Bank Rakyat expects 5-7% loans growth this year

Bank Rakyat expects 5-7% loans growth this year

KUALA LUMPUR, March 22— Bank Rakyat is expecting a loans growth of between 5 and 7% this year supported by the three segments of personal, car hire purchase and housing loans, says President Datuk Mustafha Abdul Razak.

“Although we are facing uncertainty in the economy currently, we recorded a loans growth of 5.5% for both January and February. We believe we can achieve the target for this year.

“Overall, loans growth registered 7.9% last year while that of Bank Rakyat stood at six per cent,” he told a press conference to announce the bank’s financial year 2015 results here Tuesday.

On decreasing car sales, expected this year, due to higher cost of living, Mustafha said demand was still there especially for local makes like Perodua and Proton.

Bank Rakyat has set aside RM65 million for car hire purchase loans this year, he said.

Meanwhile, Chairman General (Rtd) Tan Sri Abdul Aziz Zainal said three factors contributed to slower loans growth this year.

“Consumers felt burdened by the higher cost of living; retrenchment exercises carried out by various industries which prevented borrowers from taking loans and stringent loan policies introduced by Bank Rakyat’s in order to ensure our financial position remains strong,” he said.

Earlier, Abdul Aziz declared Bank Rakyat’s cash dividend of 13 per cent, amounting to RM385 million, for the financial year ended Dec 31, 2015 against 15% declared for 2014.

The largest Islamic cooperative bank in the country recorded a profit before tax and zakat (tithe) of RM2.01 billion against RM2.19 billion registered in 2014.

— BERNAMA

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