Strong Financial Performance from SME Bank in 2017
Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) recorded a commendable growth of 7.7% to RM6.5 billion in its financing portfolio for the year 2017 compared to a growth of 6.0% recorded by the banking sector. Wholesale & Retail Trade, Restaurant & Hotel, Manufacturing and Education, Health & Others secured the top three position of industries that received the support from SME Bank.
On the back of these strong numbers, SME Bank’s profit before tax (PBT) increased significantly by 104.3% to RM114.2 million from RM55.9 million and its net profit increased by 37.4% to RM74.0 million from RM53.9 million from the preceding year. The Bank’s strategies of striving towards sustainable growth, focusing in strengthening its account management and at the same time implementing effective cost management have contributed towards achieving this impressive performance. In addition, the Bank’s stable funding position and liquidity also contributed to the financial performance, which help ensure the Bank’s financial sustainability.
Supporting and ensuring the growth of the SMEs have always been SME Bank’s principal role and this is reflected in the RM2.2 billion financing approval recorded mainly to small and medium sized entrepreneurs. Playing the beyond financing role simultaneously, the Bank continues to intervene as a supportive partner to ensure the success of Malaysian SME entrepreneurs through various initiatives such as the Intervention Programme which saw The Bank assisted 245 companies in migrating upward.
These include the creation of new start-ups and establishments that registered growth in their profit, as well as increased number of employees and expansion to the export market. In tandem with this objective, SME Bank’s subsidiary, the Centre for Entrepreneur Development and Research Sdn. Bhd. (CEDAR) complemented the developmental role played by SME Bank when it successfully rolled out a total of 27 entrepreneurial training sessions benefitting 785 participants in 2017. Since its establishment in 2013, CEDAR has trained more than 34,000 participants in various level entrepreneurial development programs.
Nurturing the SMEs took a new meaning at SME Bank whereby focus, continuous and effective direct engagement programs were conducted at 14 locations nationwide involving more than 3,000 participants. This program provided SME Bank the avenue to interact at a personal level in understanding and prescribing effective solutions to the entrepreneurs. SME Bank is continuing the engagement program this year and as at reporting date, the program has been held at six locations nationwide.
As a point of reference for future and upcoming entrepreneurs, The Bank in collaboration with Astro Awani produced a new TV Program called SUKSES in 2017. A winner of the 2018 SME Development Award by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), SUKSES is a platform for intellectual discourse on issues pertaining to SMEs which include development, challenges and achievements of SME entrepreneurs. SUKSES Season 1 featured 20 successful entrepreneurs from various industries and SUKSES Season 2 will be aired in July 2018 at 8.30 pm on Astro Awani Chanel 501.
SME Bank’s journey to strengthen its presence as a capable financier and development agent was recognized with the certification of AAA/Stable/P1 Financial Institution ratings by the RAM Rating Services Berhad in August 2017. The ratings reflect the Bank’s strategic role in the government socioeconomic agenda to develop the SME sector. Other accolades awarded to SME Bank in 2017 included the Winner for the Best Exporter Programme under the Trade Development Category, Merit Award for Human Capital Development Category for Employees Capacity Building project and a Special Award for the Best Website. These awards were presented to the Bank during the ADFIAP 40th Annual Meeting held in Macao, China in 2017.
For 2018 and based on market development and needs, SME Bank is focusing on providing financing in the wholesale and retail, business services, education and healthcare and in manufacturing sectors. SME Bank will continue to offer innovative financing solutions in addition to various developmental programs with the objective of achieving the 41% contribution target to the nation’s GDP by the year 2020.
