Page 73 - Bank-Muamalat-AR2020

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Governance
Our Performance Sustainability Statement Our Governance Our Numbers Other Information

TREASURY AND
CAPITAL MARKETS

REVENUE CONTRIBUTION
RM TO BANK’S TOTAL
262 Million FUNDING
%
22.9 Increase 49.2 %
Year-on-Year

TREASURY AND CAPITAL meeting overall regulatory liquidity Performance Review
MARKETS requirements such as short term
Liquidity Coverage Ratio (“LCR”) Notwithstanding, the TCM Division,
Challenges and longer term Net Stable Funding through its strategic planning and
Ratio (“NSFR”) while taking into anticipation of market direction, was
As the spread of coronavirus adversely consideration bank counterparties, able to optimise its high-quality liquid
impacted the world, markets grappled infrastructure and market outlooks. assets (HQLA) and recorded a gross
with the changed health, economic income of RM270 million, inclusive of
and business landscapes. In Malaysia, On monetary policy, BNM’s proactive a capital gain on securities of RM57.5
the Government-imposed lockdown measures saw robust OPR rate cuts million.
in March 2020 stalled the country’s of 125 bps from 3.00% to 1.75% and
economic activities and led to business Statutory Reserve Requirement (“SRR”) Throughout the year, the Money Market
operation diversifications. The Bank’s from 3.00% to 2.00% respectively with funding desk proactively managed the
Treasury and Capital Markets (“TCM”) Government securities instruments Bank’s cash flow, improving overall
operations were forced to split into used to meet the SRR minimum ratio. funding cost by reclassification of
teams working from three (3) separate The Ministry of Finance introduced a institutional clients from branches
locations namely Bank Muamalat’s series of economic stimulus packages to TCM for better customer service
Head Office, the Bank’s Disaster during the year to help combat the experience and to optimise the Bank’s
Recovery Centre and working from downward spiral of the economy. liquidity ratio. TCM’s total funding
home to ensure business continuity Stimulus packages worth RM305 reduced by 114 bps from 3.12% to
and non-disruption of operations. billion and a direct fiscal injection 2.16% with LCR and NSFR positioned
of RM55 billion were announced to at 115.87% and 107.96% at the end
The TCM Division diligently performed provide immediate assistance to lessen of FY2020 respectively. As at end of
its role in ensuring sufficient liquidity the burden of those affected by the the year, TCM provided 49.24% of the
throughout the period despite the pandemic. Bank’s total funding of RM21.40 billion.
lockdown restrictions and limitations.
For the year, TCM’s profitability and
funding strategies centered around