KUALA LUMPUR: Bank Rakyat’s profit before taxation and zakat increased 17.8 per cent to RM867.65 million in the first half ended June 30, 2019 from RM735.46 million previously.
The bank said this was despite the challenges on its net profit margin from the reduction of Overnight Policy Rate (OPR) as well as weak consumer sentiment.
On the business front, Bank Rakyat continued to perform well with improvement in core operating income.
“The higher profit was mainly contributed from financing and treasury activities, whilst containing its operating cost at the same time,” it said.
The bank said the commendable performance had translated to a return on shareholders’ fund (ROSF) of 10 per cent, among the highest in the industry.
During the period, it managed to sustain a low cost to income ratio (CIR) of 34.2 per cent, outpacing the domestic banking industry’s average CIR of 45.0 per cent.
“With strong fundamentals and focus towards becoming a sustainable bank, the group successfully retained its position as the most profitable co-operative bank, as well as the second largest Islamic financial institution in Malaysia,” it said.
Meanwhile, Bank Rakyat has allocated zakat contributions totaling RM23.45 million for the year ended December 31, 2018.
Of this, RM14.66 million was distributed to the state Islamic religious council and the balance RM8.79 million was for own distribution to the asnaf.
As at September 30, Bank Rakyat approved a zakat distribution of RM7.70 million for the asnaf.
A total of RM397,600.00 was allocated for subsistence and home construction for families identified to be asnaf fakir (extremely poor) and asnaf miskin (poor).
Bank Rakyat acting managing director Datuk Rosman Mohamed said it was committed to support the 3Ps namely People, Planet and Progress by integrating sustainability into its business strategy that is not only aimed for the profit but also social development.