Page 57 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 4 Our Business Performance 5 6 7 8 55

Personal Financing

Financing Assets: Throughout FY2024, the Bank implemented several key developments and
RM8.29 billion initiatives to enhance its personal financing offerings. Efforts included concentrating
(19.06%) Muamalat 1st on Personal Financing and Credit Card products for all staff under
the TSM Group, alongside a sharpened focus on AG Salary Deduction and
BPA Angkasa for government civil servants. Pricing strategies were refined through
Financing Income: the adoption of Risk-Based Pricing, enabling better management of high-risk
RM547.8 billion customer segments and funding costs, adhering to a “high risk, high return” principle.
(11.84%) The Bank also worked to increase the number of EEP arrangements and enhance
collaborative activities across all regions, including sales events, webinars, and
Total Disbursements: Corporate Social Responsibility (CSR) engagements.
RM4.74 billion Strategically, the Bank aimed to become the preferred choice for T20 and M40
(26.59%) segments, encompassing professionals and young graduates, including non-Bumi
segments. Additionally, there was a concerted effort to become the preferred
Total New Approval: financial services provider for the Healthcare Sector and to improve market share
RM4.80 billion within the affluent and high-end customer segment (those earning above RM7,000

(30.2%) monthly) through enhanced Personal Financing products and improved product
bundling.
Net Impairment: The Bank’s personal financing offerings are primarily extended to employees across
0.98% various organisations, including government-related agencies and corporations.
(FY2023: 0.85%) As at the close of FY2024, Bank Muamalat maintained agency arrangements with
a total of 670 entities through its Employer Empanelment Programme (EEP) and
Muamalat First (M1). The Bank consistently applied prudent credit assessment,
Several factors underpinned consumer aligning with the Group’s established risk appetite. Consequently, the outstanding
demand for personal financing in Personal Financing-i portfolio stood at RM8.38 billion at the end of 2024.
Malaysia during FY2024, including
rising living costs, small business
expansion, lifestyle upgrades, debt Looking ahead to FY2025, Bank Muamalat’s strategy for personal financing includes
consolidation needs, and the increasing introducing “Cash-i SMART (PF3),” a new Personal Financing product based on
convenience of digital financing risk-based pricing, targeting mass market customers with monthly salaries of
platforms. Government initiatives RM2,000 and above, and featuring a shortened financing tenure of up to seven
aimed at promoting financial inclusion years. Preferential packages under Cash-i SMART will also be introduced, including
and consumer credit further stimulated Flexi and ECO-Green programmes, with unique selling propositions such as cash
market growth. In this dynamic back and payment holidays. The Bank plans to expand its Personal Financing market
environment, Bank Muamalat’s into secured arrangements under AG Salary Deduction and BPA Angkasa
personal financing business registered arrangements. Furthermore, it will strengthen its position within the EEP segment
a marginal increase in new sales for across all regions by aggressively opening service counters at EEP offices.
FY2024, reflecting its commitment Finally, Personal Financing market penetration will be expanded into the M1 and
to addressing customer financing MuSS PLUS segments, focusing on secured payments via salary transfers.
needs while concurrently promoting
responsible financing practices within
communities.