billion in 2019, with year-on-year growth mainly contributed by financing and advances of 2.8 per cent to RM70.97 billion.

 

Return on Assets (ROA) during the year remained healthy, at 1.7 per cent, well above the domestic banking industry of 1.6 per cent.

 

In 2019, its gross financing balance grew to RM72.42 billion, despite the intense competition, benefitting the diversification of portfolios, mainly from home, car and business financing.

 

Bank Rakyat financing grew 12.3 per cent to RM6.65 billion compared to RM5.92 billion previously, while car financing up 11.2 per cent to RM3.08 billion.

 

In addition, business financing, especially the cooperative segment was nine per cent higher at RM2.42 billion from RM2.22 billion previously.

 

“As part of diversification on other portfolios, personal financing balance stood at RM55.53 billion, increase moderately by 1.2 per cent or RM0.65 billion, in line with the group’s long-term strategy to reduce overall dependency on personal financing,” he said.

 

Rosman said the group’s deposits stood at RM83.83 billion in 2019 from RM82.74 billion previously while CASA balances improved significantly at 15.1 per cent to RM6.60 billion for the year.

 

“Bank Rakyat will continue to focus on internal restructuring, especially to harness the potential of business exploration and operations to create long-term value for shareholders.

 

“Next, Bank Rakyat will implement six frameworks namely Digitalisation, Best Customer Experience, Human Capital, Small and Medium Enterprise Value Creation Center (SME), Sustainability and Shariah Leadership which will be key to realizing BR25 (Bank Rakyat 2025) aspirations, ” Rosman added.

 

Sumber: https://selangorjournal.my/2020/03/bank-rakyat-posts-net-profit-of-rm1-15-billion-in-2019/?utm_source=dlvr.it&utm_medium=twitter

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