KUALA LUMPUR: Bank Rakyat, the largest Islamic cooperative movement in Malaysia, declared a cash dividend of 13 per cent, amounting to RM385 million, for the financial year ended Dec 31, 2015 against 15 per cent declared for 2014.
The bank recorded a profit before tax and zakat (tithe) of RM2.01 billion against RM2.19 billion registered in 2014. In announcing the bank’s financial results, Chairman General Tan Sri Datuk Seri Abdul Aziz Zainal said the dividend was declared on the back of a stronger revenue of RM6.43 billion chalked up last year against RM6.06 billion reaped in 2014.
The dividends will be paid members, beginning tomorrow.
“The dividend declared for 2015 is lower than the previous year’s 15 per cent, but 13 per cent is considered high in view of the current economic condition.
“Yet, we will strive to improve our dividend payout to between 13 and 16 per cent, going forward,” Abdul Aziz told reporters here today.
The bank contributed two per cent or RM39.2 million of its profits before tax and zakat to the Co-operative Education Trust Fund and one per cent or RM19.6 million to the Co-operative Development Provident Fund.
“We hope the total contribution for 2015, amounting to RM58.80 million, will help the cooperative sector in the country,” he said.
Abdul Aziz said Bank Rakyat’s gross financing balance, year-on-year, recorded an increase of 3.8 per cent or RM2.36 billion to RM64.46 billion despite stringent measures by the authorities to curb the growth of household debt.
“Consumer gross financing also increased by RM2.87 billion to RM59.58 billion compared with RM56.71 billion in 2014,” Abdul Aziz added.
Total deposits grew 3.6 per cent or RM2.46 billion to RM70.98 billion compared with RM68.52 billion registered in 2014 despites thinner liquidity in the economy.
Total assets grew 3.5 per cent, year-on-year, to RM92.40 billion compared with RM89.31 billion registered in 2014 in line with the slower economic growth.
Abdul Aziz described the bank’s performance as commendable in view of the challenging year arising from the impact of internal and external developments.
“Nonetheless, we managed to retain our position as the country’s largest Islamic cooperative bank and we are leading in Islamic financial institution in terms of profits,” he said.
-Bernama