Page 75 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
OUR BUSINESS PERFORMANCE

As a whole, MISB recorded RM2.48 billion in AUM, down 53.8% from FY2022. Though AUM decreased significantly
following the cessation of income tax exemption incentive for the retail money market fund from year 2022, MISB recorded
profit before tax of RM0.23 million principally due to increase in profit sharing income from private mandates and
distribution income. This led to a 1.1% increase in shareholders’ funds.

OUTLOOK & STRATEGY

The year 2024 is seen as a year of opportunity for long-term positioning despite the short-term uncertainty in the
equity market due to rapidly changing economic conditions. Taking into account that the equity market has been in
a downtrend since 2021, and some negatives have already been factored into the market, MISB aims to leverage on
improving macroeconomic environment to optimise returns across various asset classes. A key initiative will be to
diversify its asset classes to meet the evolving needs of its investors. Towards this end, MISB is committed to
collaborating with reputable partners to expand its product offerings and distribution networks as well as increase its
customer outreach.

As a responsible institution, MISB also prioritises its stakeholders’ welfare and is committed to contributing positively
to the communities it serves. Upholding the importance of Environmental, Social, and Governance (ESG)
considerations in investment decisions, MISB plans to launch unit trust funds that embed the principles of
Value-Based Intermediation (VBI) into its investment strategies. VBI aims to re-orient Islamic finance business models
towards realising the 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 of venturing
into the retail market.

As part of its commitment to digitalisation, MISB plans to launch an AI-powered online investment platform, allowing
customers to invest conveniently and securely from anywhere. These initiatives are part of MISB’s strategic plans to
continue its growth and success in the years ahead and further enhance its position as an innovator within the
fund management industry.

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