Bank Rakyat pre-tax profit up 10.8%

Bank Kerjasama Rakyat registered a 10.8 percent increase in pre-tax profit to US$563 million for the financial year
ended Dec 31, 2010 from US$507.8 million the previous year.

The record profit was achieved on the back of sustained increase in income, efficient cost management and superior asset quality whilst maintaining prudent banking practices, according to Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

Bank Rakyat's gross income rose by 24.3 percent to RM4.70 billion from RM3.78 billion while net income after profit distribution to depositors grew by 16.7 percent to US$999 million from US$855 million previously.

"The expansion would be slower as we are not expanding too much on retail banking especially in personal financing compared to the big leap we undertook last year, Bank Rakyat Managing director Datuk Kamaruzaman Che Mat was quoted by a Benama report. "The targeted 10 percent will be sufficient to have a steady growth and profit," he added.

He said that for this year, Bank Rakyat was aiming for a higher increase in fee-based income and focusing on its core banking business and wealth management to drive the targeted growth.