Radzif leaves legacy in transforming SME Bank
After seven years helming SME Bank Bhd, Group managing director, Datuk Mohd Radzif Mohd Yunus, who retired end- June, 2017, left behind an impeccable legacy in transforming the bank, consolidating its finances and taking it to greater heights.
Radzif’s financial acumen was clearly manifested in the significant improvement in the bank’s collection rate since he took over in 2010, reducing its non-performing loans from 38 per cent to the current eight per cent.
He had successfully helped the small and medium enterprise (SME) lender recoup its losses and raised its shareholders’ fund to RM1.43 billion in 2016 from RM765 million in 2010.
His efforts earned him the ‘Outstanding CEO’ Award in 2016 from the Association of Development Financing Institutions in AsiaPacific, and under his leadership, the bank won 23 local and international awards.
“When I first joined the bank, the perception of it was not favourable and many stakeholders complained about service deliveries.
“However, we managed to turn around close to 40 to 50 per cent of companies between 2011 and 2012,” he said in an interview with Bernama News Channel.
He said when he began his tenure at the bank, its capital was down by RM600 mil- lion from an initial paid-up capital of RM1.35 billion.
However, via his and his team’s tireless efforts, the bank was able to meet its target within the stipulated timeframe with a paid-up capital of RM1.4 billion, derived from the group’s profit, he said.
“And now, the SME Bank is in a stronger position to play its mandated role to nurture and develop SMEs,” he said.
As of December last year, the bank had approved loans worth RM26 billion, while its actual financing portfolio stood at RM6 billion.
By serving the underserved and unserved market, Radzif said, the SME Bank could increase its market share to above 40 per cent from its current 39 per cent over the next five years.
SME Bank is funded by internal funds, dedicated funds (from the government) and the market via corporate deposits and bond issuance.
The bank, through its ‘Online Business Financing’ initiative, had approved loans amounting RM11.02 million to- date. It has given loans ranging from RM20,000 to RM500,000 to 82 entrepreneurs. SME Bank has
also participated in the Montreal Group ( TMG) global forum for stateowned development banks which focused on assisting SMEs.
“The bank has emerged as a strong development financial institution with a prosperous future.
“I believe that the bank is one of the finest in the region and it has been a privilege to lead this wonderful organisation through both the best and challenging times in our banking industry,” he said.
Radzif was also the chief architect in the Five-Year Transformation Roadmap ( 2010-2015), with the objective of taking the bank to greater heights.
“I enjoy transformation, that’s my forte, and should there be any opportunity in any organisation, I would definitely grab it,” he said.
Before joining the bank, he had served as the National Heart Institute’s ( IJN) Chief Executive Officer from 2003 to 2010, and was Chief Executive Officer of Tabung Haji Properties ( THP) from 2001 to 2003.
Radzif, dubbed as the ‘transformation man’, managed to turn the insolvent THP into a profit-making organisation in 2002, and helped IJN earn its international accreditations while increasing its shareholders’ fund from RM170 million in 2002 to RM426 million in 2008.
Radzif said he was looking forward to greater challenges, keeping his eyes out for ailing companies for him to transform, just like he did with the SME Bank, IJN and THP.
The Malaysian corporate sector and the financial sector in Malaysia could definitely do with his talents to turn around financiallytroubled companies.
When I first joined the bank, the perception of it was not favourable and many stakeholders complained about service deliveries. Datuk Mohd Radzif Mohd Yunus SME Bank Bhd Group managing director