Page 60 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

RETAIL
BANKING

Auto Financing

The Bank’s auto financing, which represents 7.6% of Retail Banking’s total
Improved approval turnaround
financing portfolio, delivered sterling growth of 69.8% or RM631.12 million as
time through establishment of
at the end of 2023, surpassing the year’s target by 175%. Growth was buoyed by
Muamalat Auto Centre (MAC)
the automotive industry’s all-time high Total Industry Volume (TIV) of 799,731 units
under Monoline Structure; and
in 2023 as compared to 720,658 units in 2022. This was driven by pent-up demand,
EON’s Digital Sales Channel in
enticing new launches including many new EVs with competitive prices, as well
collaboration with EON BHD
as buyers taking advantage of the Government’s extension of the registration
deadline for sales tax exemption for all new vehicles booked by 30 June 2022 and
FY2023 Financing Assets:
registered by 31 March 2023. The emergence of online used car platforms have
RM1.54 also contributed to significant double-digit growth in used car sales during the year.
billion Harnessing strategic collaborations and improved dealer coverage, the Bank
(69.8% YoY) successfully expanded its presence within the top five brands in the new car
segment. Vehicle financing successfully increased market share for Non-National
Financing Income: segment from 38% in Dec 2022 to 47% in Dec 2023. By leveraging these
RM65.02 partnerships and enhancing the dealer network, the Bank was able to effectively
cater to the growing demand for auto financing and provide customers with
million competitive financing options. This was supported by stronger sales support
with more manpower resources, digital channels and the establishment of MAC’s
(81.1% YoY)
monoline processing for improved processing turnaround. MAC centralises Auto
Financing application processing, credit assessment, approval disbursment and
Total Disbursements: documentation under one roof. The establishment of EON’s Digital Sales Channel
RM832.98 towards providing specialised automotive financing solutions to EON customers and
auto financing application referrals to Bank Muamalat has also enhanced process
million efficiency with an approval turnaround time of just four hours.
(95.5% YoY)
These resulted in a substantial increase in application volume and approval volume
compared to FY2022.
Net Impairment:
0.13% The growth was achieved without any compromise to asset quality as evidenced
by the achievement of lower than industry average gross impaired financing ratio
(FY2022: 0.17%)
of 0.13% as at the end of 2023.

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