KUALA LUMPUR: Bank Rakyat has announced 16 per cent dividend for its account holders, the highest since 2012, representing RM480 million in total payout for the financial year ended December 31, 2017.
The dividend payout is based on the cooperative bank's pre-tax profit and zakat of RM2.05 billion recorded in the financial year under review, which increased 17.8 percent as compared to RM1.74 billion recorded in the previous year.
Net profit of the cooperative bank for the financial year also increased 17.2 per cent to RM1.36 billion, compared to RM1.16 billion previously.
Total deposits increased 6.9 per cent to RM83.24 billion in 2017, compared to RM77.90 billion previously.
The bank’s dividend in 2016 was 15 per cent.
Bank Rakyat chairman Tan Sri Shukry Mohd Salleh said the outstanding performance was the result of higher revenue of RM6.34 billion recorded for the year, an increase of 5.7 per cent compared to RM6 billion previously.
The positive earning was driven by higher contributions from financing and investment activities as well as manageable operating costs and funding provisions.
"Overall, the group has managed to maintain its position as the largest cooperative bank in terms of profits and as the second largest Islamic financial institution in Malaysia in terms of size," he said during Bank Rakyat's financial performance announcement here yesterday.
Also present were Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin and Bank Rakyat managing director Datuk Zulkiflee Abbas Abdul Hamid.
Shukry said total revenue, including other operating income for the group, rose 5.4 per cent to RM7.02 billion, compared to RM6.66 billion previously, of which financing income remains the major contributor at RM5.11 billion.
"Investment income increased by 14.7 per cent to RM1.25 billion due to the prudent financial asset management with a focus on low risk of stable income.
"The Group also benefited from the revaluation of real estate investments of RM128.61 million," he said.
The group's total assets rose by 6.3 per cent or RM6.23 billion to RM105.45 billion, compared to RM99.22 billion previously, driven by strong growth in treasury assets of 16.3 per cent or RM4.30 billion and growth in financing activities of RM1.45 billion.
"Return on assets (ROAs) remained high at two per cent from 1.8 per cent previously, exceeding the domestic banking industry ROA at 1.6 per cent," he said.
On gross financing, he said Bank Rakyat posted an increase of 2.1 per cent to RM70.63 billion, compared to RM69.18 billion previously.
"Growth in financing is driven by the growth in the retail and corporate banking segments, particularly the financing of residential properties, vehicles and businesses to cooperatives," he said.
At the same event, Bank Rakyat also announced the mandate entrusted to assist the cooperative sector by contributing two percent of the pre-tax profit and zakat amounting to RM39.97 million to the Co-operative Education Trust Fund.
It also contributes another one percent, which is equivalent to RM19.98 million, to the Cooperative Development Provident Fund. This brings its total contribution in 2017 to RM59.95 million.