Bank Rakyat records higher profit before tax and zakat of RM1.76 bln in FY23

KUALA LUMPUR: Bank Rakyat Group has recorded a higher profit before tax and zakat (PBTZ) of RM1.76 billion for the financial year ended Dec 31, 2023 (FY2023), an increase of 3.80 per cent compared with RM1.70 billion a year ago.

In a statement yesterday, the group attributed the higher profit to strong fundamentals and its focus on core activities despite the uncertain global economic outlook and challenging banking environment.

“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,” it said.

The group’s core income surged by 12.90 per cent to RM6.67 billion against RM5.90 billion in the previous year, attributed to solid growth in gross financing balance of 3.82 per cent year-on-year across all business segments.

Bank Rakyat’s total assets grew by 1.16 per cent to RM118.69 billion versus RM117.33 billion a year ago, mainly driven by a solid growth in gross financing balance, offset by lower net investment position.

“Despite intense competition, the group continued to benefit from the diversification of portfolios, mainly from Home Financing-i, Vehicle Financingi and Business Financing-i,” it said.

As a result of the diversification, it said the group’s financing retail segment grew by 3.22 per cent to RM75.77 billion and the business segment posted a solid 16.57 per cent growth to RM8.18 billion.

“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 said.