Bank Rakyat declares 18 per cent dividend, totalling RM534.7 million for FY2025

KUALA LUMPUR - Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has announced a dividend payment of 18 per cent, amounting to RM534.7 million for the financial year ended Dec 31, 2025 (FY 2025).

This dividend will benefit a total of 783,324 members, who will start receiving payments from today.

Entrepreneur and Cooperatives Development Minister Steven Sim Chee Keong said that the payout is the highest in the past 10 years.

"This encouraging financial performance allows Bank Rakyat to optimise capital and maintain high dividend payments as a token of appreciation to all members and stakeholders of the bank for their continued support," he told the media after announcing the dividend.

Commenting on the bank's financial performance, chief executive officer Ahmad Shahril Mohd Shariff said Bank Rakyat recorded a profit before tax and zakat of RM1.9 billion for FY 2025, with a year-on-year increase of 4.2 per cent (RM75.8 million) compared to RM1.8 billion in the previous year.

"This higher profit before tax and zakat was achieved through the group's strong foundation and focus on core activities, supported by improved domestic economic conditions, while the group remains vigilant in facing the uncertain global economic outlook and challenging banking environment," said Ahmad Shahril.

He explained that this strong performance was driven by growth in total assets, which increased by 6.6 per cent to RM131.0 billion, supported by attractive offerings in the retail financing segment, a stronger emphasis on non-fund-based income, accelerated digitisation to penetrate the high- and middle-income segment, and an overall improvement in asset quality.

The group's core revenue increased by two per cent to RM6.8 billion, driven by strong growth in gross financing balance of 8.6 per cent to RM93.3 billion, exceeding the industry average.

Ahmad Shahril noted that with the successful implementation of Bank Rakyat's 2025 strategic plan, the bank has fully realised the benefits from the diversification of its portfolio, particularly in the business banking segment and secured financing segments such as Housing Financing-i, Vehicle Financing-i, and Pawnbroking-i.

Furthermore, the group's deposit strategy and efforts to grow low-cost deposits have contributed to a 15.2 per cent increase in Current-i Accounts, Savings-i Accounts, and Investment-i Accounts (CASAIA) to RM12.4 billion, strengthening the CASAIA ratio by 129 basis points to 14.4 per cent.

The group's sustainable performance is also supported by a 30.8 per cent or RM221.0 million increase in other operating income to RM938.4 million, reflecting continuous efforts to diversify revenue sources. - BERNAMA