Page 68 - Bank-Muamalat-AR2020

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

BUSINESS
BANKING

customers to increase revenue and
boost assets. In preserving existing
asset quality from further deterioration,
we worked closely with the Bank’s
Early Care and Remedial Team to curb
REVENUE CONTRIBUTION further deterioration on asset quality
RM TO BANK’S and tailored-payment assistance to
281.5 Million REVENUE customers to prevent defaults.
%
22.7 Increase 24.1 % The Bank also prioritised a Triple
Year-on-Year Bottom Line (“TBL”) approach
consistent with its focus on values-
based banking. Aligned to this, the
Division’s exposure on TBL activities in
FY2020 increased by 6.08% to RM3,278.2
million, from RM3,088.3 million in
FY2019. On this front, the financing
extended to Preserving Natural
Environment segment accounted for
the highest growth; increased by
32.15% to RM227.7 million in FY2020
from RM172.3 million FY2019.
BUSINESS BANKING facilities and competitive pricing to
secure utilisation from customers while Working towards greater efficiency in
Challenges abounded during the MCO- relying on our signature consultative improving customer experience, we
stricken 2020 as cash flow disruptions approach to understand our clientele’s pooled our manpower resources to
hit businesses, impacting some of the specific needs and tailor our products expedite the documentation process
Bank’s corporate and commercial clients competitively to suit their business during the year, swiftly ensuring
in FY2020. The Bank extended payment requirements. As a result, the Division approvals on RM1,152 million new
assistance via the national moratorium achieved total financial growth of corporate financing and RM288 million
and indulgence of time on principal 7.8% y-o-y, securing RM449 million commercial financing.
payment to affected customers; and for FY2020. By end-December 2020,
a total of RM155 million worth of Business Banking was managing in Through agility, responsiveness and
scheduled settlements, out of a total excess of RM6.1 billion in assets, with greater efficiency, Business Banking
RM374 million, were deferred as per over 97% coming from the Corporate achieved a commendable RM264.9
customer’s request, during the year segment, and 3% from the Commercial million in financing income, RM16.6
under review. The change of the Bank’s segment. million in fee income, and total
financial reporting year from 31 March financing of RM1,137.0 million for
to 31 December which happened in Both segments, in line with the Trade Finance for the year. All new
FY2019 led to Business Banking Bank’s requirements and in view of deals for fee income met the set
entering the competitive fray with the challenging business environment, Business Customer Ratings (“BCR”)
other banks in securing working capital placed emphasis on good quality of 1 to 6; and were under preferred
facilities (i.e. Trade, MRF and MCash assets with good payment capability sectors. BCR is a credit risk grading
facilities) utilisation from customers for in order to maintain Non-Performing given to existing or potential customer
year-end assets. Assets while growing the Division’s applying for business financing.
profit. New account acquisition plans The Division also enhanced product
The situation called for more agile and were executed towards preferred- holding per customer from 1:1 to 1:2.7
aggressive marketing in order to meet rated customers and preferred sectors. reflecting improved yield enhancement
set targets. Business Banking rose to This was complemented by target for fee income products.
the occasion with daily tracking of the marketing on low utilisation rate