Bank Rakyat Malaysia eyes $500.4mln net in 2010

But the target couldn't be met if Bank Negara decides to increase OPR by .5%.

Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has target profit of RM1.7 billion ($500.4 million) for its financial year ending Dec 31, 2010 from the RM1.55 billion ($456.22 million) of the previous year.

Managing director Datuk Kamaruzaman Che Mat said the bank is optimistic of achieving this target in view of an increasing number of borrowers in its consumer financing segment amid stiff competition in the market.

"The projection is also based on the continued strong growth in financing asset size as well as profit margin," he told reporters after the announcement of Bank Rakyat's financial performance and dividends, in Kuala Lumpur on Friday.

However, Kamaruzaman said the profit margin might be lower if Bank Negara Malaysia decides to increase the overnight policy rate (OPR) to 2.5 percent from the current 2.0 percent.

He said consumer financing was the major focus of Bank Rakyat's business, accounting for 90.2 percent of its total financing last year.

The bank's personal financing remains the major contributor at 79.3 percent of its total consumer financing, he disclosed.

View the full story in Bernama.