Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has declared an 18 per cent dividend amounting to RM534.7 million for the financial year ended Dec 31, 2025.
The cooperative bank has maintained a double-digit dividend payout for more than 20 years. It declared a 17 per cent dividend totalling RM486.32 million last year.
He said the growth was driven by strong retail financing, a greater focus on non-fund-based income, accelerated digitalisation to capture the mass affluent segment, and improved asset quality.
Bank Rakyat’s core income rose two per cent to RM6.8 billion, supported by an 8.6 per cent increase in gross financing to RM93.3 billion, outperforming the industry average.
Chief executive officer Ahmad Shahril Mohd Shariff said other income grew about 31 per cent, driven by higher fee-based income and stronger treasury performance.
Looking ahead, he said the bank will continue to prioritise resilience amid uncertainties.
“Our capital position remains strong, with our risk-weighted capital ratio above 25 per cent, providing ample buffer to absorb potential shocks. Bank Rakyat continues to diversify beyond personal financing.
“We are reducing dependency on personal financing, with strong growth across segments such as Ar-Rahnu, hire purchase and home financing, while business banking continues to expand,” he said.
To support expansion, the bank strengthened its funding base, with low-cost deposits rising 15.2 per cent to RM12.4 billion.
Shahril said Bank Rakyat continues to play a developmental role, with financing to micro, small and medium enterprises and cooperatives rising nine per cent to RM5.3 billion.
Approvals to cooperatives also increased significantly, contributing to job creation and economic activity.
He said the bank’s financing activities supported the creation of about 13,600 jobs and generated RM15.2 billion in business turnover.
Bank Rakyat, the country’s largest Islamic cooperative bank, operates under the purview of the Entrepreneur Development and Cooperatives Ministry.
Minister Steven Sim Chee Keong said the bank’s strong performance has enabled it to optimise its capital position while sustaining a high dividend payout.
Dividend payments to members will begin today, benefiting 783,324 members.
Looking ahead, Shahril said the bank will focus on its new LEAD30 (2026–2030) strategy.
“We will focus on modernising our ecosystem, strengthening cybersecurity, improving efficiency and expanding our domestic business, while maintaining leadership in key segments.
“Despite economic challenges, we are confident of sustaining our growth momentum while continuing to deliver value to our members and fulfil our mandate,” he added. – NST ONLINE
