Page 68 - Bank Muamalat_AR24

66 BANK MUAMALAT MALAYSIA BERHAD

COMMERCIAL BANKING DIVISION

In terms of asset quality and risk management, CMBD reported
a 17.5% improvement compared to 2023, reflecting robust OUTLOOK & STRATEGY
credit risk management practices and disciplined portfolio
oversight. The division continues to maintain its focus on
proactive monitoring and managing credit risks within its Looking ahead, the Commercial Banking Division
domain. (CMBD) is strategically positioned for continued
innovation and growth, aligning its ambitions with
Significant strides were also made in digital transformation. Bank Muamalat’s broader goal of becoming the
CMBD is intensifying its digitalisation efforts, including strongest Islamic bank. This forward-looking approach
enhancements to the Muamalat Application Platform (MAP). is underpinned by several key initiatives and a
This platform serves as a critical digital gateway, enabling commitment to evolving its role beyond that of a
SMEs to efficiently submit and manage their financing traditional financier.
applications. This aligns with a broader strategic shift
towards a cloud-based operating model, leveraging CMBD’s strategic objectives include:
Google Cloud, Mambu’s digital core banking platform, and Digital Banking for SMEs: Enhancing digital
Backbase’s engagement banking platform to deliver banking capabilities to ensure seamless and
personalised digital Islamic banking services.
faster application and onboarding processes,
Key Initiatives in FY2024 providing a modern alternative to traditional
banking methods.
Target FYE2024 Holistic Financial Partnership: Evolving into a
FY2024
comprehensive financial partner for customers
Defend RM300 RM400 by offering a wider array of integrated solutions,
Cooperatives Million Million 133% including deposit, leasing, payment, and trade
Segment
solutions, in addition to core financing.
Grow Government RM112 RM132
Awarded Contract Million Million 118% Trusted Partner in ESG Transition: Establishing
Financing itself as a trusted partner to customers
navigating the shift towards greener and
Grow Government RM300 RM323
Guaranteed Million Million 107% ESG-related business operations and solutions.
Financing Assets Personalised Customer Services: Maintaining a
strong focus on delivering personalised services
Several notable developments were recorded during the to all customers, irrespective of their business
year. In 2024, CMBD successfully reintroduced Ijarah (leasing) size.
financing, a product that had been on hiatus since 2009.
Early demand for this offering has been encouraging, with Competitive Positioning: Developing
projected financing expected to exceed RM100 million by competitive packages designed to attract and
the end of 2025. Additionally, the division has fortified its onboard better-rated customers from other
strategic alliances, entering into notable collaborations on financial institutions.
working capital financing programmes with entities such
as Credit Guarantee Corporation Malaysia Berhad (CGC)
and TERAJU. These partnerships are designed to deliver
guaranteed financing and expand access to crucial financial
resources, particularly for underserved Micro and SME
segments within the community.