Page 23 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 21
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

Good management of the balance sheet Evolution of Islamic Products and Services
was also evident. The stable Common Equity
Business growth will be supported by more innovative products and solutions
Tier-1 Ratio and Total Capital Ratio, which
that cater to meeting customers’ numerous needs. In terms of Islamic product
closed well above regulatory requirements
development, the Bank’s portfolio of Shariah contract and product offerings is
at 13.7% and 17.4%, respectively, reflected
set to grow beyond the current focus on Tawarruq. The goal is to elevate basic
financial resilience. Gross Impaired Financing
products into holistic financial solutions that result in wealth creation for retail
Ratio also improved to 0.83% in FY2021
and corporate clients.
from 1.1% in FY2020, the lowest since
the Bank’s establishment, on the back of
This will be coupled with enhanced service delivery to increase outreach and
stronger asset quality and a prudent risk
create better customer accessibility through digital touchpoints.
and compliance culture.
Investing in Digital Innovation
Expanding Business Growth
Digital disruption is the new normal and is redefining the future of banking. While
A two-pronged approach has been
pursuing near-term growth, the Bank is equally committed to drive medium-
established to catalyse business growth.
to long-term growth by nurturing digital capabilities in line with the nation’s
This entails transforming the existing core
development agenda as espoused in the National 4IR policy, and MyDIGITAL
business of Retail Banking and Corporate
blueprint.
Banking whilst diversifying the Bank’s income
portfolio through the new growth engines of The importance of digital innovation and process automation are anchored
Transaction Banking and Commercial & SME in the Bank’s strategy and various initiatives continue to be implemented to
Banking. ensure the ease of access, usage and seamless banking experience as well as to
further digitalise our customers’ financial journey, especially in terms of mobile
For all retail customers the Bank will continue
application and internet banking usage.
to enhance product and service offerings.
Various collaborations with government Making continuous progress on this front, we have fortified the Bank's MAP
agencies, cooperatives and associations online services with the launch of an Online Deposit Account Application
have been implemented and the Bank is (“ODA”) to enhance customers’ safety, ease and convenience in submitting their
enhancing fee income by targeting high application digitally before they visit branches.
income and affluent customers through the
expansion of wealth management services. Automated processes and workflows have also been adopted within our banking
For Corporate Banking, rebalancing of operations to drive efficiencies and streamline the human capital management
portfolio is undertaken with more innovative process. In addition, the establishment of a cloud based integrated human capital
long-term financing based product and management system now allows efficient access to data and information, remotely
solutions. For both segments, sharp shifts in and instantly.
consumer preference to do banking online
Moving forward, more innovation is in the pipeline. Bank Muamalat is charting
are accelerating the Bank's digitalisation
a digital journey through partnerships to synergise and expand our digital
journey.
offerings.
Transaction Banking together with
Towards becoming a High Performing Organisation
Commercial and SME Banking are the
new engines of growth and are being Fuelling the Bank’s ambitions requires continued commitment to transform into
nurtured through strategic collaborations a high-performing organisation. The Bank is investing in empowering employees
and engagements with governmental and to adopt a transformative culture that involves enhancing digital skills, sparking
industry-based agencies. For Transaction innovative mindsets, growing risk consciousness, and delivering positive
Banking, our focus is to grow our corporate impacts. Various trainings combined with upskilling and reskilling programmes
clients by providing working capital, trade and have been implemented for the year to enhance productivity and capabilities,
supply chain solutions. A broader customer develop leadership qualities, promote career progressions and grow the Bank’s
base is being developed as we explore new talent pool.
preference sectors by actively exploring more
sectors for commercial and SME businesses.