Bank Muamalat Malaysia Berhad (Bank Muamalat) registered a record profit before zakat and taxation (PBZT) of RM306.7 million for the financial year ended 31 December 2022 (FYE2022), representing a growth of 20.3 per cent from the RM254.9 million posted in the previous corresponding period.
Bank Muamalat President and Chief Executive Officer Khairul Kamarudin said: “The stellar performance registered in the financial year ended 31 December 2022 was largely driven by increased distributable income and robust financing growth in tandem with the Group’s business growth and improved asset quality.”
Khairul said the Group also registered growth in total assets, which expanded by 14.4 per cent to RM31.5 billion, compared to RM27.6 billion in the previous financial year. This was contributed mainly by the 16.2 per cent growth or RM3.3 billion increase in total financing to customers, from RM20.7 billion to RM24.0 billion, as of 31 December 2022, mainly from the consumer banking segment.
The Group asset quality remained low, with Gross Impaired Financing standing at 0.85 per cent as of 31 December 2022, a marginal increase as compared to 0.83 per cent registered as of 31 December 2021.
The Group’s Common Equity Tier-1 Ratio and Total Capital Ratio remained stable, closing at 12.5 per cent and 17.6 per cent, respectively, well above regulatory requirements.
The Bank will remain mindful of the evolving economic outlook in 2023. The effect of past interest rate hikes by the major central banks in advanced countries will likely have a pronounced impact on global liquidity.
Additionally, the ongoing war in Ukraine and heightened geopolitical risks are expected to have a significant bearing on commodity prices and markets and business sentiments.
Notwithstanding that, the reopening of China’s economy and an accommodative monetary policy stance by the Bank Negara Malaysia would allow the financial intermediation activities to grow sustainably.
In addition, a higher allocation for development expenditure totalling RM97 billion, as indicated in the recent Budget 2023, would catalyse domestic demand. Such a backdrop would provide a conducive ecosystem for the Group to thrive, leveraging its unique positioning and offering within the Islamic finance sphere.
“Bank Muamalat is ready to navigate these challenges with support from our staff and stakeholders to record another important milestone in the new financial year 2023”, added Khairul.
