Page 392 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

BASEL II
PILLAR 3 DISCLOSURE

4.0 CREDIT RISK (GENERAL DISCLOSURE) (CONT’D)
Credit approvals are performed under a formal delegated approving structure comprising a hierarchy of approving authorities
with clearly defined scope and limits. The Credit Committee (“CC”) is the main management-level committee involved in
the approval of credit proposals (for amounts exceeding that of the lower individual authority limits) and the monitoring
and management of distressed financing assets.

The Bank conducts regular review of its credit exposures based on portfolio segments and concentrations to ensure
that these exposures are kept within the Board-approved risk appetite and risk tolerance levels. These review and
analysis reports also provide the basis for ongoing risk management strategy and policy formulation.
Credit Risk Exposures and Credit Risk Concentration
Table 8: Credit risk exposures and credit risk concentration by sector analysis

Finance, Agriculture,
takaful manufacturing,
Government and wholesale, Construction Transport
and statutory business retail and and Storage and
Group bodies services restaurant real estate Communication Household Others Total
31 December 2023 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

On balance sheet exposures
Cash and short-term funds - 3,039,191 - - - - - 3,039,191
Financial investments at fair value
through profit and loss - 5,112 - - - - 28,595 33,707
Financial investments at fair value
through other comprehensive
income 4,635,767 700,591 595,821 61,400 - - 511,887 6,505,466
Financial assets at amortised cost - - 116,871 - - - - 116,871
Islamic derivative financial assets - 12,819 - - - - - 12,819
Financing of customers 932,836 2,175,152 2,282,361 2,060,395 174,721 20,158,899 563,280 28,347,644
Statutory deposits with
Bank Negara Malaysia 583,809 - - - - - - 583,809
Other financial assets* - - - - - - 115,359 115,359
6,152,412 5,932,865 2,995,053 2,121,795 174,721 20,158,899 1,219,121 38,754,866

Commitments and contingencies
Contingent liabilities 86,689 63,660 171,419 424,536 172,983 3,988 78,168 1,001,443
Commitments 65,303 141,698 296,178 278,498 36,416 845,440 638,479 2,302,012
Other Miscellaneous Commitment
and Contingent Liabilities - 753 2,632 22,678 150 4,767 29,060 60,040
Islamic derivative financial instruments - 1,350,626 936,737 - - - - 2,287,363
151,992 1,556,737 1,406,966 725,712 209,549 854,195 745,707 5,650,858
Total credit exposures 6,304,404 7,489,602 4,402,019 2,847,507 384,270 21,013,094 1,964,828 44,405,724

* These balances exclude balances which are not within the scope of MFRS 9, Financial Instruments.

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