Page 30 - Bank-Muamalat-Annual-Report-2021

28 BANK MUAMALAT MALAYSIA BERHAD
ABOUT US OUR LEADERSHIP OUR STRATEGY OUR PERFORMANCE

PRESIDENT & CHIEF EXECUTIVE
OFFICER’S STATEMENT

SURMOUNTING THE YEAR’S CHALLENGES

The Bank’s RISE24 The significant improvements in financial performance were attained amidst a
challenging operating environment.
strategic direction
was recalibrated The re-introduction of restrictions and containment measures on most
economic sectors meant that financial institutions had to face the impact
to ensure that of economic slowdown on customers. In responding to these challenges,
performance the Bank focused on more stable and critical industries as well as tapped
into government programmes established to ease the financial burdens of
resilience and customers.
sustainable growth Net profit margin was further compressed following three occasions of overnight
can be achieved on policy rate (“OPR”) reductions. By the end of 2021, the OPR had reduced to
1.75% from 2.75% in Jan 2020. Although the reduction intended to provide a
all relevant fronts, more accommodative environment, it affected the yield curve. In response to
and that priorities this challenge, the banking sector focused on the growth of both non-fund
based income activities and better rated customers for retail and business
were refined to suit segments.
the needs of our
Competitiveness in the industry brought about the urgent need for cyber
customers. resilience and robust online engagement channels. Ease, speed and accessibility
of communication have become increasingly important, and today's digital
solutions need to be supported by robust data privacy and cyber security
practices.
In meeting the challenges of the day, the Bank’s RISE24 strategic direction was
recalibrated to ensure that performance resilience and sustainable growth can
be achieved on all relevant fronts, and that priorities were refined to suit the
109.3% needs of our customers.
Net stable funding ratio The main objectives for the year were to transform the Bank’s retail
and business banking, achieve operational excellence and process
improvements, as well as to institutionalise risk and compliance practices.
These were achieved through the implementation of the seven strategic focus
areas of RISE24.

50.1%
Cost-to-income ratio