Bank Rakyat Group announced a commendable performance for financial year ended 2022. The Group recorded higher profit before tax and zakat (PBTZ) of RM1.70 billion as compared to RM1.63 billion in the previous year.
The higher PBTZ was achieved through the Group’s strong fundamentals and focus on core activities amid the economic uncertainties from the post-pandemic.
The financial year 2022 result was helped by the Group’s financing and investment activities, reflecting the strength and resilience that the Group has developed in recent years. In addition, the adequate provisioning during the year, in line with the industry trend has also boosted the Group’s performance.
The Group’s core operating income rose 3.42% to RM5.90 billion as compared to RM5.71 billion previously as a result of stronger financing growth both in Retail and Business financing segment coupled with the Overnight Policy Rate (OPR) movement.
The Group’s better performance was further supported by higher fee-based income and collection from charge-off financing recovery which improved by 24.10% to RM440.79 million from RM355.19 million previously.
The Group demonstrated discipline and efficiency in cost management, which were reflected in its healthy cost to income ratio of 39.79%, much lower than industry average of 44.20%.
The Group continued to be competitive and profitable during the year and remained one of the largest full-fledged Islamic financial institution in Malaysia.
Asset Growth
The Group’s total assets grew 1.98% or RM2.27 billion to RM117.33 billion, compared to RM115.06 billion in the preceding financial year. The continuous growth momentum was mainly driven by positive traction in gross financing and supported by net growth in treasury assets, corresponding with the Group’s strategy throughout the year.
Return on Assets (ROA) improved to 1.45% from 1.40% in line with the industry trend.
Stable Financing Balance
Gross financing balance grew 1.04% to RM80.44 billion from RM79.62 billion in the previous financial year. Despite intense competition post-pandemic, the Group continued to benefit from the diversification of portfolios, mainly from Home, Vehicle and Business Financing.
As a result of the diversification, the Group’s financing Retail segment grew by 0.10% to RM73.41 billion and Business segment posted solid growth of 14.52% to RM7.02 billion.
The Group’s assets quality remained sound with gross impaired financing ratio recorded at 1.98% as compared to 1.70% previously.
At the same time, Financing Loss Coverage ratio remained high at 192.51% as compared to 196.70% previously, well above the industry average of 98.20%.
Stable Deposit Balances
The Group’s CASA increased by 2.84% to RM9.49 billion as compared to RM9.23 billion previously resulted from the aggressive cash management activities as well as the continuous promotions throughout the year.
CASA ratio remained stable at 11.14% aligned with the Group’s 5 years strategic plan aspiration (BR25).
Strong Capital Position
The Group’s shareholders fund increased by 4.15% or RM0.89 billion to RM22.55 billion compared to RM21.66 billion in prior year contributed by the Group’s net profit carried forward during the year.
As at 31 December 2022, Risk-Weighted Capital Ratio and Core Capital Ratio after the proposed final dividend remained strong at 27.58% and 25.00% respectively, well above the minimum regulatory requirements and the industry average, positioning the Group as one of the strongest financial institutions in terms of capital position.
