Bank Rakyat's 1H net profit jumps to RM915m
Bank Rakyat has recorded a net profit of RM915 million in the first half of this year ended June 30, a 10.5 per cent increase from RM828.3 million from the same period last year.
The bank said its profit before tax and zakat (tithe) also increased by five per cent to RM1.11 billion from RM1.06 billion in the same period last year.
"The higher profits were attributable to income from financing and fee-based activities. The bank's gross financing balance increased by 9.9 per cent or RM5.27 billion to RM58.45 billion.
"The gross consumer financing increased by 10.7 per cent or RM5.02 billion to RM52.06 billion compared to RM47.05 billion last year," it said in a statement.
The bank's total asset grew by 9.3 per cent year-on-year to RM84.70 billion from RM77.5 billion in the previous year. This was driven by the growth in financing to customers and its returns on assets remained strong at 2.9 per cent.
"The asset quality for the first half remained sustainable with gross impaired financing ratio reduced to 2.4 per cent from 2.9 per cent last year and the financing loss coverage ratio remain high at 130.2 per cent more than 109.2 per cent last year," Bank Rakyat said.
The bank also saw growth in deposits by 7.2 per cent to RM67.94 billion in June this year compared to RM63.38 billion, with the retail deposits accounting for 13.6 per cent of the total deposits compared to 10.6 per cent last year.
Meanwhile, shareholders' fund rose by 14 per cent or RM1.30 billion to RM10.59 billion from RM9.29 billion in the same period last year due to an increase in net profit for the current year.
The bank's first half risk weighted capital ratio also continued to be high at 15.5 per cent whilst core capital ratio stood at 15.2 per cent.-- Bernama