Page 72 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

CORPORATE
BANKING

PERFORMANCE REVIEW
Among the challenges faced by CBD for the year were sizeable scheduled financing payment of RM494.4 million,
slow market recovery post-pandemic, the after-effects of the 2022 general election, stiff pricing competition within the
banking industry to secure working capital facilities’ utilisation, and retaining human resources. Nevertheless, CBD managed
to achieve a commendable growth for FY2023, continuing the strong financial performance over the past three years.
With the enhanced client relationship model and proactive business strategies, CBD’s asset base had increased by
RM667.4 million while credit risk had been maintained low as a result of extending financing to selected medium-risk customers.
CBD had also explored the capital expenditure requirements of customers’ supply chain ecosystem to identify new growth
opportunities. At the same time, timely recruitment for talent sourcing and improvements to remuneration packages
were conducted to retain skilled employees who were able to maintain and grow relationships within this segment.

As a result, a total of RM1.4 billion million in financing was approved and RM1.2 billion were disbursed by the end of
FY2023. As a further reflection of the Bank’s VBI commitment, the outstanding exposure on value-based initiatives increased
to RM3.8 billion in FY2023 from RM3.0 billion in FY2022 whereby financing released under the “platform for raising community
standard of living” accounted for the biggest exposure.

OUTLOOK & STRATEGY

CBD is positioned to sustainably grow in line with the industry average, with the focus on further increasing term
financing portfolio while maintaining the momentum in working capital financing portfolio. In alignment with
government objectives, CBD aims to further penetrate the impactful sectors including halal food-based industries,
public safety and health, infrastructure and transportation, and renewable energy in 2024.
To achieve these goals, CBD has articulated several strategies. Firstly, the Bank will prioritise offering secured term
financing to meet clients’ existing and future capital expenditures and projects. Additionally, CBD will target new clients,
particularly government-linked entities and public listed companies within the identified sectors.

The second strategy is to drive efficiency by refining client coverage models to maximise business relationships and
improving onboarding processes for new targeted clients.

Lastly, CBD is committed to cultivate leadership and human capital within the division to sustain ongoing business
growth momentum through building a skilled and capable internal team.

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