Cagamas Annual Report
2024
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Group Financial Highlights
RM
2.4
BILLION
Total Revenue
2023: rm2.3 billion
RM
477.7
MILLION
Profit Before Taxation
2023: RM447.8 Million
RM
364.2
MILLION
Net Profit for the Year
2023: rm330.1 Million
RM
242.8
SEN
Basic Earnings Per Share (Sen)
2023: rm220.1 sen
RM
54.1
BILLION
Total Assets
2023: rm57.8 billion
RM
7.5
BILLION
Total Equity
2023: rm7.1 billion
Key Highlights in 2024
Liquidity Provision and Securitisation
Facilitated FI’s liquidity through the purchase of RM13.0 billion under the PWR scheme
Residential mortgages continued to dominate Cagamas’ portfolio at 95.8% of the net outstanding loans and financing
Provided further capital support to FIs with RM2.3 billion of Capital Management Solutions as of 31 December 2024
Mortgage Guarantee Programme
Rolled out a new scheme, First Home Mortgage Guarantee Programme (FHMGP), under the Mortgage Guarantee Programme
Successfully onboarded eight (8) participating banks since the FHMGP launch in June 2024
28 applications approved under FHMGP scheme, with a total financing value of RM11.2 million
Reverse Mortgage Programme
Expanded market reach for SSB and SSB-i programmes through engagements and strategic partnerships
55 loans cumulatively approved for senior home owners for SSB and SSB-i
Approval rate remained higher than 50% for SSB and SSB-i applications
Issuance and Fund
Raising
Top 3 corporate bond issuer in the conventional bond market for 5 years in a row since 2020
Entered into RM50 million 3-month Social Repurchase Agreement (“Social Repo”) with a local financial institution
Issued RM145 million each for Cagamas’ first 3-month and 6-month Islamic Commercial Papers (“ICPs”) with ASEAN Social SRI Sukuk status
CEO Insights: Year in Review 2024
Message from the Chairman
Dear Shareholders,
In 2024, the Cagamas Group of Companies (“the Group”) successfully navigated a dynamic economic landscape shaped by global monetary policy adjustments, inflationary pressures, and geopolitical uncertainties. The Group remained focused on ensuring stability in its financial performance, supporting market liquidity, and advancing our role as a key enabler of sustainable home financing.
Dato’ Bakarudin Ishak
Chairman
What We Do
Purchase with Recourse (PWR)
- 11.7% of net operating income
- 69.3% of total assets
Purchase without Recourse (PWOR)
- 35.3% of net operating income
- 12.8% of total assets
Capital Management Solutions (CMS)
- 1.8% of net operating income
- 4.2% of total assets
Liquidity Provision and Securitisation
Investment
- 45.8% of net operating income
- 13.5% of total assets
Issuance and Fund Raising
- 96.3% of total liabilities
Treasury and Fund Raising
Mortgage Guarantee Programme (MGP)
- 6.9% of net operating income
- 0.7% of total liabilities
Mortgage Guarantee Programme
Reverse Mortgage (RM) Programme
- 0.04% of net operating income
- 0.01% of total assets
Reverse Mortgage Programme
Our Business Imperatives
Financial Capital
To encourage home ownership through liquidity provision to financial institutions, our business and operations are supported by:
- Shareholders’ fund of RM7.5 billion and robust capital with Group Total Capital Ratio of 50.5%.
- Credit strength with global rating of A3 by Moody’s and local ratings of AAA by RAM Ratings and MARC Ratings, enabling access to competitively priced funding resources.
Human Capital
Our 112 employees are the heartbeat of our organisation. We prioritise their growth by investing in learning, development and providing a positive environment to drive them towards a culture of excellence, encapsulated by our Core Values, C.A.R.E. (Collaboration, Accountability, Resilience and Excellence).
Social & Relationship Capital
Continuously strengthen relationships with stakeholders to fulfil our mandates and empower communities to build long-term positive societal impact through the following:
- Contributing RM1.7 million towards community engagement initiatives.
- Broadening access to housing finance solutions through our inclusive mortgage guarantee, liquidity provision and reverse mortgage programmes.
- Strategic engagements with policymakers, regulators and global secondary mortgage market association members.
Natural Capital
Cagamas Sustainability Strategy as a guidance for our transition to net-zero:
- Green and Affordable Home Financing initiatives including issuance of green bonds and sukuk to finance purchase of green homes loans and financing.
- Energy efficient initiatives to reduce environmental footprint and greenhouse gas (GHG) emissions net zero transition plan.
Intellectual Capital
Our intellectual capital are our values, principles and standards that drives our behaviour and linked to our branding and credibility. These are built on:
- Developed risk management practices to attain optimum returns whilst operating within a sound business environment.
- Digital strategy to modernise infrastructure, digitalise product journey, enhance cybersecurity and achieve cost-efficiency to ensure long-term business sustainability.
What We Do
Liquidity Provision and Securitisation
Mortgage Guarantee Programme
Reverse Mortgage Programme
Treasury and Fund Raising
Our Sustainability Pillars
Promote Sustainable Home Ownership
Employer of Choice
Positive Societal Impact
Positive Environmental Impact
RM
46.7
BILLION
Total Financing Assets
(-9.6% YoY*)
RM
45.0
BILLION
Total Funding
(-8.0% YoY*)
RM
54.1
BILLION
Total Assets
(-6.4% YoY*)
RM
46.7
BILLION
Total Liabilities
(-7.9% YoY*)
RM
545.2
MILLION
Net Operating Income
(+4.2% YoY*)
RM
364.2
MILLION
Net Profit
(+10.3% YOY*)
Customers
- Purchased home financing in the secondary market totalling RM12.0 billion in 2024, equivalent to a total of 37,212 homes.
- Continued to encourage first-time home ownership via First Home Mortgage Guarantee Programme (“FHMGP”) that was launched in June 2024, replacing the discontinued Skim Rumah Pertamaku (“SRP”).
- More than 100,000 individuals/ households benefited through FHMGP, SRP, Skim Perumahan Belia since 2011; of which 91.0% are from the B40 segment.
- Signed Memorandum of Understanding with financial institutions to increase customer’s access to the reverse mortgage and guarantee programmes.
Investors
- Continued to promote Cagamas as the preferred investment choice through non-deal Asian regional roadshows in Singapore and Hong Kong.
Employees
- Equipped employees with 4,375 hours spent on learning and development, an average of 37 hours per employee, with training cost of RM1.1 million.
- Knowledge exchange for employees to learn financial institutions’ best practices and benchmarking study domestically and regionally in Indonesia and Japan.
- Refurbishment of Cagamas’ office to revitalise the spaces that will become the collaboration and innovation hub for Cagamas’ staff.
Communities
- Mobilised over RM1.7 billion of Sustainable Finance including RM1,523 million for affordable housing and RM150 million for non-carbon emitting industrial hire purchase receivables related to Small Medium Enterprises.
- Impacted the lives of more than 30,000 recipients through Corporate Social Responsibility initiatives and zakat distribution.
- 46 scholars benefitted from the Cagamas Scholarship Programme since 2016.
Regulators & Government
- Adhered to best-in-class practices to safeguard our assets.
- Complied with regulations to mitigate systemic risk.
Continue To Be Guided By 5-Year Strategic Plan (2024-2028)
CAGAMAS HOUSE OF THE FUTURE
Our Aspiration
The preferred market liquidity provider and centre of excellence in the housing finance ecosystem
Sustainability Report
Pillar 1:
Promoting Sustainable Home
Ownership
FY 2024 Achievements and Progress
Cumulatively purchased home financing in the secondary market totalling RM226.3 billion, equivalent to 2.2 million homes, since inception in 1986.
Provided mortgage guarantees to more than 100,000 individuals/households to own their first house through First Home Mortgage Guarantee Programme (“FHMGP”), Skim Rumah Pertamaku (“SRP”) and Skim Perumahan Belia (“SPB”) since 2011; of which 91.0% are from the B40 segment.
Cumulatively issued a total of RM4.9 billion of sustainability bonds and sukuk since 2020 with RM2.9 billion outstanding as of 31 December 2024. The proceeds from the issuances have been primarily allocated to eligible assets in line with the Cagamas’ Sustainability Bond and Sukuk Framework, of which, 93.8% of the proceeds were channelled to affordable housing.
Pillar 2:
Employer of Choice
FY 2024 Achievements and Progress
4,375 hours spent on learning and development, an average of 37 hours per employee.
Identified potential successors who are “ready” currently stand at 62%, with RM1.1 million was invested in learning and development under various disciplines and programmes.
The Talents Behind Cagamas
Comprise of the following gender composition, age group and employment duration in Cagamas:
Expanded knowledge exchange by sending the employees to learn best practices from financial institutions and conducted a benchmark study with Cagamas’ counterparts in Indonesia and Japan.
Five (5) final-year students from universities all over Malaysia were selected for the Cagamas Internship Programme.
Refurbishment of Cagamas’ office to revitalise the spaces that will become the collaboration and innovation hub for Cagamas’ future.
Pillar 3:
Positive Societal Impact
FY 2024 Achievements and Progress
Impacted the lives of almost 30,000 recipients in 2024 through our Corporate Zakat Wakalah Programme (“ZWP”) and Corporate Social Responsibility (“CSR”) initiatives.
Contributed approximately RM1.5 million for Cagamas Scholarship Programme which benefitted 46 scholars since 2016.
Purchased RM150 million of non-carbon emitting industrial hire purchase receivables via Purchase with Recourse (“PWR”), benefitting 511 Small Medium Enterprises (“SMEs”).
Entered its inaugural Social Repurchase Agreement for SMEs & issued first Islamic Commercial Paper with ASEAN Social Sustainable and Responsible Investment (SRI) Sukuk label.
Pillar 4:
Positive Environmental Impact
FY 2024 Achievements and Progress
As part of Cagamas’ Net Zero Initiatives, Cagamas, in partnership with the Asian Development Bank (“ADB”) and Ernst & Young (EY) hosted a stakeholder consultation workshop to drive the development and promotion of Green Affordable Housing and Green Mortgages in Malaysia, especially among the B40, M40 and female-headed household.
