Page 64 - Bank-Muamalat-Annual-Report-2021

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

COMMERCIAL

BANKING

Bank Muamalat’s Commercial Banking Division
(“CMBD”) manages the Bank’s Commercial and SME
Revenue financing customers, primarily non-public listed companies
RM57.5 million
95% Increase Year-on-Year and small & medium-sized enterprises. The products and
services offered include long and short-term financing

such as working capital financing, asset financing,
project financing as well as trade financing. As at
31 December 2021, CMBD managed RM1,215 million
Contribution to Bank’s
Revenue in assets of which 73% was for Commercial financing
5.1% customers and 27% was for SME financing customers.

Performance Review
Though MCO restrictions have become a hindrance to the
planned programmes during the year, CMBD managed to
coordinate several initiatives under strict economic conditions
during the pandemic. These included programmes with
Malaysia Automotive Robotics and IoT Institute, the Bank’s
Vendor Financing programme and Klinik Pusrawi Rakaniaga
licensing programme.

The pandemic obstacle also saw CMBD initiating new
channels of engagements such as working closely with
vendors to secure direct referrals, scheduling virtual
roadshows and engaging with existing customers to defend
the utilisation of working capital lines. Through these
programmes and initiatives, CMBD sustained its normal
practice of offering tailor-made solutions to customers and
continued to grow its asset base.

The higher growth of revenue by 95% was relatively driven by
the increase in assets. The increase in PBT was hampered by
the increase in the provision for credit loss. However, CMBD
managed to chalk up an impressive growth of PBT of RM19
million.
CMBD’s outstanding exposure on triple bottom line sector
(“TBL”) activities increased by 37% to RM1,090.83 million
(from RM796.17 million). Financing extended to the SME
segment accounted for 53% of the total TBL and the highest
growth increase by 100% was recorded for the Preserving
Natural Environment category.