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74 BANK MUAMALAT MALAYSIA BERHAD About Us Our Leadership Our Strategy
About Us
ANNUAL REPORT FY2020
TREASURY AND
CAPITAL MARKETS
Meanwhile, the dividend income which represents annual dividend paid by MVSB
tripled to RM3.0 million in FY2020 as compared to RM1.0 million in FY2019.
This was driven by higher profit contribution from the Musyarakah investment
undertaken by MVSB. As a result of this profit increase, MVSB registered a higher
RM1.9 return on investment (ROI) as compared to FY2019.
Million Strategies Moving Forward For Investment Banking
With the slowing domestic and global economies, there will likely be intense
competition due to the scarcity of Capital Market deals. To address these risks,
Fee income for FY2020 from Investment IB intends to focus on its key corporate relationships to establish deal flows. The
Banking activities. (Increased by 29.26% persistent market instability and uncertainty may also lead to volatility in income.
as compared to FY2019) Despite the difficult environment, there are opportunities to secure Sukuk mandates
as potential Sukuk issuers explore fund raising exercises in the current low profit
rate environment. IB also sees continued opportunities to collaborate with other
The persistent market banks for larger capital market deals, as these banks seek to share balance sheet
exposure to minimise risk.
instability and
uncertainty may also The operating landscape in 2021 is expected to remain challenging as economic
lead to volatility in recovery is projected to be gradual and uneven amid COVID-19 containment
income. Despite the measures. IB’s strategy in the face of uncertainties and downside risks is to exercise
greater prudence and to remain vigilant. Going forward, continued focus on key
difficult environment, corporate relationships with potential issuers and other financial institutions will
there are opportunities to pave the way for deal flows in Debt Capital Markets.
secure Sukuk mandates
as potential Sukuk
issuers explore fund
raising exercises in the
current low profit rate
environment.
