Page 58 - Bank-Muamalat-AR2020

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

CONSUMER

BANKING

economic impact will reduce consumer accounted for 87% of the total vehicle The Ar-Rahnu’s cash reward campaign
demand for vehicles as non-essential financing assets as a result of the was intensively marketed through the
high maintenance spending is deferred. Bank’s special financing packages for Bank’s branches from August until
As the market shrinks, competition the popular Proton X50 and Proton December 2020, while awareness
among auto vehicle financiers will X70 models. on Ar-Rahnu was built through
intensify and further exert pressure on social media campaigns, internal
pricing, resulting in continued profit Ar-Rahnu (Pawn Broking-i) marketing, and the Ar-Rahnu Telesales
margin squeeze. Campaign. To maintain interest
FOR FY2020, and enhance online engagements
For 2021, Consumer Banking intends AR-RAHNU throughout the MCO period,
to remain agile to opportunities, while REPRESENTED 3% OR Ar-Rahnu calculators were placed
focusing on customers in the T20/M40 RM304.5 MILLION on the Bank’s website; Ar-Rahnu
segment with salary above RM5,000. OF CONSUMER BANKING’S e-Bidding was initiated in December
New special packages for national TOTAL FINANCING ASSETS. 2020; and gold items were displayed
and selected popular models of on the Ar-Rahnu Auction website. The
non-national cars, covering both Division also continued to promote and
new and reconditioned cars, will be Gold price fell sharply on the news of encourage Ar-Rahnu customers with
introduced in order to attract this the discovery of the COVID-19 vaccine. the launch of Pawn Muamalat Gold-i
customer profile. Moving forward, the This usually indicates an escalating (“MG-i”) account in order to provide
Division shall strive to enhance its demand for jewelry or physical gold Ar-Rahnu facility to MG-i account
penetration rate in targetted growth and slowdown in Ar-Rahnu services, customers. The gold products
segments such as new passenger however, the Bank’s Ar-Rahnu accepted under Pawn Broking-i Ar-
vehicles, light commercial vehicles, and business remained stable throughout Rahnu are jewelries, gold bars,
big-bike motorcycles. the year as a result of lingering gold coin, and gold accounts.
caution in consumer sentiments within As at December 2020, the Bank’s
Vehicle Financing Outstanding the current economic outlook. Thus, Ar-Rahnu business is operated at all of
(RM Billion) Ar-Rahnu remained a popular our 67 branches nationwide.
%
+ 12 growth alternative option to resolve short-
term cash flow problems, and gained Ar-Rahnu Marhun Outstanding
0.80 0.69 0.58 0.56 0.55 0.62 increasing attention from the micro and (RM Million)
small and medium enterprises (“SME”) + 79 growth
%
industry.
All new Muamalat Ar-Rahnu 80.2 131.0 138.1 160.9 170.3 304.5
transactions from February 2020
onwards have been using Tawarruq
concept, which is in line with BNM’s
direction for all Islamic Banks to
improve the existing Qard principle
FY15/16 FY16/17 FY17/18 FY18/19 FY2019 FY2020
to other suitable Shariah’s financing
principles. Pursuant to that, the Bank
Performance Review
took the initiative to change the
Despite the knock-on effects of the existing Shariah principle for Ar-Rahnu FY15/16 FY16/17 FY17/18 FY18/19 FY2019 FY2020
pandemic, vehicle financing sales from Qard to Tawarruq. Since then,
performance in FY2020 was better Ar-Rahnu income has been categorised
than expected, recording a 50% y-o-y as financing, instead of fee-based
growth from FY2019. National cars income.