Page 56 - Bank Muamalat_AR24

54 BANK MUAMALAT MALAYSIA BERHAD

RETAIL BANKING

Home Financing

Awarded the "Best significantly boosting first-time homebuyer interest. A pivotal role was also
Performance Award" played by the Ministry of Housing and Local Government's Skim Jaminan
by SJKP with total Kredit Perumahan (SJKP), which guarantees financing up to RM500,000 for
outstanding at first-time homebuyers from low- to middle-income groups or those without
RM3.01 billion fixed incomes. Bank Muamalat's consistent participation in the SJKP earned
it the "Best Performance Award" for three consecutive years (2022, 2023, 2024),
Financing Assets: solidifying its position as a preferred provider.
RM12.22 billion House financing remained central to the Bank’s portfolio, comprising 98.8%
(26.38%) (RM3.22 billion) of the total approved amount in FY2024, with shophouse
financing accounting for the remaining 1.2% (RM40.6 million). Strategies to
Financing Income: accelerate property financing growth focused on the mass market segment
RM499.20 million (residential properties priced between RM100,000 and RM500,000) and
(28.21%) comprehensive mortgage solutions, including debt consolidation via the SMART
Home Refinancing Package. This segment represented 47.02% the Bank’s total
approved residential property financing. The Bank also adopted a property
Total Disbursements: segmentation approach by state and regional demographics, differentiating
RM2.98 billion between landed and non-landed properties, and targeting high-growth areas
(27.39%) such as Klang Valley, Johor Bahru, Melaka, Penang, Kota Kinabalu, and Kuching.

Total New Approval: Significant new developments in FY2024 further supported these strategies.
These included the introduction of a new risk-based pricing model to better
RM2.87 billion manage asset quality and funding costs, along with enhancements and revisions
(13.02%)
to credit underwriting standards for selected high-risk customer segments and
non-fixed income groups. Additionally, a Step-up Instalment Plan was introduced
Net Impairment: for the SJKP package, specifically tailored to customers’ monthly income. These
1.16% concerted efforts resulted in total outstanding property financing increasing to
(FY2023: 1.18%) RM12.33 billion for FY2024, marking commendable five-year growth, and property
financing income surpassed the RM500 million benchmark.

In FY2024, Bank Muamalat's property
financing segment achieved substantial Moving into 2025, Bank Muamalat’s property financing strategy will be led by its
growth and industry recognition, flagship “SMART Mortgage” brand, emphasising customer-centricity and
reflecting a resilient and stable comprehensive solutions for both primary and secondary mortgage markets.
Malaysian property market. Brisk To maintain its SJKP leadership, aggressive promotional efforts via social media
housing demand, driven by new and financial talks are planned. Furthermore, Bank Muamalat aims to expand its
developments and sustained investor sustainable financing market share through “SMART Eco Green” by collaborating
confidence, was further stimulated by with solar vendors and green developers. A focused approach will also target
government initiatives. These included high-yield and in-demand products, specifically SMART Mortgage Solution,
a 100% stamp duty exemption for SMART Mortgage Flexi, and SMART Mortgage EEP/M1.
specific residential properties and an
increased 75% exemption (from 50%)
for properties priced between
RM500,000 and RM1 million,