Bank Rakyat has decided to cease the operations of subsidiary Rakyat Holdings Sdn Bhd as well as units under that subsidiary. — Picture by Choo Choy May
KUALA LUMPUR, Dec 24 — Bank Rakyat today explained that the decision to cease the operations of subsidiary Rakyat Holdings Sdn Bhd as well as units under that subsidiary was made in order to prioritise and focus on its financial services business.
No staff retrenchment took place and employees affected have been absorbed to serve the bank starting December 15 based on their skills and qualifications, the Islamic co-operative bank said in a statement today.
Rakyat Holdings’ subsidiaries are Rakyat Travel, Rakyat Hartanah, Rakyat Asset Management, Rakyat Niaga and Rakyat Facility Management.
Bank Rakyat, an entity controlled by the Entrepreneur Development Ministry, also gave assurance of the group’s financial position.
The bank noted that it recorded encouraging results for the first nine-month financial period ended Sept 30, 2019, with its profit before tax and zakat rising by four per cent year-on-year to RM1.29 billion.
“Based on this performance, Bank Rakyat is confident of maintaining the good results achieved previously. In line with that, the dividend in respect of the financial year ending December 2019 will be paid at a competitive rate by end of the first quarter of 2020,” it added. — Bernama