Page 75 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 73
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

The Correspondent Banking Unit (CB) represents an essential TCM expects the HQLA portfolio to be pressured in FY2022
component for the global payment system, specifically in line with rising yields and higher sovereign bonds supply
to facilitate clients for international payment and trade as the budget remains expansionary with spending projected
transactions. CB has constantly engaged with global to increase. Regardless, demand for local assets will remain
counterparties as a subsequence of the enhanced global supported from a well-diversified base of investment
KYC monitoring process, and to ensure fulfilment of the institutions, interbank and foreign participants. As such,
Service Level Agreement. portfolios will continue to be managed by maintaining
minimum HQLA and short durations. Apart from that, an
Portfolio Size vs Duration improved foreign exchange infrastructure and eco-system will
be expedited to help boost fee income.
6,000 3.00
INVESTMENT BANKING
2.90
5,000
2.80
4,000 Investment Banking (IB) focuses on Islamic Capital Markets
2.70 deals as well as managing the Bank’s private equity investments
3,000 2.60 via our private equity arm, Muamalat Venture Sdn Bhd (MVSB).
2.50
2,000
2.40 Fee Income (RM Million)
1,000
2.30
1.904 1.087 -42.9%
- 2.20
2019 2020 2021
Size (RM Million) Duration (Years)

OPR vs MGII10Y
2020 2021 Variance %
4.00%
3.50%
3.00% MVSB Income (RM Million)
2.50%
2.00% 8.670 9.548 +10.1%
1.50%
1.00%
0.50% OPR MGII10Y
0.00%

Moving forward, TCM maintains the view that growth
prospects are set to improve as fiscal support has stepped
up sharply, with most economies having adapted to social
distancing and strong vaccination rollouts. In Malaysia, 2020 2021 Variance %
stronger GDP is forecasted in the range of 5.5% to 6.5%
driven primarily by expansion propelled by Budget 2022,
normalisation of economic and social activities, and resumption
of projects with high multiplier effects and strong external
demand.