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Governance
Our Performance Sustainability Statement Our Governance Our Numbers Other Information
During the year, we
continued to focus on
retaining our good
customer portfolio while
strategically growing
targeted customers to
ensure we maintain asset
quality. The growth is
guided by the Bank’s
preferred sectors as
per our risk appetite
statements and sectors as
endorsed by the Bank.
Corporate Sectors Anticipated Risks & Prospects
The Corporate segment expanded 7.59% to RM5.92 billion Business Banking Division faced a high scheduled payment
for FY2020, driven mainly by manufacturing, agriculture and of RM283 million in year 2021 that may cause potential
construction sectors. During the year, we continued to focus risk to our growth, but this will be mitigated by quick
on retaining our good customer portfolio while strategically response to customers’ complaints and requirements to
growing targeted customers to ensure we maintain asset cement relationships and build loyalty. Through improved
quality. The growth is guided by the Bank’s preferred sectors swift and customised services, we will work to minimise the
as per our risk appetite statements and sectors as endorsed risk of competition from other financial institutions, in terms
by the Bank. We also focused on penetrating new target of rates, product offerings and services.
markets, especially mid-tier corporate customers.
We are mindful that the possible prolonged adverse
Commercial Sectors economic conditions might result in deferred CAPEX and
OPEX requirements of target customers and this could lead
Our Commercial segment registered a 36.75% surge in asset to monthly unscheduled settlements. In such uncertain
growth from RM191.70 million in FY2019 to RM262.15 in conditions, we have to respond swiftly, as lengthy on-
FY2020 as we continued to grow the cooperative portfolio boarding processes could result in customers favouring other
under the financial and insurance/takaful activities sector financial institutions.
and wholesale and trading sectors to preserve our asset
quality as part of our efforts to mitigate the risk of these To mitigate this risk, measures include constant engagement
accounts turning into non-performing accounts, which is with customers to ensure reutilisation by offering special
crucial in the current challenging banking environment. We pricing to good-rated customers; packaging holistic product
believe in offering tailored products for customers based on solutions that fulfil customised requirements encompassing
their segments, and practice filtration of customers based on financing, deposits and possibly takaful products; and
our risk appetite statements. We enhanced customers’ asset finally to reengineer the on-boarding process to ensure faster
quality by partly securing the financing with guaranteed turnaround time.
schemes.