Page 159 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 157
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

OTheR sTATuTORy INfORMATION (cONT’D.)

(f) In the opinion of the directors:
(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve
(12) months after the end of the financial year which will or may affect the ability of the Group or of the Bank to meet
their obligations when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial
period and the date of this report which is likely to affect substantially the results of the operations of the Group and of
the Bank for the financial year in which this report is made.

coMPliance with bank negara Malaysia’s Policy DocuMents on financial rePorting
In the preparation of the financial statements, the directors have taken reasonable steps to ensure that the preparation of the
financial statements of the Group and of the Bank are in compliance with the Bank Negara Malaysia’s Policy Documents on Financial
Reporting for Islamic Financial Institutions and the Policy Documents on Classification and Impairment Provisions for Financing.

BusINess RevIew 2021

Despite the continous challenging business environment brought about by Covid-19, the Group posted a record profit before zakat
and taxation of RM256.6 million for the financial year ended 31 December 2021, a growth of 46.8% from RM174.8 million registered
last year. This has been largely driven by increased total income, strong financing growth and improved asset quality. During the
year, the bank’s net profit margin grew by 13bps to 2.46% from 2.33%. Total overheads and expenditures also decreased by 1.1%
to RM401.3 million during the year from improved cost management. As a result of better asset quality, credit cost reduced by
32.9% or RM26.1 million to RM54.0 million.
Total assets grew by 7.0% to RM27.6 billion as at 31 December 2021 as compared to RM25.8 billion last year. This was mainly
contributed by 14.4% growth in total financing to customers from RM18.1 billion to RM20.7 billion as at 31 December 2021.
The Group saw strong growth of 18.9% in retail segment, supported by sustained growth from non-retail segments.
Asset quality improved with gross impaired financing stood at 0.83% as at 31 December 2021 as compared to 1.07% registered as
at 31 December 2020. In view of the challenging macroeconomic environment, the Group continues to strengthen its financing loss
coverage ratio from 101.3% to 135.3%.
The Group’s Common Equity Tier-1 Ratio and Total Capital Ratio remain stable, stood at 13.708% and 17.349%, well above the
regulatory requirements.

ProsPects

Malaysia’s economy is expected to continue its recovery, riding on the positive momentum of the country’s high vaccination
coverage and ongoing booster rollout. With the resumption of domestic and international travel, as well as rising commodity prices
and improved labour conditions, the Government expected these conditions will continue to help lift the economy.

The Bank also sees that the economic growth moving forward will be supported by the Malaysian Budget 2022 and the Twelfth
Malaysian Plan (“RMK-12”). These plans will not only focus on speeding up the economic recovery but also on rebuilding national
resilience and catalysing reform as well as driving socio-economic recovery activities and the national development agenda. With
the announcement of Budget 2022, the Government expected the GDP growth to be between 5.5% and 6.5% in 2022¹. In addition,
supported by strong capital and liquidity, Malaysian financial sector is expected to remain sound and supportive of the domestic
economy development in 2022.

1 Economic Outlook 2022, Ministry of Finance