Page 20 - Bank-Muamalat-AR2020

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

CHAIRMAN’S

STATEMENT

quality as gross impaired ratio implemented to further assist both
Bank Muamalat improved to 1.07% in FY2020 from individual and business customers.
also achieved a 1.31% in FY2019, the lowest since Bank Muamalat also achieved a
the Bank’s establishment. Capitalisation
key milestone in levels stayed strong with Tier 1 key milestone in its social finance
its social finance and total capital ratios at a healthy efforts with the establishment of the
efforts with the 15.4% and 18.0% (industry average: Jariah Fund on 22 September 2020 in
alignment with BNM’s Value-Based
establishment of 14.0%; 18.3%). Additionally, the Intermediation (“VBI”) drive. The
Bank is backed by its existing
the Jariah Fund on Basel III-compliant Subordinated Jariah Fund is a social welfare
22 September 2020 Sukuk programme to support its crowdfunding platform for charitable
in alignment with capital position when required; projects that aim to generate a
sustainable impact on the economic
BNM’s Value-Based a total of RM250 million has been growth of the ummah under the
Intermediation issued as at end-September 2020. pillars of education, health and
(“VBI”) drive. Taking into consideration the Bank’s economic empowerment. In the first
sturdy capitalisation, which provides phase, beginning September 2020,
a strong loss absorption buffer against Bank Muamalat worked with five
an anticipated rise in defaults in (5) non-governmental organisations
Total Capital Ratio the wake of the pandemic, (“NGOs”), namely Yayasan Sejahtera,
(%)
notwithstanding the extension of Yayasan Ikhlas, Yayasan Muslimin,
financial relief to affected customers; The National Autism Society of
15.4% RAM Ratings has reaffirmed Malaysia (“NASOM”) and Malaysian
Tier 1 capital ratio for FY2020 the Bank’s financial institution Association for the Blind (“MAB”)
surpassed industry average of 14.0% ratings (“FIRs”) at A2 Stable P1, and as charitable partners to monitor the
reaffirmed the A3/Stable rating of selected campaigns posted on the
the Bank’s RM1 billion Subordinated platform. For its first phase, Bank
18.0%
Sukuk Murabahah Programme Muamalat has collected RM40,415
Total capital ratio for FY2020 is close (2016/2036). in funds which will be channelled
to industry average of 18.3% to selected beneficiaries through the
SHAPING SOCIAL FINANCE selected community-based projects.

Bank Muamalat continued to support In serving the underserved, the Bank
customers during this difficult time continues to provide financing for
by offering financing moratorium as affordable homes to the lower-to-
well as various payment assistance middle income earners, self-employed
programmes. individuals and operators of small
business entities. Through Smart
In March 2020, the Bank provided Mortgage Solution programme,
assistance to individuals and RM257 million was disbursed.
businesses, in particular to Small
and Medium Enterprises (“SMEs”), Bank Muamalat has also taken an
through a blanket six-month active role in the industry to help
moratorium on financing facilities. champion the move towards
Following that, an enhanced targeted sustainable practices, and was
payment assistance programme was appointed to lead the development