Bank Rakyat posts record $660M profit, declares record dividend

After posting a record pre-tax profit of RM 2.02 billion or US$600.7 million, Bank Rakyat declared a record dividend of US$122.29 million.

The bank's 2011 pre-tax profit was 17.6 per cent higher from its 2010 pre-tax profit for 2010 was RM1.72 billion.

This is the bank's highest pre-tax profit since its inception in 1954. 

"The record pre-tax profit was achieved from the bank's focus on financing, mainly personal loans, besides quality asset appreciation despite challenges in the domestic banking industry," says Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

The 2011 financial year dividend declared was 20 percent, amounting to RM435 million US$122.29 million. The bank also declared 20 percent dividend out of a smaller profit in 2008.

The cooperative bank said 15 per cent or a cumulative RM330 million will be paid in cash and the remaining five per cent totalling RM105 million will be offered in the form of bonus share.

Ismail Sabri said the bank's gross revenue rose by 13.3 per cent to RM5.5 billion from RM4.86 billion in 2010, with personal loans remaining as the main profit contributor besides the marked growth in the Ar-Rahnu Islamic pawnbroking business and investments.

On this year's outlook, Ismail Sabri said Bank Rakyat aims to achieve RM2.1 billion in pre-tax profit, driven by personal loans and Ar-Rahnu revenue.

Going forward, the minister said Bank Rakyat planned to open nine branches, one each in Pahang, Johor, Selangor, Kelantan and Negeri Sembilan and two in Terengganu and Sabah, respectively.

He also said the bank intends to open 10 Islamic panwnbroking franchise outlets, Ar-Rahnu X'change, this year nationwide.

For the source of this story, click here.