Bank Rakyat recorded a profit before tax and zakat of RM1.9 billion for the financial year ended 31 December 2025 (FY2025), representing a 4.2% or RM75.8 million year-on-year increase, compared to RM1.8 billion in the preceding year.
The group said the higher PBTZ was achieved through the Group’s strong fundamentals and focus on core activities, supported by improved domestic economic conditions, while the Group remained vigilant amid an uncertain global economic outlook and a challenging banking environment.
This performance was driven by strong growth in total assets, rose by 6.6% to RM131.0 billion, compelling offerings in the retail financing segment, a stronger focus on non- fund-based income, accelerated digitalization to capture the mass affluent market, as well as improvements in overall asset quality.
The Group’s core income increased by 2.0% to RM6.8 billion, attributed by strong growth in gross financing balance of 8.6% to RM93.3 billion, outperforming the industry average. With the successful completion of BR25, the Group has unlocked the full benefits of its portfolio diversification, notably in business banking segments and secured financing segments such as Home Financing-i, Vehicle Financing-i and Pawn Broking-i.
Further, the Group’s deposit-led strategy and targeted efforts in low-cost deposit acquisition resulted in an increase in Current Accounts-i, Savings Accounts-i and Investment Accounts-i (CASAIA) by 15.2% to RM12.4 billion, boosting the CASAIA ratio by 129 basis point to 14.4%. The Group’s robust performance was further supported by higher other operating income by 30.8% or RM221.0 million to RM938.4 million, benefiting from higher financing growth and expanded non-fund-based income.
Additionally, the Group continued to uphold prudent risk management culture and stringent credit underwriting process leading to improved gross impaired financing ratio from 1.9% to 1.8%. The Group demonstrated discipline and efficiency in cost management, which was reflected in its healthy cost-to-income ratio of 47.8%. The Group’s capital position remained robust with Risk-Weighted Capital Ratio and Core Capital Ratio stood strong at 25.6% and 24.2% respectively, well above the minimum regulatory requirements. The Group’s total assets rose to RM131.0 billion, supported by strong balance sheet growth.
Meanwhile, the Minister of Entrepreneur and Cooperatives Development, Steven Sim Chee Keong, announced an 18% dividend for Bank Rakyat’s FY2025, with a total payout amounting to RM534.7 million, the highest since the past 10 years. “The commendable financial performance has enabled Bank Rakyat to optimise its capital position and sustain a high dividend payout, rewarding its members and stakeholders for their continued support,” he added. The dividend payment will commence on 16 April 2026, benefiting a total of 783,324 members.
He added that the Group continues to fulfil its mandated role in supporting the cooperative ecosystem by contributing 2% of its profit before taxation and zakat, amounting to RM38.0 million, to the Cooperative Education Trust Fund, and 1%, or RM19.0 million, to the Cooperative Development Provident Fund. The total contribution to these cooperative funds for 2025 amounted to RM57.0 million, compared to RM54.7 million in the preceding year.
Building on this strong foundation, a comprehensive Five-Year Strategic Plan for 2026– 2030, known as LEAD30—representing Lean, Expansionary, Agile and Dynamic—has been developed to drive the Bank’s strategic aspirations and long-term impact.
Under LEAD30, Bank Rakyat aims to drive sustainable and inclusive growth through to 2030 by accelerating financing asset expansion and strengthening its position among Malaysia’s leading Islamic banks. The strategy focuses on enhancing profitability, growing fee-based income streams, and sustaining market leadership in key segments such as Personal Financing-i and Ar-Rahnu.
