Page 67 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 4 Our Business Performance 5 6 7 8 65

COMMERCIAL BANKING DIVISION

Bank Muamalat’s Commercial Banking Division (CMBD)

Revenue serves as a pivotal intermediary, offering comprehensive
RM99 Million Shariah-compliant financing and banking solutions to Micro,
(26.0% YoY) Small and Medium-sized Enterprises (SMEs), as well as
mid-sized and large corporations. This division is
instrumental in bridging the gap between retail and
corporate banking by providing structured financing, working capital solutions, and
cash management services that are essential for fostering business growth, with a core
focus on business, trade, and contract financing. It aims to also uplift underserved SMEs
through participation in Bank Negara Malaysia’s funds and government guarantee
schemes, as well as building strategic alliances with government agencies and ecosystem
partners to deliver value-added programmes.

Asset Quality PERFORMANCE REVIEW

100% 24% 20% CMBD’s resilient growth was anchored on revenue which rose to RM99 Million
90% BCR 7-10 BCR 7-10 in 2024, marking a 26.0% year-on-year growth. By the end of 2024, CMBD’s total
80% asset portfolio reached RM2.2 billion, with the majority, RM1.7 bilion, allocated to
70% 43.5% 30% commercial financing clients and the remaining RM484 million to Retail SME
BCR 6
60% BCR 6 financing clients.
50% 50%
40% BCR 1-5 80% (BCR 1-6) A key highlight was CMBD’s exceptional performance in the Cooperatives financing
30% 76% (BCR 1-6) 32.5% segment. Despite heightened market competition, CMBD not only met but
20% BCR 1-5 Improved by 17.5% significantly exceeded its target, achieving RM400 million against an initial projection
10% of RM300 million, a 33% outperformance. Similarly, the financing portfolio for
0% government-awarded contracts recorded a solid performance, surpassing its target
FY2023 FY2024 by 18% to reach RM132 million, against a target of RM112 million. This strong
showing reflects CMBD’s strategic focus on providing critical support to contractors
BCR = Business Credit Rating engaged in public sector projects, particularly those with established track
Note: The values "BCR 1-5," "BCR 6," and records.
"BCR 7-10" are used to categorise the Bank's
asset quality. This is a classification system Furthermore, CMBD achieved commendable growth in Government Guaranteed
for the creditworthiness of customers, where Financing Assets, recording a 7.7% increase to RM323 million against a target of
a lower number (like 1-5) indicates a higher RM300 million. This outperformance was primarily driven by strong market demand
quality, or lower risk, customers, while higher
numbers (like 7-10) represent lower quality, and the effective utilisation of government guarantee schemes, such as those
or higher risk customers. facilitated by Syarikat Jaminan Pembiayaan Perniagaan (SJPP), to empower SMEs
and strategic sectors.

Beyond financial metrics, CMBD’s commitment to community upliftment was evident
through a 28% increase in financing for initiatives aimed at enhancing community
living standards. Notably, Phase 3 of the Skim Pembiyaan Kewangan Usahawan Mikro
Negeri Pahang (i-PUSH) successfully onboarded 1,123 customers in FY2024, further
showcasing the division’s tangible impact on grassroots economic development.