BANK RAKYAT'S 9-MTH PRE-TAX PROFIT, ZAKAT JUMPS 4.0 PCT TO RM1.29 BLN
KUALA LUMPUR, Dec 6 -- Bank Rakyat Group’s profit before tax and zakat (tithe) for the first nine months ended Sept 30, 2019 rose 4.0 per cent to RM1.29 billion from RM1.24 billion in the same period last year.
Amidst weaker consumer sentiment in the economy, the higher profit was contributed by financing and treasury activities, coupled with more effective cost management procedures, the bank said in a statement.
"This, despite the reduction of Overnight Policy Rate (OPR) which marginally affected the net profit. The good performance resulted in a rise of return on shareholders’ fund of 10.0 per cent," it said.
Chairman Datuk Noripah Kamso said there has been a gradual uptrend in all of the group’s customer financing as the bank’s strategy of diversifying into non-personal financing, namely hire purchase financing, mortgages, pawn broking, as well as commercial loans contributed to the encouraging performance.
“As our profits grew, our retained profits have increased by RM1 billion which has been encouraging for the team and the board who have been focused on strengthening systems and processes, as well as governance in the group”, she added.
The group’s cost to income ratio (CIR) stands at a healthy rate of 35.9 per cent, which is significantly lower than the domestic banking industry’s average CIR of 45.0 per cent.
Meanwhile, asset quality remained resilient as the group’s gross impaired financing improved from 2.3 per cent to 2.0 per cent through close monitoring and tracking.
-- BERNAMA
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