Page 76 - Bank Muamalat_AR24

74 BANK MUAMALAT MALAYSIA BERHAD

INVESTMENT BANKING

The Investment Banking Division (IBD) focuses on capital
IBD:
Profit Before Tax markets and corporate finance advisory services as well as
RM1.1 million managing investments and third-party fund management

(FY2023: RM4.3 million) services via the Bank’s wholly-owned venture capital/private
equity arm, Muamalat Venture Sdn Bhd (MVSB). MVSB is
Muamalat Venture Sdn Bhd:
Profit Before Tax an Islamic venture capital management company which
RM5.7 million invests in high-growth stage companies, mezzanine and
(FY2023: RM5.5 million) pre-IPO companies as well as focusing on expansion of
its fund management services.

Fee Income IB registered RM1.9 million in fee income in FY2024, comprising arranger fees,
(RM Million) agency fees and management fees stemming from its investment banking activities.
The decrease in fee income from the previous year was mainly due to delays in the
15 completion of budgeted deals for the year due to external market factors.
12 -30.1%
9 On the other hand, the investment income from MVSB had continued to contribute
significantly to IB despite the decrease by 45.5% to RM6.0 million due to lower
6
2.7 shareholdings in the venture pursuant to annual capital buyback from a Musharakah
3 1.9 Mutanaqisah investment undertaken jointly with MVSB in an Ar-Rahnu business.
- Nonetheless, MVSB’s return on investment remains stable and continues to be above
FY2023 FY2024 Variance the Bank’s internal hurdle rate.
IB was recognised by the industry journal Alpha Southeast Asia for the award
Investment Income
(RM Million) category under best SRI Sukuk in Southeast Asia 2024 for its’ success in managing
the landmark and inaugural RM1.5 billion Islamic Sukuk Murabahah issue for a real
15 estate investment holding company under its’ new RM5.0 billion Sukuk Murabahah
12 11.0 -45.5% Programmes established on 2 September 2024. Separately, IB via MVSB was also
9 6.0 recognised by Islamic Finance News (IFN) as the recipient for the best Musharakah
6 Deal of the Year 2024 for its involvement in managing the bespoke fund for a
government organisation.
3
-
FY2023 FY2024 Variance OUTLOOK & STRATEGY

While challenged by key global developments driven by global monetary
policy tightening and geopolitical developments, IB will continue to focus
on our key corporate relationships with our existing network as well as
other financial institutions, investment banks or investment advisory firms for
deal flows in capital markets and advisory services as well as seeking for any
opportunities in growing MVSB’s investment portfolio.
As part of its business strategy for 2025, IB will continue to grow its’ advisory
services segments for its’ existing and new customers via cross selling
and service bundling i.e. financing or investment and financial advisory.
In addition, IB also will continue in growing its venture capital/private
equity fund management services under MVSB.