KUALA LUMPUR (March 31): Bank Negara Malaysia (BNM) has declared a dividend of RM5 billion to the government in 2025, following a record payout in 2024, as income fell 5.7%, according to its annual report released on Tuesday.
This marks the second consecutive year of paying a RM5 billion dividend to the government to support its coffers, following a record RM5.25 billion dividend paid in 2024. Prior to that, dividends last reached RM5 billion in 2021.
BNM recorded a net profit after tax of RM12.45 billion for the financial year ended Dec 31, 2025 (FY2025), from RM13.16 billion posted in FY2024.
This was on the back of a lower total income of RM14.35 billion in FY2025, net of costs associated with managing the reserves portfolio and monetary operations, compared with RM14.98 billion in FY2024.
Beyond the RM5 billion dividend to the government, the remaining RM7.45 billion in net profit will be transferred to the central bank’s risk reserve, which stood at RM155.31 billion at end-2025, versus RM147.90 billion at end-2024.
The risk reserve is a financial buffer comprising cumulative transfers of net profits, unrealised gains or losses on translation of foreign currency assets and liabilities and fair value changes from securities carried at fair value.
“As 85% of our assets are denominated in foreign currency, it is important for us to build adequate risk reserves. This allows us to cushion against financial market volatility and exchange rate fluctuations in the foreign currency assets,” it said.
International reserves continued to account for the bulk of the central bank’s assets at RM509.79 billion, compared to 84% (RM520.13 billion) in 2024.
BNM does not rely on funds from the government to support its day-to-day operations, but is funded by income generated from its investments of the country’s international reserves.
For 2025, BNM said it spent RM1.86 billion in managing its organisation.
Total assets stood at RM602.22 billion as at end-Dec 2025, down 3.1% from RM621.54 billion a year earlier, mainly due to currency translation effects amid the strengthening of the ringgit.
Its liabilities, which stood 6% lower at RM405.47 billion as at end-Dec 2025 compared with RM431.47 billion a year ago, were mainly from currency in circulation (RM177.75 billion) and deposits by financial institutions (RM118.06 billion).