KUALA LUMPUR: Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has flagged 2025 as a challenging year, citing global economic uncertainties and escalating geopolitical tensions, particularly from the ongoing trade war among major economies. Despite this, the bank remains optimistic about sustaining its growth trajectory through strategic diversification and tapping into new market segments.
Bank Rakyat’s newly appointed CEO, Ahmad Shahril Mohd Shariff, explained that the bank is focused on expanding its lending activities to support household spending and exploring new market segments. The bank’s personal financing segment continues to be a major contributor to its earnings, but it is also looking to diversify into sectors such as water utility financing, logistics, and tax-related financing. These non-personal financing areas saw growth of 10.6% in FY2024, outpacing the overall market.
The bank also plans to increase its focus on the mass affluent and non-Bumiputera markets, which it sees as having significant untapped potential. “We are not abandoning personal financing — it remains our bread and butter — but we are creating a bigger pie by also focusing on new engines of growth,” said Shahril.
In line with its strong financial performance, Bank Rakyat announced a flat dividend payout of 17% for FY2024, maintaining the same payout ratio as the previous year. This translates to a total distribution of RM486.32 million, up from RM426.8 million in FY2023. Shahril attributed this stable dividend to the bank’s sustained profitability and robust financial resilience.
For FY2024, Bank Rakyat reported a 3.15% year-on-year increase in profit before tax and zakat, reaching RM1.82 billion, up from RM1.76 billion in FY2023. This growth was driven by a continued focus on core business activities, improving asset quality, and a favourable domestic economic environment. The bank’s gross income rose slightly by 0.36%, in line with its five-year BR25 strategic plan. Additionally, deposits grew by 5.5% to RM10.75 billion, supported by efforts to grow savings and investment accounts.
Chairman Datuk Mohd Irwan Mohd Mubarak highlighted the bank’s resilience, attributing its strong performance to prudent risk management, cost discipline, and targeted growth in consumer financing. The bank’s asset quality also improved, with the non-performing financing ratio declining to 1.93% from 2.02% in the previous year, and its cost-to-income ratio stood at 46.89%, below the industry average.
Despite the anticipated challenges in 2025, Bank Rakyat is confident that its strategic initiatives, including digitalisation and focus on higher-income customer segments, will continue to drive its growth and financial resilience.
