CHALLENGES IN 2021 OPPORTUNITIES IN 2021 Repayment Assistance • W e channelled extensive financial assistance to our existing customers who were affected by the pandemic, by tapping the various relief schemes introduced by the government. • I n total we assisted 191 customers, with total exposure of RM2.0 billion. This included assistance through instalment deferment, as well as the rescheduling and restructuring of facilities. Property Overhang • T he soft economic conditions resulting from the COVID-19 pandemic saw a continued overhang in the property market. The overall value of overhang property, which includes those unsold and under construction, increased by 7.4% as at end of H1 2021 to RM109 billion in the space of just six months. (source: NAPIC). • E xcess supply of non-residential & commercial property e.g. office space & shopping complex remains uncertain. Restrictions on SCEL with TNB • W e face difficulties in growing our exposure in renewable energy despite the huge opportunity, due to nearly reaching our Single Counterparty Exposure Limit (SCEL) with TNB Group • W e pursued additional green opportunities by shifting our focus to the wider green technology and the green economy ecosystem. Improved Asset Quality • T o avoid deterioration in our asset quality position, we continued diligent monitoring to ensure that any potential loan distress issues were duly addressed during the repayment assistance period. • A s a result, our delinquent and impaired loan position has been lower than the industry averages, at 0.49% and 1.99% respectively as at Dec’21 Selective Project Financing In funding affordable home development projects, we worked only with reputable developers with strong track records under established schemes, such as PR1MA, PPA1M, RUMAWIP. In addition we maintained tight pre-sale conditions prior to disbursement and focused only on projects in strategic locations. BUSINESS REVIEW INTEGRATED ANNUAL REPORT 202 1 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information 91
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