Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour at the press conference on Monday. The central bank does not rely on government funds to support its day-to-day operations, but generates income, or in other words funds to operate, from investments of the country’s international reserves and the central bank’s other general operations. (Photo by Shahrin Yahya/The Edge)
KUALA LUMPUR (March 24): Bank Negara Malaysia (BNM) is set to pay a record RM5.25 billion dividend to the government this year, following a surge in net profit to RM13.16 billion for the financial year ended Dec 31, 2024 (FY2024) — the highest on record since 1997.
The figure was up 83.8% year-on-year from the RM7.16 billion net profit the central bank logged in FY2023, according to its annual report released on Monday.
On the back of the surge in profit, BNM said it will set aside RM5.25 billion to be paid as dividends to the government — up from RM2.85 billion in 2023. The dividend payment is also at a record high, according to the central bank’s publicly available records.
The rise in earnings was attributed to a 70.8% rise in total income to RM14.98 billion from RM8.77 billion in FY2023, underpinned by stronger investment returns of its international reserves and portfolio activities in the foreign exchange and global securities market.
BNM does not rely on government funds to support its day-to-day operations, but generates income or funds to operate from investments of the country’s international reserves and the central bank’s other general operations.
Beyond the RM5.25 billion dividend to the government, the remaining RM7.91 billion in net profit will be transferred to the central bank’s risk reserve, which stood at RM147.9 billion as at end-2024, versus RM151.25 billion at end-2023.
“As our international reserves are in foreign currency, building sufficient financial buffers is important to cushion against future financial market volatility and shocks as well as managing the risk of exchange rate fluctuations in an uncertain global landscape,” BNM explained.
Total assets edged down 1.6% to RM621.54 billion as at end-December 2024, compared with RM631.74 billion a year ago. International reserves continued to account for the bulk of the central bank’s assets at 84% in 2024, versus 82% a year earlier.
Liabilities in 2024 stood at RM431.47 billion — mainly of RM170.72 billion in currency in circulation and RM131.92 billion in deposits by financial institutions — down 2.9% from RM444.32 billion in 2023.
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