Page 67 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
OUR BUSINESS PERFORMANCE

COMMERCIAL

BANKING

Revenue The Commercial Banking Division (CMBD) holds principal
RM103.4 responsibility for managing the financing needs of a diverse
clientele, encompassing state-owned agencies, commercial
million enterprises, and small and medium-sized enterprises (SMEs).
(48.8% YoY)
CMBD provides a comprehensive suite of financial products and
services, spanning both short- and long-term financing solutions
such as working capital, project funding, and trade finance. As of 31 December 2023,
CMBD oversaw a total asset portfolio valued at RM1,927 million, with 77% allocated
to commercial financing clients and 23% to Retail SME financing clients.

PERFORMANCE REVIEW essential for a thriving economy. Financing for initiatives
aimed at raising community standards of living witnessed a
In FY2023, the Bank’s CMBD targeted to expand its assets 28% increase, showcasing CMBD’s commitment to societal
and market share within a competitive banking landscape impact.
dominated by larger banks. The challenging market
condition was marked by an increase in the Overnight Policy CMBD’s ongoing collaboration with the Pahang State
Rate (OPR) from 2.75% to 3% in May 2023. Within this Government on Phase 2 of the Skim Pembiayaan Mikro
environment, CMDB remained vigilant through proactive Negeri Pahang (i-PUSH), continued to be popular,
monitoring of its asset quality, prudently managing its with 1,521 customers onboarded during the fiscal year.
credit risks in its financing portfolios and maintaining asset This micro-financing scheme is aimed at providing financial
quality proactively, with a focus on selectively acquiring support to underserved communities by empowering
creditworthy customers. Through strategic initiatives, including underserved individuals and businesses nationwide. This
personalised approaches to attract and retain high-quality commitment to financial inclusion is driving the Bank’s
clients, CMBD successfully broadened its customer base pursuit of similar collaborations with other state governments.
and met its growth targets.
As CMBD looks ahead, its commitment to sustainability
Financially, CMBD experienced significant revenue growth and long-term growth remains unwavering. The division
in FY2023, attributed to a RM369 million increase in will continue to monitor economic trends closely and adapt
assets and a RM312 million rise in total deposits. Notably, its strategies accordingly to navigate evolving market
there was a 135% surge in the Managed Retail Funds (MRF) conditions successfully.
segment during the year. Deposit expansion was primarily
driven by current accounts (CA) which brought in Financial Results
RM170 million. Profit Before Tax (PBT) for FY2023 stood
at RM25.9 million. PBT was hampered by the increase Financing Income Fee Income PBT
(RM’ million) (RM’ million) (RM’ million)
in provision for credit loss and lower profit spread due
to competition.
64.1 96.6 5.5 6.5 34.8 25.9
CMBD’s commitment to sustainable impacts continued
to be demonstrated by its increasing exposure to Triple
Bottom Line (TBL) activities. Notably, outstanding exposure
32.5 1.0
to TBL activities rose by 17%, reaching RM1,567.9 million (8.90)
in FY2023. Of this, 47.3% was allocated to SME financing
as SMEs play a significant role in driving economic growth
and development in Malaysia. They contribute to job creation,
innovation, and productivity improvements, which are 2022 2023 2022 2023 2022 2023

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