Page 60 - Bank Muamalat_AR24

58 BANK MUAMALAT MALAYSIA BERHAD

RETAIL BANKING

Credit Card

Financing Assets: The Malaysian credit and debit cards industry faced significant challenges in 2024, primarily
RM105.19 due to intense market competition. Nevertheless, favourable consumer spending behaviour
and domestic demand growth continued to provide underlying support. In this environment,
million Malaysia’s credit card market experienced value growth to RM50.5 billion, with the number
(79.4%) of cards in circulation reaching 44.5 million for face-to-face transactions and 35.6 million
for online transactions. This indicates a robust and evolving payment landscape despite the
competitive pressures.
Financing Income:
RM13.80 Throughout the year, the Bank achieved notable growth in both its credit card and merchant
million base, while its debit card segment experienced a slight drop. Specifically, the Bank’s total credit
card approvals increased by 4.3% and credit card receivables surged by an impressive 88.7%
(137.5%) in FY2024, significantly outpacing the overall card industry’s credit card receivables growth
rate of 7.8%. Furthermore, the Bank’s credit card base expanded strongly to 24,424,
Net Impairment: representing a substantial growth of 77.4% in 2024, demonstrating successful customer
1.43% acquisition. The merchant acquiring business navigated ongoing stiff pricing competition
(FY2023: 3.43%) to achieve commendable results, with merchant sales growing by 70.2% in 2024. The Bank
successfully rolled out over 5,067 new terminals during the year, bringing the total to more
than 8,760 terminals located across over 4,112 merchant outlets. This expansion significantly
enhanced the Bank’s merchant network and facilitated increased transaction volumes.
Application The strong performance in 2024 was underpinned by several key strategic initiatives and
(No of Cards) new developments. The Bank introduced several new products, including corporate cards for
18,820 20,111 the DRB-Hicom Group and MMC, and various co-brand Credit Cards-i in collaboration with
25000 partners such as DRB-Hicom Automotive, Pos-Malaysia, and Lexus/Toyota. Additionally,
20000 specialised Health Care Credit Card-i and Education Debit Card-i products were launched
15000 to cater to specific market segments.
10000
5000 To stimulate card usage and customer engagement, a Balance Transfer Programme was
initiated, actively contacting existing cardholders to encourage transfers from other banks to
-
FY2023 FY2024 Bank Muamalat. The Bank also focused on expanding its merchant network through strategic
marketing tie-ups, concentrating on high-growth segments like Travel, Health & Beauty, and
Approval Food & Beverage, as well as Lifestyle & Hobby niches such as Golf, Fishing, and Travelling.
(No of Cards) A significant strategic tie-up was formed with TSM Group under the “Muamalat First”

25000 16,658 17,375 initiative, aiming to capture staff within the TSM Group for deposit and financing products,
with a target of acquiring 40,000 new cards. Furthermore, the Bank actively worked to grow
20000 its payment channels and gateways, enhancing its overall payment ecosystem.
15000
10000 Several key strategic priorities have been outlined for FY2025 aimed at sustaining growth
5000 and market leadership. The Bank plans to introduce innovative new products, including
- Multicurrency/World Debit Cards-i specifically for the High Net Worth Segment, as well as World
FY2023 FY2024 Debit-i. A pioneering initiative involves the launch of SME Debit and Credit Cards, positioning
Bank Muamalat as the first Islamic bank to offer such products in strategic collaboration with
Activation CGC, featuring key benefits like cashback, 0% flexible payment plans, free Takaful coverage,
(No of Cards) travel protection, and lounge access. New Credit Cards-i will also be developed, including a
25000 Loyalty Core for reward programmes and enhanced card user management capabilities, and
20000 a dedicated Travel Card-i. The Bank intends to expand its Co-Brand Credit Cards-i portfolio
15000 further, with planned collaborations including EON and Pasar.ai, which will be integrated
10000 4,919 6,698 with the HDC Halal Integrated Platform. Alongside product innovation, the Bank will focus
5000 on expanding its merchant terminal network through marketing tie-ups, specifically targeting
- digital platforms, travel, dining & shopping, and daily consumption segments, and offering
FY2023 FY2024 birthday month benefits. Strategies to grow the payment gateway include expanding
cross-border payment capabilities and implementing a wallet check-out page for enhanced
user experience.