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Bank Pembangunan 2019 pre-tax profit jumps, declares RM152m dividend
Friday, 26 June 2020

KUALA LUMPUR: Bank Pembangunan recorded a 45.6% increase in profit before tax and zakat of RM380mil on the back of lower impairment allowance, higher collection from recoveries and gains on disposal of investment securities.

In a statement on Friday, the bank said earnings per share jumped 47.1% year-on-year to 8.18 sen per share due to a higher net profit.

In light of the performance, Bank Pembangunan will be making a dividend payment of RM152.21mil inclusive of a special dividend for the financial year, which is the highest payout in the bank's history.

"BPMB’s strong financial performance will enable us to undertake our developmental role more effectively.

"We have our work cut out for us under the Bank’s 3-year strategic plan and we now need to focus on executing the plan whilst preserving our financial foundation," said Bank Pembangunan chairman Datuk Zaiton Mohd Hassan.

In FY19, the bank's total group assets remained at RM25bil while total liabilities were notably reduced from borrowings and and redeemable notes maturities during the year.

The bank's cost to income ratio (CIR) increased to 16.5% in FY2019 from 13.1% previously due to a drop in net income, although this remains the lowest among the development financial institutions.

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