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KUALA LUMPUR: SME Bank recorded total assets of RM11.4 billion and an 8.3 per cent increase in gross financing portfolio to RM8 billion in the financial year ended 2021, despite a challenging landscape.

The bank said this was due to its ability to be quick and agile in adapting and responding to the changing environment.

Chairman Datuk Seri Nazir Ariff said the bank recorded a profit before tax and zakat (PBTZ) of RM55.3 million in 2021, surpassing the target of RM28.4 million.

"This was contributed by sound financial discipline, robust risk management approach and strong capital position," he said in a statement today.

Nazir said in 2021, the bank approved a total of RM3.5 billion in financing, benefitting 1,825 small and medium enterprises (SMEs).

"Out of the total financing approved, 46.4 per cent was for small businesses and 35.2 per cent was for medium-sized businesses. The remaining balance which made up 8.4 per cent and 10.0 per cent was for micro enterprises and large enterprises, respectively," he said.

SME Bank group president and chief executive officer Aria Putera Ismail said the bank continued to thrive in 2021 and demonstrated its capacity to deploy exceptional resources and human capital to respond to our customers' immediate needs.

Aria said in 2021, the bank approved more than RM400 million from the government's Penjana stimulus package.

"Under the Bank Negara Malaysia's Targeted Relief & Recovery Facility (TRRF) initiative, the bank approved RM150 million financing to affected customers in 2021 and to date Bank Negara has approved a total fund of RM450 million due to the strong demand.

"Other significant efforts include assisting 175 micro and small entrepreneurs under the Lestari Bumi Financing (LBF) amounting RM63.3 million, approved RM87.8 million to seven entrepreneurs under the Jaguh Serantau programme and through MySMELady, 12 recipients received a total of RM8 million financing," he said.

Acknowledging certain industries were badly affected by the Covid-19 pandemic, Aria said the bank, through the SME Bank Relief Program 2.0 (SRP 2.0), was able to assist 311 eligible customers with a financing value of RM248 million.

The bank also offered moratorium assistance for up to six months as well as an extension of the payment period up to 12 months effective July 2021 under the SRP Pemulih initiative.

"This has benefitted 2,751 customers, involving total outstanding financing valued at RM4.37 billion," he said.

Source: https://www.nst.com.my/business/2022/06/809587/sme-banks-assets-grow-rm114bil-gross-financing-rm8bil-2021