Page 162 - Bank-Muamalat-AR2020

160 BANK MUAMALAT MALAYSIA BERHAD About Us Our Leadership Our Strategy
ANNUAL REPORT FY2020

DIRECTORS’ REPORT

PrOSPECTS (CONT’D.)
Against this backdrop, the Bank will re-prioritise its business strategies to move forward. In line with the ongoing implementation
1
of RISE24 , i.e. the Bank’s 5-Year Strategic Business Plan, the Bank will continue to uphold its asset quality, build buffers to defend
against higher delinquencies, kick start an intensive recovery plan, and strengthen liquidity and capital management. It will also
explore new growth areas and expand its distribution channels to remain competitive in the post pandemic landscape. The Bankwill
drive growth in high potential segments, innovate products to close the gaps in product offerings and leverage on technology to
manage process and service efficiency.
Recognising the emerging risks associated with the current economic conditions, the Bank has taken the necessary steps to mitigate
and minimise these risks, in accordance with BNM’s guidelines. The Bank will continue to exercise effective Risk and Compliance
Management programmes for a more robust enforcement of regulatory requirements and in managing legal and reputational risks.
The Bank is also focusing on streamlining its business activities for continuous business resilience. Action plans are in place to
cushion the impact of any potential adverse effects on the Bank’s financial performance and balance sheet.
Moving forward, the Bank anticipates a better growth for the year, with overall asset expected to grow on the back of better prospects
in overall domestic economic expansion. The Bank also forecasts its gross financing to increase for FY2021 due to anticipated growth
in retail financing as the current low profit/interest rate environment, which is beneficial for retail consumers, is expected to remain
until year-end.

rATING By ExTErNAL rATING AGENCIES
Details of the Bank’s ratings are as follows:

rating Agency Date Classification rating
RAM Rating Services Berhad July 2020 Long term A2
Short term P1
Subordinated Sukuk A3
Outlook Stable
Malaysia Rating Corporation Berhad December 2020 Long term A
Short term MARC-1
Senior Sukuk A
Outlook Stable

1 RISE24 is a 5-Year Strategic Business Plan that focuses on seven (7) Strategic Focus Areas, embedded with risk and compliance culture and
overarched by the value-based principles. The business plan will be supported by twenty-four (24) key strategies and will be implemented between
years 2020 to 2024.