Bank Muamalat expects to maintain growth at 7% for FY17

KUALA LUMPUR: Bank Muamalat Malaysia Bhd expects to maintain its profit growth of 7% for the financial year ending March 31, 2017 (FY17) -- the same level achieved in the previous financial year. 

Chief executive officer Datuk Mohd Redza Shah Abdul Wahid said the growth was expected to be moderate on the back of slowing economy and rising cost of living. 

“The growth would continue to be driven mainly by consumer financing and probably about 30% to 40% from the corporate sector,” he told reporters following the launch of Muamalat Gold-i in Kuala Lumpur on Tuesday. 

He said with the current market condition, the bank saw a small spike in non-performing loans but they were still less than 10% and were considered manageable. 

In the meantime, he said the bank would continue to look for ways to improve its performance by diversifying its products and services. 

On the collapse of Bank Muamalat’s proposed merger with Malaysia Building Society Bhd, he said the shareholders would certainly look for ways to add value to its products and find alternatives, including listing. 

However, it is still not the right time for listing, he said, adding that, “We have no specific indicators but when the market turns we will surely look for more alternatives for the shareholders. 

“What is more important is that when we see the market is slowing we could maintain our financial performance in current form.” 

Bank Muamalat is a 70%-owned subsidiary of DRB-Hicom Bhd while the remaining stake is held by Khazanah Nasional Bhd. 

DRB-Hicom is required to pare down its stake in Bank Muamalat to 40% to comply with Bank Negara’s requirements, but it has been delayed for a few years. 

DRB-Hicom is still dealing with Bank Negara over the issue, Mohd Redza said. - Bernama