Bank Rakyat profit higher at RM1.76b
Published on: Saturday, April 06, 2024
By: Mohd Izham Bin Hashim
The higher PBTZ was achieved through the Group’s strong fundamentals and focus on core activities to remain vigilant despite uncertain global economic outlook and challenging banking environment.
Kuala Lumpur: Bank Rakyat Group (the Group) announced another year of strong and commendable performance for financial year ended 2023.
The Group recorded higher profit before tax and zakat (PBTZ) of RM1.76 billion as compared to RM1.70 billion in the preceding year, an increase of 3.80pc or RM64.48 million.
ADVERTISEMENT
The higher PBTZ was achieved through the Group’s strong fundamentals and focus on core activities to remain vigilant despite uncertain global economic outlook and challenging banking environment.
Despite the continued net margin compression, the Group’s unwavering commitment to remain agile and resilient has borne positive outcomes in the financial year 2023.
The commendable performance was underpinned by the Group’s robust financing and investment activities, Current Account, Savings Account and Investment Account (CASAIA) solid growth, as well as adequate provisioning during the year which was in line with the industry trend.
The Group’s core income surged by 12.90pc to RM6.67 billion as compared to RM5.90 billion in the previous year, attributed by solid growth in gross financing balance of 3.82pc year over year (Y-o-Y) across all business segments.
ADVERTISEMENT
The Group’s better performance was further supported by higher fee-based and other income which improved by 31.58pc or RM139.21 million to RM580.00 million as compared to RM440.79 million in prior year.
The Group demonstrated discipline and efficiency in cost management, which was reflected in its healthy cost to income ratio of 47.85pc, lower than the industry average of 48.30pc.
ADVERTISEMENT
The Group continued to be competitive and profitable during the year and remained as one of the largest full-fledged Islamic financial institution in Malaysia.
The Group’s total assets grew by 1.16pc or RM1.36 billion to RM118.69 billion, compared to RM117.33 billion in the preceding financial year.
The moderate growth was mainly driven by solid growth in gross financing balance, offset with lower net investment position by 3.71pc as part of strategic move in portfolio management of treasury assets.
Gross financing balance sustained positive growth trajectory, expanding by 3.82pc to RM83.51 billion from RM80.44 billion in the previous financial year. Despite intense competition, the Group continued to benefit from the diversification of portfolios, mainly from Home Financing-i, Vehicle Financing-i and Business Financing-i.
As a result of the diversification, the Group’s financing retail segment grew by 3.22pc to RM75.77 billion and business segment posted solid growth of 16.57pc to RM8.18 billion.
The Group’s assets quality remained sound with gross impaired financing ratio recorded at 2.02pc with Financing Loss Coverage ratio remained high at 161.86pc, surpassing the industry average of 92.00pc.
The Group’s CASAIA increased by 6.80pc to RM10.19 billion as compared to RM9.49 billion in prior year resulted from the aggressive cash management activities as well as impactful promotional activities throughout the year.
CASAIA ratio recorded higher at 12.55pc as compared to 11.16pc in the previous year, aligned with the Group’s five years strategic plan aspiration (BR25).
The Group’s shareholders’ fund increased by 4.16pc or RM0.94 billion to RM23.49 billion compared to RM22.55 billion in prior year contributed by the Group’s net profit carried forward during the year.
As at 31 December 2023, Risk-Weighted Capital Ratio and Core Capital Ratio after the proposed final dividend remained strong at 24.91pc and 22.88pc respectively, well above the minimum regulatory requirements and the industry average, positioning the Group as one of the strongest financial institutions in terms of capital position.
The Group always remains optimistic in maintaining good growth performance and staying relevant every year, driven by the implementation of new approaches based on the business plan and long-term strategic plan.
The Bank’s main focus is on harnessing untapped potential in business and operations through digital transformation to create long-term value for members and customers.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
