Page 78 - Bank-Muamalat-AR2020

76 BANK MUAMALAT MALAYSIA BERHAD About Us Our Leadership Our Strategy
About Us
ANNUAL REPORT FY2020

SUBSIDIARIES

Performance Review Strategies Moving Forward For MISB
For FY2020, MISB recorded a total revenue of RM4.8 million
and profit after tax of RM0.9 million. Shareholders’ funds of MISB is mindful of key determinants of equity market in the
MISB improved by 6%, contributed by profit after tax derived year 2021, such as:
for the year. MISB’s profit for the year was driven principally COVID-19 & Vaccines
by higher performance fees earned from both equity and
sukuk mandates, as the mandates generated higher-than- The outlook going forward is largely determined by the
benchmark returns for its clients, arising from opportunities risk of further resurgence of COVID-19 infections which
capitalised in both the equity and sukuk markets during the could lead to weaker business, employment and income
year. As at the end of FY2020, MISB recorded RM2.3 billion conditions. The progress of vaccination distribution and
in Assets Under Management (“AUM”). efficacy of vaccinations are other variables that need to be
monitored and responded to with agility. While the discovery
Assets Under Management (RM Billion) of the COVID-19 vaccines provides positivity on recovery
prospects, which also catapulted world equity markets; recent
2.68 3.12 3.19 3.29 2.40 2.32 spikes and virus mutation could dampen the whole recovery
timeline.

General Election

Uncertainties on the political front is rife as Malaysia heads
towards the next general election (GE). The Government
will remain pressured especially after the nation ends its
FY15/16 FY16/17 FY17/18 FY18/19 FY2019 FY2020 state of emergency on 1 August 2021. These factors are
expected to cause market jitters as the Prime Minister seeks
Revenue (RM Million) a fresh mandate soonest possible. Based on past GE trends,
the domestic equity market tends to react post-election as
4.49 4.40 3.88 4.84 compared to its historical price actions especially before
GE-13; where market reacts pre-election on promises and
goodies. Thus, pre-election rally might be subdued as the
market awaits the result of the election and stage a potential
relief rally or election sell-off afterwards.

MISB is working closely with selected foreign and
local fund houses to collaborate in launching unit trust
FY17/18 FY18/19 FY2019 FY2020 funds that embed VBI principles into its investment
strategies encompassing ESG, SRI, SDG, Waqaf,
Profit Before Tax (RM Million) and Green Investment, among others. VBI aims to
reorient Islamic finance business models towards realising the
0.66 0.74 0.94 0.95 objectives of Shariah that generate positive and sustainable
impact to the economy, community and environment through
practices, processes, offerings and conduct. This is also part
of MISB’s strategy in venturing into the retail market space.

FY17/18 FY18/19 FY2019 FY2020