Page 26 - Bank-Muamalat-AR2020

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

CHIEF EXECUTIVE OFFICER’S

STATEMENT

Ensuring the welfare of employees FY2020 FINANCIAL Silver linings were that Bank Muamalat
and the community PERFORMANCE managed to successfully improve asset
quality as Gross Impaired Financing
The health and safety of our employees Note: In mid-2019, (“GIF”) was positioned at 1.07% as at
have been core concerns during Bank Muamalat’s financial year-end December 2020 as compared to 1.31%
this pandemic. We established new was shifted to 31 December from registered in FY2019. The Bank’s
processes to minimise contact during the original 31 March, in order to capital position was also maintained
this period with most meetings and be aligned with the practice of our as Common Equity Tier-1 ratio and
holding company, DRB-HICOM.
discussions conducted virtually. Total Capital Ratio remained stable and
We also embarked on the e-learning well above regulatory requirements at
and e-training routes to ensure that The Bank’s total deposits grew by 15.49% and 17.96% respectively.
that employees can continue developing 13.5% to around RM2.6 billion as of
and nurturing their potential from end December 2020, partly contributed
anywhere and at anytime. by the steady growth in current and
savings accounts (“CASA”). This led
The year also called for greater to CASA ratio improving to 36.1% as
corporate social responsibility efforts compared to 31.1% a year earlier.
to ensure the safety and wellbeing
of our communities. As part of our A commendable performance was 1.07%
effort to fight the pandemic, more than achieved amidst the challenging
RM430,000 was donated to various operating environment in FY2020
associations, communities, hospitals brought on by the prolonged pandemic,
and frontliners. Over RM30 million in and its resulting toll on livelihoods Gross Impaired Financing (GIF)
waqf fund was collected in FY2020 of and economic activities. Among the for FY2020 improved from 1.31%
in FY2019
which RM16.5 million was disbursed key factors that impacted the Bank’s
under waqf projects for the healthcare, financial performance were the lower
education and investment sectors. margins and repricing gaps pursuant
to the multiple cuts in overnight policy More than
During the month of Ramadhan, we rate (“OPR”) in FY2020 amounting to RM430,000 was
contributed more than RM246,000 to a total reduction of 125 basis points,
orphanages and old folk homes to higher provisioning for impaired and donated to various
bring cheer and hope to those who vulnerable assets, and modification associations,
need it the most. loss adjustment arising from payment communities,
moratoriums granted on customers’
The strategic achievements of the Bank are hospitals and
highlighted in more detail on page 25 financing facilities.
frontliners. Over
However, with prudent cost RM30 million in
management in place, the Bank’s cost-
to-income ratio showed improvement waqf fund was
at 54.4% from 59.8% in the last collected in FY2020 of
financial year. As a result, return on which RM16.5 million
equity (“ROE”) was 6.84% as compared
to 7.76% in FY2019 and return on was disbursed under
asset (“ROA”) was 0.72% compared to waqf projects for the
0.82% in preceding year. healthcare, education

and investment
sectors.