Cagamas Holdings Berhad, the parent company of Malaysia’s national mortgage corporation, reported a pre-tax profit of 477.7 million ringgit ( US$110.49 million ) for 2024, continuing a positive financial trajectory since 2021, with improvements across key financial indicators.

The robust financial performance was achieved amid challenges in the domestic market and uncertainties in the global economy, the group said at its 18th annual general meeting on Tuesday ( April 29 ).

Total capital ratio rose to 50.5% from 43.1% in 2023, reinforcing its strong capital position and creditworthiness.

Overall performance was bolstered by better contributions from Cagamas Berhad ( 310.9 million ringgit ), Cagamas MBS Berhad ( 118.2 million ringgit ), and Cagamas SRP Berhad ( 48.6 million ringgit ).

The group continues to deliver on its mandate of providing liquidity support to financial institutions. In 2024, 13 billion ringgit of funding under its Purchase with Recourse ( PWR ) programme was provided to financial institutions, with 3.5 billion ringgit allocated to sustainable PWR assets. This is in line with the group’s goal of having 10% of total assets classified as sustainable and green by 2030 as part of its environmental, social and governance ( ESG ) agenda.

Cagamas raised 21.3 billion ringgit through bonds, sukuk, and money market instruments. Notable issuances included 290 million ringgit in short-term Islamic debt securities with a social label and a 50 million ringgit social repo agreement aimed at financing small and medium enterprises ( SMEs ).

Sustainable finance

Responding to rising investor interest in ESG assets, Cagamas issued 1.2 billion ringgit in green and sustainability-linked bonds and sukuk in 2024.

At the same time, the group broadened access to sustainable, green, and affordable housing through innovative products such as reverse mortgages, SME-focused funding, and guarantees for energy-efficient retrofitting. Plans are also underway to introduce fixed-rate financing and develop national green housing standards in collaboration with industry stakeholders.

To accelerate action towards achieving ESG objectives, Cagamas is deepening its regional and global partnerships with financial institutions and supranational organizations. These efforts will support knowledge sharing and advocacy for the continued growth of Malaysia’s housing finance ecosystem.

“As we move forward, we remain steadfast in our mission to embed ESG into every aspect of our operations while continuing to deliver value to stakeholders,” says group chairman Bakarudin Ishak.