Page 71 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 4 Our Business Performance 5 6 7 8 69

CORPORATE BANKING

The Corporate Banking Division (CBD) manages the Bank’s

Revenue corporate customers, forging strong client relationships
RM310 million while maximising good-quality assets and minimising
(8.2% YoY) non-performing assets. Responsibilities include providing
a full suite of banking requirements; performing credit
evaluation for new financing applications; and financing
renewal requests. As at 31 December 2024, CBD successfully
managed RM6.4 billion of financing assets, with 33% of the financing assets granted to
financial and insurance/takaful sectors, 16% to the real estate sector, 13% to the wholesale
and retail trade sectors, and 11.9% to the manufacturing sector. Consequentially,
over RM1,298 million in financing was approved, with over RM1,277 million disbursed
by the close of the fiscal year.

Assets PERFORMANCE REVIEW
(RM Million)
In 2024, the Bank’s CBD sustained its strong financial performance, demonstrating
6,223.6 6,400.5 consistent growth over the past three years despite a competitive market. The
division successfully expanded its total financing assets, surpassing RM6,400 million,
7500
6500 while notably increasing its outstanding exposure on Value-Based Initiatives (VBI)
5500 176.9 from RM3,965.2 million in FY2023 to RM4,448.5 million in FY2024. A significant
portion of this VBI financing was directed towards initiatives supporting the
4500 “Platform for raising community standard of living,” aligning with the Bank’s
3500 developmental mandate. This commitment translated into RM1,298.3 million in
2500 approved financing and RM1,277.7 million in disbursements by year-end.
1500
- CBD navigated several operational challenges during the year, including managing
FY2023 FY2024 Variance RM658 million in scheduled financing payments, intense competition for working
capital facilities, and human resource limitations. To overcome these, the division
Revenue implemented proactive strategies. It focused on replenishing matured term financing
(RM Million) to meet customers’ existing and future capital expenditures and projects, thereby
maintaining consistent asset base growth. Simultaneously, CBD strategically mitigated
750 risks associated with financing selected medium-risk customers, demonstrating a
650 balanced approach to expansion. Further expanding its reach, CBD explored capital
550 expenditure requirements within customers’ ecosystems and supply chains to identify
450 310.0 23.5 and capitalise on new growth opportunities.
350 286.5
250 The division continued to expand its market share within the industry average by
150 concentrating on high-impact sectors, including manufacturing, real estate, and
- financial and insurance/takaful. In a move to further support businesses, CBD introduced
FY2023 FY2024 Variance business credit cards to selected customers in the third quarter. In alignment with
both government and bank aspirations, CBD broadened its focus into key growth
areas such as halal food-based industries, public safety and health, infrastructure and
transportation, and renewable energy.