Agrobank Disburses Record Financing Of RM10.44 Bln In 2024

KUALA LUMPUR, March 26 (Bernama) -- Agrobank recorded its highest financing disbursement of RM10.44 billion and achieved outstanding performance across all sectors in 2024.

Its president and chief executive officer, Datuk Tengku Ahmad Badli Shah Raja Hussin, said the bank’s financing disbursement showed significant growth of 25.46 per cent, surpassing the previous year’s growth of 15.97 per cent.

"The total financing portfolio increased by RM1.21 billion, showing a remarkable 72.08 per cent rise compared to the growth achieved in 2023.

"This increase was driven by the outstanding performance of three main business segments – the Small and Medium Enterprises (SMEs) segment, which amounted to RM547.68 million and was 161.08 per cent above target," he told a press conference on Agrobank’s 2024 Performance and 2025 Direction here, today.

He added that this also included the Ar-Rahnu segment with RM186.92 million (155.76 per cent above target) and the micro segment with RM181.21 million (100.67 per cent above target).

"For 2025, Agrobank targets a financing disbursement of RM12 billion, an increase of RM1.6 billion, and we will focus on self-sufficiency level segments, including the enhancement of automation production, the ruminant industry, and the micro industry," he said.

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In addition, he said the bank's deposit balance also showed healthy growth, reaching a five-year high of RM13.25 billion.

He pointed out that Agrobank's strong performance in deposit collection activities could be seen in its Current Account Savings Account (CASA) ratio, which stands at 44 per cent of total deposits, surpassing the banking industry average of only 31 per cent.

"Total income is on a positive trajectory, hitting RM1.26 billion with a growth of 9.32 per cent compared to the previous year – the highest achievement in three years," he said.

He added that this achievement resulted from stable growth in financing and income from investments which grew by 22.8 per cent, recovery efforts (+9.67 per cent), and fee-based income (+9.95 per cent).

Meanwhile, Tengku Ahmad Badli Shah said that last year, Agrobank had disbursed financing to Bumiputera entrepreneurs, with the bulk allocated to the SME segment totalling RM222.97 million (40 per cent), followed by the corporate segment (RM209.84 million; 38 per cent), and the micro segment (RM121.47 million; 22 per cent).

For this year, the bank targets financing for SMEs amounting to RM600 million, he said.

"For the SME segment, the support sector receives the highest allocation, amounting to RM96.38 million, while the livestock sector receives RM54.08 million. In the corporate segment, RM201.83 million is disbursed to the agricultural processing sector," he said.

Looking ahead to 2025, he said Agrobank will expand initiatives to stimulate the modernisation of the agricultural sector through affordable financial solutions and programmes that encourage the use of smart agricultural technology, precision farming systems, and Industry 4.0.

He added that the bank will also strengthen its commitment to financial inclusion, support the transition of the agricultural sector toward more sustainable activities, and integrate climate risk assessments into its core lending practices, thus attracting and developing talent to advance Agrobank’s development agenda in the agricultural sector.

-- BERNAMA