Better first 9 months for Bank Rakyat

KUALA LUMPUR: The pre-tax profit and zakat for Bank Kerjasama Rakyat Malaysia (Bank Rakyat) for the first nine months ended last September 30 rose by 17 per cent to RM1.5 billion from the corresponding period last year.

In a statement Monday, the bank said the good performance was achieved following the increase in financing-based income, in line with the growth in financing balance as well as the strengthening of asset quality.

Its net profit increased by 20.3 per cent to RM1.2 billion from RM1 billion previously.

Gross income increased by 18.1 per cent to RM4.06 billion from RM3.44 billion while net income after profit distribution to depositors grew by 9.6 per cent to RM2.69 billion from RM2.45 billion.

Total assets grew by 22.7 per cent to RM71.8 billion for the first nine months of 2111 from RM58.52 billion in the previous corresponding year.

Return on assets continued to strengthen at three per cent as at September 2011. During the period, Bank Rakyat recorded a net financing balance of RM48.15 billion, up 9.7 per cent.

The bank said consumer financing remained as the main focus of its business which contributed 91.2 per cent of total financing for the first nine months of 2011.

In terms of financing portfolio, personal financing was the biggest contributor at 85 per cent of total consumer financing.

Bank Rakyat's assets quality improved with a gross impaired financing ratio of 2.9 per cent as at the end-September 2011 compared with 3.9 per cent previously.

The financing loss coverage ratio remained high at 111.1 per cent while total deposit from consumers increased by 29.4 per cent to RM58.82 billion.

Source: MOLE