Financing Distribution Grows Positively In 2023, Bank Muamalat Assets Reach IDR 66.9 Trillion

Bank Muamalat (Between)

JAKARTA PT Bank Muamalat Indonesia Tbk recorded a total bank only (udited) asset of IDR 66.9 trillion in 2023. This value grew by 9 percent year on year (yoy).

Bank Muamalat President Director Indra Falatehan said that Bank Muamalat's asset growth was supported by an increase in financing of 19 percent (yoy) to IDR 22.5 trillion.

The Third Party Fund (DPK) increased by 3 percent (yoy) to Rp47.6 trillion, where low-cost funds or Current Account and Saving Account (CASA) increased by 8.5 percent (yoy) to Rp23.7 trillion.

Indra said that although throughout 2023 there was a potential risk of economic slowdown and uncertainty in the global financial market, Bank Muamalat could record a positive performance.

"This is indicated by the continued growth of assets, financing and Third Party Funds (DPK). The profit before tax was recorded at Rp. 14.1 billion," he said in his official statement, Thursday, March 28, 2024.

Indra added that until the end of 2023, Bank Muamalat's total capital was recorded at IDR 7.0 trillion with a capital adequacy ratio of 29.42 percent, far above the regulator's regulatory threshold.

In addition, the quality of financing is also positive with the net Non Performance Financing (NPF) ratio dropping from 0.86 percent to 0.66 percent as of December 31, 2023.

"We will strive to increase profitability this year, one of which is by reducing the burden of margins through low-cost fund raising. We continue to maximize the acquisition of cheap funds through digital channels, namely the mobile banking application Muamalat DIN and internet banking services Madina," he said.

Indra said to spur the growth of low-cost funds, Bank Muamalat encouraged an increase in account opening online through the digital customer on board feature.

"Online account opening via Muamalat DIN has reached an average of 350 accounts per day or an increase of more than three times," he said.

In addition, Indra said that the DIN Muamalat has been used by more than half a million active users. Currently, Muamalat DIN has had 198 features since it was first launched in November 2019, with transactions reaching around 56.7 million and transaction volume reaching more than IDR 76 trillion by the end of 2023.

Madina users as a whole increased by 18 percent yoy or an increase of more than 1,500 users. In addition, Virtual Account (VA) services that are integrated with Madina also increased. So that the number of transaction frequencies of VA Bank Muamalat rose 12 percent (yoy) to more than 3.5 million transactions.

Focus on the retail segment

Indra said that in 2024, Bank Muamalat will continue its business refocusing strategy with a focus on the consumer retail segment. The segment is considered more in accordance with the competencies possessed by the pioneer of Islamic banks in the country.

"Bank Muamalat will focus on retail customers in several key segments, namely the Hajj and Umrah business segment, retirees, enterprises/corporations, hospitals, education and State Civil Apparatus (ASN)," he said.

Regarding the ASN segment, Indra said that Bank Muamalat had been officially appointed as a Salary Distribution Bank (BPG) based on the Decree of the Director General of Treasury of the Ministry of Finance Number 50 dated June 16, 2023.

"With this appointment, Bank Muamalat can cooperate and provide services for distributing salaries and banking facilities for ASN within the scope of state-owned agencies," he explained.

In order to support the above business strategy, Indra said Bank Muamalat increased all aspects of service, starting from the process of submitting easy financing, fast Service Level Agreement (SLA) and attractive margins.

According to Indra, product development and process improvement are the keys to creating competitive advantages to support business growth at Bank Muamalat.

For information as of December 31, 2023, Bank Muamalat has 239 office networks consisting of 80 Main Branch Offices (KCU), 155 Sub-Branch Offices (KCP), spread across 36 provinces in Indonesia and 1 branch office in Kuala Lumpur, Malaysia.