Page 73 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
OUR BUSINESS PERFORMANCE

TREASURY AND

CAPITAL MARKETS

The Treasury and Capital Markets division (TCM) operates through three core components:
Money Market, Fixed Income, and Foreign Exchange. These segments facilitate short-term
fund placing and taking, manage long-term debt instruments, and handle foreign currency
transactions, respectively. Together, these segments ensure effective risk management
and capitalise on market opportunities to achieve the Bank’s objectives.

TCM Total Revenue Fixed Income Foreign Exchange Money Market
Revenue
RM270.85 173,483.53 270,854.60 145,687.57 213,580.96

million 8,433.56 19,880.30 19,362.40 37,393.34
(53% YoY)
Recently launched Visa
B2B and CIB offerings

2022 2023 2022 2023 2022 2023 2022 2023

PERFORMANCE REVIEW Among the notable additions to TCM's product line-up
are the recently launched Visa B2B and CIB offerings.
In the face of an exceptionally challenging market landscape These innovative products have broadened our range
marked by unprecedented levels of volatility, economic of financial solutions, catering to the evolving needs of
deceleration, and sign of recessionary forecasts throughout our clientele. The Visa B2B product facilitates seamless
2023, the TCM division displayed resilience and strategic business-to-business transactions, streamlining payment
acumen in achieving a a commendable total revenue of processes and enhancing efficiency for corporate clients.
RM271.20 million for the fiscal year. This represented a Similarly, the CIB product provides comprehensive banking
significant 53% increase compared to the preceding year's services tailored to the unique requirements of commercial and
revenue of RM177. 30 million. institutional customers. These introductions underscore our
commitment to innovation and customer-centricity, positioning
Revenue growth for the year was led by the fixed income
TCM as a leading provider of cutting-edge financial products
sector, which has seen a notable increase of 47%, or
in the market.
RM49.60 million, fuelled by a 35% rise in coupon income.
This resulted in an impressive nine-fold increase in capital
gains, totalling RM20.30 million. Additionally, foreign
OUTLOOK & STRATEGY
exchange (FX) fee-based income had also played a part
in this growth, contributing to a three-fold increase of
RM12.60 million in FX revenue. By integrating innovative strategies, careful risk
management, and insightful market foresight,
Influenced by a proactive and forward-looking philosophy, TCM not only endured the challenges of market
TCM implemented a versatile strategy to manoeuvre through volatility but also emerged stronger, more resilient,
the intricacies of the market. This strategy was defined by and adaptable. Cultivating a culture of ongoing
an unwavering dedication to recognising and capitalising
enhancement and embracing strategic flexibility,
on emerging business prospects while strictly adhering to
TCM is poised to seize forthcoming opportunities
regulatory mandates. These proactive steps not only facilitated
and effectively address any obstacles that may arise.
TCM's pursuit of new opportunities but also served as a
This commitment ensures continuous growth and
protective measure against potential risks, establishing the
the creation of value for all stakeholders.
division as a stronghold of stability and innovation amidst
turbulent conditions.
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