Page 33 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
MESSAGE FROM LEADERSHIP

PRESIDENT & CHIEF EXECUTIVE OFFICER’S

STATEMENT

MACRO LANDSCAPE REALISING ‘BETTER LIVES, TOGETHER’
The global macroeconomic landscape Alhamdulillah, Bank Muamalat’s core commitment to serving all stakeholders
in 2023 presented numerous and realising 'Better Lives, Together' led to a host of FY2023 achievements.
challenges. Bank Negara Malaysia’s
Delivering Sustainable Value to Shareholders
Economic and Monetary Review 2023
highlighted the impacts of higher
Our good balance sheet management bolsters investor confidence and fosters
interest rates and inflation, slowing
long-term investments. Diligent resource management has resulted in resilient
global growth to 3.1%. Geopolitical
financial performance that consistently delivers sustainable shareholder returns
tensions, including the Ukraine-Russia
through profitability.
war and unrest in Gaza, further
exacerbated market volatility. Despite the volatile macroeconomic environment and new regulatory priorities,
Bank Muamalat achieved a commendable Profit Before Tax and Zakat (PBTZ) of
Weakened external demand and
RM295.6 million for the fiscal year. This financial performance was accentuated
commodity production disruptions
by several encouraging industry accolades and awards as we continue on our
led to rising living costs. However,
journey to be the strongest Islamic bank by 2026.
supportive government policies and
initiatives from the Madani Economy Through steadfast adherence to RISE26+ strategic initiatives, total revenue grew
framework anchored the nation’s by 33.2% to RM1.8 billion, underpinned by a 30.3% increase in financing income
domestic demand. This, together with and a growth of 7.1% in net income. The robust growth in revenue reflected
a resurgence in tourism activities led the Bank’s focus on expanding financing activities, driving total gross financing to
to a 3.6% GDP growth in FY2023. increase by 17.7%, or RM4.3 billion. This growth was mainly fuelled by the household
sector, particularly financing for residential property purchases and personal
Meanwhile, the banking sector
financing. The household sector contributed around 71.2% of total financing in
continued to face pressures from
FY2023. Affordable housing financing guaranteed by Syarikat Jaminan Kredit
increased competition for deposits and
Perumahan Berhad (SJKP) played a crucial role, earning Bank Muamalat the
ongoing regulatory changes. The rise in
Anugerah Prestasi Terbaik 2022-2023 award.
the overnight policy rate (OPR) to 3%
contributed to the overall challenges The Bank’s efforts to secure and maintain a strong deposit base paid off,
in maintaining net profit margins as total deposits and investment account of customers increased by 24.1%,
across the industry. Additionally, the or RM6.4 billion. Current Account and Savings Account (CASA) deposits grew
introduction of digital banks, following by 14.0% or RM1.3 billion, which enhanced the Bank’s CASA ratio to 31.2%.
the issuance of five digital banking This growth in deposits indicates strengthened customer trust and a
licenses in 2022, further intensified customer-centric product range.
competition within the sector.

CASA deposits grew by
14.1% or RM1.3 billion,
enhancing the Bank’s
CASA ratio to 31.2%.

31