Page 73 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 4 Our Business Performance 5 6 7 8 71

TREASURY AND CAPITAL MARKETS

Treasury and Capital Markets (TCM) division is a critical part

Revenue of the Bank’s wholesale banking division. TCM drives the
RM331,465 million Bank’s financial strategy through its key core assets classes:

( 22% YoY) Money Market, Fixed Income, and Foreign Exchange.
These combined segments play vital roles in strategic
management of funding and short-term liquidity needs,
optimising reserve management and portfolio of debt instruments, and facilitate foreign
currency operations. By actively navigating market conditions and implementing robust
risk management practices, TCM ensures the Bank’s financial stability and profitability while
seizing growth opportunities to support its overall goals.

Revenue
(RM Million) PERFORMANCE REVIEW
331.5 In 2024, TCM division demonstrated resilience and agility in navigating an uncertain
350 and evolving financial landscape, achieving a total revenue of RM331.5 million,
reflecting a 22.2% year-on-year growth.
300
250 271.2 Income from fixed income portfolio contributed much of the revenue helped by
proactive management and steady growth in sukuk assets. The Money Market
200
segment remained a steady contributor with dynamic liquidity management
150 ensuring stable returns. Fee based income grew 6.8% year-on-year driven by
100 strong performance in Foreign Exchange (FX) supported by gains in Fixed Income
activities. FX services continue to play a pivotal role, as heightened corporate
50 demand for risk management solutions let to a robust rise in FX fee-based income
- of 44% year-on-year.
FY2023 FY2024
A key highlight for 2024 was Bank Muamalat’s success in securing key mandates
from institutions, GLCs and other Corporates, further strengthening its position in
Fee Based Income
(RM Million) FX market. The Bank facilitated cross-border transactions and trade-related financial
solutions, reinforcing its role in supporting clients with seamless and efficient
50 42.9 FX services. These achievements underscore TCM’s ability to capture new
40.2 opportunities, deepen client relationships, and drive sustainable revenue growth.
40
Amidst ongoing market uncertainties and global economic headwinds, TCM remained
30
proactive in risk management, closely monitoring interest rate movements and
20 foreign exchange volatility. TCM’s ability to balance risk exposure while capitalising
on market opportunities positioned the Bank as a trusted financial partner, ensuring
10 continued growth and stability.

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FY2023 FY2024 OUTLOOK & STRATEGY

TCM will focus on strengthening resilience by leveraging emerging
technologies, enhancing market insights, and fostering greater collaboration
across teams. By continuously refining risk management processes and staying
agile in the face of market changes, TCM aims to not only navigate challenges
but also capitalise on new opportunities. This proactive approach will drive
sustainable growth, improve operational efficiency, and deliver greater value
to stakeholders ensuring long-term success.