Page 29 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 27
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

a collaboration between Bank Muamalat financing which registered a 27.2% Y-o-Y
and State Islamic Religious Councils, we increase to RM6.3 billion. The household
have collected more than RM32 million in sector brought in 67.3% of the total financing
wakaf funds of which RM18.6 million has by the Bank, while the remaining was
been disbursed to fund a variety of wakaf contributed by financing non-retail customers.
projects. Under the Muamalat Prihatin
programme, contributions worth RM20,000 Meanwhile, asset growth benefitted from a
have been channelled to households most 14.5% Y-o-Y increase in total gross financing
affected by the pandemic. The contributions to customers, which rose to RM20.9 billion in
comprised food packs and necessities to 100 FY2021 from RM18.2 billion in FY2020, mainly
affected families all over Malaysia. In response from the consumer banking segment. Quality
to the plight of flood victims, Bank Muamalat of assets was robust with gross impaired 46.8%
has also donated RM10,000 to the Pahang financing ratio standing at 0.83% in 2021, PBZT growth
state government to assist in rebuilding lower than the industry average of 1.25%.
livelihoods of affected businesses, families
Total deposits increased by 7.5% which
and individuals.
translated to around RM1.6 billion growth in
FY2021. Retail deposit franchise remained
More information in Community Development
on page 99 modest with individual deposits accounting
for 11.1% of total funding while the proportion
of current and savings account deposits 133.2%
ANALYSIS OF FINANCIAL declined marginally to 35.3% from 36.1% in
PERFORMANCE FY2020. Liquidity coverage ratio

Bank Muamalat’s record breaking 46.8% Liquidity coverage ratio and net stable funding
improvement in PBZT and 7.0% y-o-y ratio stood at 133.2% and 109.3%, well above
growth in total assets were largely driven the required minimum regulatory levels,
by increased total income, strong financing while Common Equity Tier 1 ratio and total
growth and improved asset quality. With the capital ratio remained stable at 13.7% and
higher profitability recorded for the year, 17.4% respectively, providing a buffer against
return on equity (“ROE”) was 9.5% compared any potential weakening of asset quality once
to 6.8% in FY2020, and return on asset the extended relief assistance ceases.
was 0.96% compared to 0.72% in FY2020.
Cost-to-income ratio has also improved to
50.1% from 54.4% in the last financial year, as
a result of lower overhead expenses.

The higher pre-tax profit of RM256.6 million
(FY2020: RM174.8 million) was attributed
to a larger financing base and higher net
financing income. The Bank's financing
base grew by 14.5% year-on-year (“Y-o-Y”)
to RM20.9 billion, anchored by personal