Page 19 - Bank-Muamalat-AR2020

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Our Performance Sustainability Statement Our Governance Our Numbers Other Information

Subdued internal and external 31 December 2020. On a period-to- However, Bank Muamalat registered a
environments impacted the Bank’s period comparison, it was a decline commendable performance despite net
performance. Financing growth for of 23.7% compared to the previous margin compression due to the lower
the first half of the year was stunted 12 months PBTZ of RM229 million profit rate environment, modification
as business activities were disrupted for the period ended 31 December losses arising from the moratorium,
due to the movement control order 2019. Return on equity was 6.84% and and business slowdown.
(“MCO”). It was further exacerbated return on asset was 0.72%. With
by Bank Negara Malaysia’s (“BNM”) prudent cost management in place, SHAPING OUR STRATEGIC
decision to reduce the overnight our cost-to-income ratio was also RESPONSE
policy rates (“OPR”) and the lower at 54.4% from 59.8% recorded in
government’s introduction of loan FY2019. The Bank reassessed and reprioritised
and financing moratorium. its RISE24 strategies to focus on
*Note: In 2019 Bank Muamalat efforts that improve readiness in
As a result, in the first half of 2020, changed its financial year-end to responding to the impact of the
Bank Muamalat’s pre-tax profit fell 31 December from its original pandemic. RISE24 is driven by seven
31 March, to synchronise with
76.5% year on year to RM28.6 million, the financial year of its holding (7) strategic focus areas (“SFAs”)
mainly on the back of lower income company, DRB-HICOM Berhad which is overarched by value-based
from financing due to deferred principles and prudently centralised
payments during the moratorium on the Bank’s risk and compliance
period. Additionally, provisions of culture. Both defensive and offensive
RM23.7 million were made as a pre- strategies were considered to protect
emptive measure in view of the assets and optimise operations while
potential weakening of asset quality 54.4% encouraging prudent risk-taking to
due to the impact of the COVID-19 maximise opportunities for growth.
pandemic. Among our priorities for FY2020
was to safeguard the well-being of
Despite a weaker performance in the FY2020’s cost-to-income ratio was
first half of the year, Bank Muamalat lower than the 59.8% recorded in our employees and remain focused
capabilities
and
managed to record a Profit Before FY2019. on building capacity to remain
developing
Tax and Zakat (“PBTZ”) of RM174.8 resilient in the current banking
million for the financial year ended environment. The introduction of
Additional provisions various digital apps and platforms
of RM23.7 million during the year provided a safer
were made as a means of banking and improved
pre-emptive measure speed and convenience for an
enhanced customer experience.
RM174.8 in view of the Efforts were redoubled to transform
potential weakening

Million of asset quality due the credit risk management processes
to manage the balance sheet and
to the impact of the
defend asset quality. This led to a
COVID-19 pandemic. strengthening of the Bank’s asset
PBTZ recorded for FY2020