Page 47 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 Our Strategy 4 5 6 7 8 45

IMPLEMENTING THE 3RD YEAR OF RISE26+ 4 Manage Our Capital
Efficient capital allocation was central to preserving our
Bank Muamalat is currently in the third year of implementing portfolio resilience. This involved focusing on efficient
its comprehensive five-year business plan, RISE26+, initially
launched in 2022. This strategic roadmap was meticulously capital distribution across various business lines and
activities, carefully considering factors such as risk-adjusted
developed as a proactive response to a challenging and
dynamic market landscape, characterised by significant returns, growth opportunities, and strategic priorities.
As at end of FY2024, our Common Equity Tier 1 and
disruption. RISE26+ harnesses insights from market dynamics,
potential opportunities, and the Bank’s intrinsic capabilities. total capital ratios remained adequate at 11.04% and
16.74% respectively, comfortably exceeding regulatory
It represents more than mere financial and organic growth;
it embodies Bank Muamalat’s vision to become the “Strongest requirements.
Islamic Bank,” underpinned by sustained financial stability, Drive Customer Centricity
robust balance sheet, market leadership, and adaptability to 5 Our commitment to customer centricity was evident
change
in the accelerated digitalisation efforts aimed at
In 2024, the RISE26+ framework continued to demonstrate transforming customer journeys. This included enhancing
its enduring relevance as the guiding force behind the Bank’s customer engagement through innovative initiatives
sustained growth trajectory. The framework’s eight strategic such as the generation of two Artificial Intelligence (AI)
thrusts powered the following focus areas for the year: ambassadors/ mascots, ‘Ringgit Rayyan’ and ‘Mumu Cat’,
launched in July 2024, and significant enhancements
1 Continue to Drive Sustainable Growth to WhatsApp queries. Our diverse customer base has
This thrust aimed to maintain our revenue growth also driven us to continue to empower vulnerable
momentum, positioning the Bank on a sustainable communities, particularly the bottom 40% income
growth trajectory through responsible financing, group (B40) and Asnaf (eligible recipients of Zakat)
fee-based income, and digital channels to remain communities, as well as SMEs through expanding our
competitive within the industry. For the year, double-digit financing initiatives.
growth was impressively maintained. This was achieved Ensure Operational Efficiency
by strategically focusing on growing high-yielding 6
assets, while accelerating core fee income through cards We continued to enhance operational efficiency by
initiatives, retail-based products and group synergy. implementing robust process re-engineering and
digitisation initiatives. This involved the deployment
2 Optimise Cost of Funds of Robotic Process Automation (RPA) solutions to
A primary focus was placed on re-engineering our automate repetitive and rule-based tasks and streamline
deposit structure towards lower-cost deposits through banking processes to improve turnaround time (TAT).
comprehensive campaigns and intensive marketing. Furthermore, our operations became more scalable
Given the intense competition in the market for low-cost with the launch of a real-time Liquidity Risk
deposits, the Bank dedicated substantial effort to this Management (LRM) Dashboard, and a dedicated
area, which contributed to the notable 11.2% deposit Credit Operations Centre for East Malaysia, launched in
growth. Our efforts focused on expanding savings and December 2024.
current account offerings to contain the overall cost of Refer to pages 44 to 49 for a summary of the Bank’s
funds.
FY2024 key strategic achievements.
3 Manage Our Asset Quality
We continued to manage our asset quality diligently by
focusing on growing secured and government-backed
assets. Proactive monitoring of our customers’
performance was paramount, enabling us to identify
early warning signs of potential credit deterioration a
nd implement prompt remedial actions. For FY2024,
our Gross Impaired Financing (GIF) ratio stood at a
healthy 1.05%, below the Islamic banking industry
average of 1.98% as end of December 2024,
demonstrating our robust risk management practices.