Dividend could go higher for FY22 as the country moves to the endemic phase
by ANIS HAZIM / Pic by BERNAMA
BANK Kerjasama Rakyat Malaysia Bhd posted a profit before tax and zakat of RM1.63 billion and a net profit of RM1.86 billion for the financial year ended Dec 31, 2021 (FY21).
The bank announced a dividend distribution of 15%, amounting to RM429.5 million for the year which will be paid starting yesterday.
“Bank Rakyat still maintains doubledigit dividend rate performance for 23 years,” said Entrepreneur and Cooperative Development Minister Tan Sri Noh Omar at the Bank Rakyat’s FY21 results announcement yesterday.
Noh expects the dividend could go higher for FY22 as the country moves to the endemic phase.
“We have planned every year based on our key performance indicator, so hopefully we will get a higher dividend this year. We once (in FY11) paid 20% dividend at the most,” he noted.
The co-operative bank reported a 3% growth in total assets to RM115.06 billion in 2021 from RM111.75 billion in 2020 driven by 1.6% growth in financing balance and 7% solid growth in treasury assets in line with its strategy throughout the year.
The bank’s return on assets improved to 1.4% in line with the industry trend.
Bank Rakyat’s total deposits for the year rose 1.1% to RM86.52 billion from RM85.58 billion in 2020.
For FY21, its risk-weighted capital ratio and core capital ratio after the proposed final dividend remained strong at 24.22% versus 21.81% in FY20.
“This is well above the minimum regulatory requirements and industry average, thus making Bank Rakyat one of the strongest financial institutions in terms of capital position,” the bank stated.
Nevertheless, Bank Rakyat will continue to focus on its mandated role as well as new growth areas to create long-term value for members.
Bank Rakyat’s 2025 strategic plan is currently in the execution phase in which several programmes have already been implemented this year.
This includes the establishment of the 10 small and medium enterprises and cooperatives business centres nationwide including in Sabah and Sarawak.