KUALA LUMPUR: Bank Rakyat Group today announced a dividend distribution of 15 per cent, amounting to RM424.62 million for the financial year ended Dec 31, 2023 FY23).
The group posted a profit before tax and zakat (PBTZ) of RM1.76 billion for FY23 as compared to RM1.70 billion in the preceding year, an increase of 3.80 per cent.
The bank said the higher PBTZ was achieved through the group's strong fundamentals and focus on core activities to remain vigilant despite uncertain global economic outlook and challenging banking environment.
Despite continued net margin compression, Bank Rakyat said the group's unwavering commitment to remain agile and resilient has borne positive outcomes for financial year 2023.
It said the commendable performance was underpinned by the group's robust financing and investment activities, Current Account, Savings Account and Investment Account (CASAIA) solid growth, as well as adequate provisioning during the year which was in line with industry trends.
"The group's core income surged by 12.90 per cent to RM6.67 billion as compared to RM5.90 billion in the previous year, attributed by solid growth in gross financing balance of 3.82 per cent year over year (YoY) across all business segments," it said.
Meanwhile, Bank Rakyat said the group's better performance was further supported by higher fee-based and other income which improved by 31.58 per cent or RM139.21 million to RM580.00 million as compared to RM440.79 million in prior year.
It said the group demonstrated discipline and efficiency in cost management, which was reflected in its healthy cost to income ratio of 47.85 per cent, lower than the industry average of 48.30 per cent.
On the group's total assets, Bank Rakyat said the asset grew by 1.16 per cent or RM1.36 billion to RM118.69 billion, compared to RM117.33 billion in the preceding financial year.
The moderate growth was mainly driven by solid growth in gross financing balance, offset with lower net investment position by 3.71 per cent as part of a strategic move in portfolio management of treasury assets.
On prospects, Bank Rakyat said the group always remains optimistic in maintaining good growth performance and staying relevant every year, driven by the implementation of new approaches based on the business plan and long-term strategic plan.
The bank's main focus is on harnessing untapped potential in business and operations through digital transformation to create long-term value for members and customers, it added.