Page 74 - Bank-Muamalat-Annual-Report-2021

72 BANK MUAMALAT MALAYSIA BERHAD
ABOUT US OUR LEADERSHIP OUR STRATEGY OUR PERFORMANCE

TREASURY AND

CAPITAL MARKETS

Through active strategic planning and
anticipation of market direction, TCM was
Revenue Contribution to Bank’s able to optimise its HQLA and able to record
RM162.4 million Total Funding
40.6% a gross funded income of RM159.4 million.

On a fixed income perspective,
Treasury and Capital Markets (TCM) took a
defensive portfolio approach to safeguard
the Bank from any adverse market
movements against the Bank’s capital.
TCM vigilantly managed its portfolio by
maintaining minimum high-quality liquid
assets (HQLA) and keeping the duration short.
The portfolio was able to withstand the
market’s volatile movement spike in the
last quarter of the year. Through active
strategic planning and anticipation of market
direction, TCM was able to optimise its HQLA
and record a gross funded income of
RM159.4 million.
The Money Market funding desk continued
to proactively manage the Bank’s cash flow
by reclassifying depositors accordance to its
TREASURY AND CAPITAL MARKETS
liquidity ratio run-off rate. TCM leans towards
corporates for optimum liquidity ratio and
Performance Review
concurrently reduces funding cost despite
Treasury and Capital Markets (TCM) continued to manoeuvre around significant increments in the Bank’s total asset
uncertainty market condition due to prolong pandemic and lead to slower portfolio. As at end of 2021, TCM provided
economic activities. In addition, disruptions in the supply chain had caused 40.6% of the Bank's total funding.
inflationary pressures to spike. To curb inflation from soaring, the US Federal
Foreign Exchange (FX) contributed to TCM’s
Reserve and major central banks signalled the possibilities of aggressive
fee income through consistent engagements
interest rate hikes, requiring TCM to monitor market movement closely to
with clients despite the pandemic and
ensure competitiveness and also to accommodate and provide advisory to
supply chain shortcomings. The bulk
clients when required.
of the fee was from government flows,
Domestic key events that impacted responses during the year included the followed by corporate and government-
change at the helm of the country's leadership, FTSE Russell’s decision to linked companies. This brought in a total
maintain the weightage of MYR bonds in the World Government Bond Index FX volume of RM5.3 billion during the year.
(WGBI) and Malaysia’s reaffirmed sovereign rating by Standard & Poor’s and The implementation of the Bank’s digital
Moody’s respectively. infrastructure would enable the desk to
widen its customer reach as well as expand
its cross border remittance capabilities.