KUALA LUMPUR (April 16): Bank Rakyat is distributing its biggest dividend in a decade and the largest Islamic cooperative lender in Malaysia is confident that it will withstand near-term challenges.
Formally known as Bank Kerjasama Rakyat Malaysia Bhd, the bank plans to distribute RM534.7 million to 783,324 members’ accounts starting Thursday. That represents a payout of 18% for the financial year ended Dec 31, 2025 (FY2025), compared to 2024’s rate of 17%.
Chief executive officer Ahmad Shahril Mohd Shariff expects minimal impact on Bank Rakyat’s performance this year despite ongoing geopolitical uncertainties, with its portfolio largely concentrated in the retail space, positioning it to weather near-term challenges.
“As long as households continue to spend, we should be able to absorb external shocks,” he said. “At the same time, we believe the government and Bank Negara Malaysia (BNM) stand ready to roll out intervention measures if needed.”
The cooperative bank operates under the Ministry of Entrepreneur and Cooperatives Development and is regulated by BNM.
WATCH: Bank Rakyat declares highest dividend in a decade
For FY2025, Bank Rakyat posted a 4.2% increase in profit before tax and zakat to RM1.9 billion, a performance the bank attributed to higher interest and non-interest income, on the back of a supportive domestic economy.
Gross financing expanded 8.6%, outpacing the industry average, while current savings and investment accounts rose 15.2%.
Asset quality improved with the gross impaired financing ratio — the proportion of bad debts as a percentage of total loans — easing to 1.8% from 1.9%, while its capital position also remained well above regulatory requirements.
However, Ahmad Shahril flagged that the bank remained cautious on the commercial segment. “We need to identify new economies or emerging markets to offset any possible impact on our performance this year,” he noted.