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Agrobank Records Highest Growth Of Financing Up To 16.4% For The Year 2016



KUALA LUMPUR – Agrobank, the bank that is mandated to empowering agriculture community, recorded remarkable growth of 16.4% with total financing value reaching up to RM8.7 billion as at November this year. This impressive performance is also the best achievement for Agrobank in the last five years.

According to Dato’ Wan Mohd Fadzmi Wan Othman, President/ Chief Executive Officer of Agrobank, the achievement is in line with the Bank’s commitment to provide access to a range of quality financial services at competitive rates, that is relevant with client’s needs, particularly for the agricultural community. Dato’ Wan Mohd Fadzmi also added that Agrobank is committed to support the government’s commitment to reduce the country’s dependence on imported food worth nearly RM45.2 billion last year.

“As a bank that understand agricultural sector better, Agrobank offers comprehensive financing solutions – a full value chain financing for agriculture, including upstream activities such as agriculture production and downstream activities such as processing and selling agriculture products to customers. For 2016, the premier agricultural financing sector, Agrobank recorded the highest financing value of RM5.14 billion with a growth of 15.3% compared to the same period last year with a total value of RM4.5 billion. Under financing for primary agriculture sector, food crops segment contributed the highest financing value of RM2.91 billion with a growth of 14% compared to the same period last year. The growth shows great prospects in agriculture and agro-food sectors with continuous demand locally and overseas despite current economic condition.

In supporting the government’s initiative to increase the food production, Agrobank now offers competitive financing products with low profit rates, for instance Food Production Credit Scheme, ‘Fund For Food (3F), the financing to purchase agricultural land, Hartani-i, Trade Finance services and many more.

Dato’ Wan Mohd Fadzmi also added, the bank’s outstanding performance was also driven by the strengthening of the Malaysian economy which remained resilient with gross domestic product (GDP) is projected to grow 4.4% in 2016 and 4.5% in 2017.

Despite current global economic situation, Agrobank is satisfied with the performance this year. “Prospects for agriculture and agro-based industry in 2017 is expected to remain favourable, with rising demands for local and export market, especially for the agro-food sector. The focus now is to develop and strengthen the country’s food production capability and to drive export of halal/agri products. Agrobank will continue to support the government’s efforts to increase local food production and to balance the deficit of imported foods,” said Dato ‘Wan Mohd Fadzmi.

In addition, Dato ‘ Wan Mohd Fadzmi also said that Agrobank will continue to scale up risk management and best practices in lending, in line with responsible lending principles.
In 2016, Agrobank has launched new products, including financing programme designed for person with Disabilities (PWDs), known as Agro Bakti, and the launch of takaful protection scheme with haj by proxy benefits, Takaful Mabrur.

In addition, 2016 has been a very significant year for Agrobank with various international recognition and awards for its developmental and financial inclusion initiatives particularly for the ‘unserved’ and ‘underserved’ community. Among the awards received by Agrobank are:

  1. Award by ADFIAP (Association of Development Financing Institutions in Asia Pacific) received in Samoa for Agrobank outstanding efforts in financial inclusion particularly for the agricultural community and underserved communities.
  2. The Karlsruhe Sustainable Finance Awards for Outstanding Sustainable Project Financing to recognize the success of the bank’s Paddy Credit Scheme. The award ceremony was held in Germany
  3. The Global Good Governance Awards 2016(3G) held in Istanbul Turkey for category ‘3G Financial Services Award ‘. The award was given for the bank’s continuous efforts in improving financial inclusion.
  4. Agrobank’s Hartani-i is acknowledged as the Critics’ Choice for Best Islamic Product for Agriculture Finance at the Islamic Retail Banking Award held in Dubai.

To top it off, Dato’ Wan Mohd Fadzmi also received the ‘CEO of The Year’ Award at the Global Islamic Financial Award (GIFA) 2016 as recognition of his strong leadership in transforming Agrobank into a full-fledged Islamic bank within three years’ time.

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