KUALA LUMPUR: The largest Islamic cooperative bank in Malaysia, Bank Rakyat, posted RM890mil in pre-tax profit and zakat for the first half ended June 30, 2016. The bank said total operating revenue, including other income, rose by 5.8% or RM178mil year-on-year to RM3.24bil from RM3.06bil in the previous year.
“This was mainly driven by the pick-up in financing growth due to the bank’s aggressive marketing and promotional drives during the period,” it said in a statement on Tuesday.
Bank Rakyat said the good performance was in line with its half-year target for 2016, despite a more challenging environment locally and globally that has resulted in the industry’s slower financing growth and compressed margins. Its total assets grew by 7.0% year-on-year to RM96.73bil from RM90.39bil compared to the previous year.
Return on asset remained strong at 2.0%, higher than the industry average of 1.3%. Total deposits went up by 8.4% or RM5.89bil to RM76.13bil, compared to RM70.24bil in the previous year. Retail deposits remained strong at RM15.99bil which accounted for 21.0% of total deposits.
Shareholders’ fund increased by 9.6% or RM1.25bil to RM14.27bil. Bank Rakyat expects to see an improvement in its revenue momentum in the second half of the year with the increasing pace in its financing disbursement and deposit drives.
