Thursday, April 12, 2012

Bank Rakyat pays out 20pc dividend

Source From (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/20120327005839/Article/index_html

By Zurinna Raja Adam
Published: 2012/03/27

The payment will involve a cash dividend of 15 per cent or a total payout of RM330 million and bonus share dividend of 5
per cent amounting to RM105 million.

Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) yesterday
declared a 20 per cent dividend for its financial period ended December 31 2011, on the back of a record net profit.

The payment will involve a cash dividend of 15 per cent or a total payout of RM330 million and bonus share dividend of 5
per cent amounting to RM105 million.

This is the 13th year that the bank announced a 15 per cent cash dividend.

In 2008, Bank Rakyat gave out a 15 per cent cash dividend and another 5 per cent loyalty bonus. In 2007, the bank gave
out 20 per cent in cash dividend.

“We appreciate the support and hope to continue to reward
our members with high dividends,” Domestic Trade, Cooperatives
and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said when announcing the results yesterday.

Bank Rakyat posted its highest ever net profit for the financial year ended December 31, 2011 which was achieved as a result of the bank’s focus on growing its financing activities
despite challenges in the local banking industry.

The cooperative bank’s net profit grew 49.5 per cent to RM2 billion compared with RM1.34 billion in 2010. Last year, the bank’s gross income rose by 13.3 per cent or RM647.8 million to RM5.5 billion compared with RM4.86 billion in 2010.

Its non-performing loans stood at a manageable 2.8 per cent.
Profit before tax and tithe (zakat) grew 17.6 per cent to RM2.02 billion against RM1.72 billion before.

This year, Bank Rakyat aims to achieve RM2.1 billion in profit before tax, driven by personal loans and pawn broking
business.

Over time, Ismail Sabri said, the bank aims to increase its commercial financing activities and lessen its dependency on
personal loans which command some 90 per cent of the bank’s portfolio.

Bank Rakyat’s income from financing increased to RM4.46 billion in 2011 of which about RM4.07 billion were from consumer banking while commercial banking accounted for 8.6 per cent or some RM385.2 million of its total financing income.

Total assets grew by 17 per cent to RM72.48 billion during the year against RM62 billion before, in line with its strong growth in deposits throughout the year. Its return on assets remains high at 3 per cent during the year.

Shareholders fund increased by 40.3 per cent to RM8.35 billion compared with RM5.95 billion previously. The growth is attributed to increased net profit as well as increased paid-up capital from the issuance of new shares.

The bank has some 926,578 members of which 924,941 are individuals and 1,637 cooperatives.

This year, Ismail Sabri said the bank will be opening nine new branches and 10 Islamic pawn broking franchise outlets, Ar-Rahnu X'change, to widen its market reach.

Currently, Ar-Rahnu services are available at 135 branches and there are 38 Ar-Rahnu X'change outlets nationwide.

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