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189Chairman’s Review – Business Operations ReviewCapital Market OperationsTreasuryThe Public Bank Group’s treasury operations broadly includethe soliciting of deposits from the retail and wholesalesectors and the marketing of foreign exchange relatedproducts to both retail and corporate customers. TheGroup’s treasury operations also include the management ofliquidity risks and interest rate strategies in line with policiesestablished by the Group’s Assets and Liabilities ManagementCommittee as well as ensuring compliance with regulatoryrequirements of regulators in jurisdictions where the Groupoperates in. These operations are mainly conducted throughthe treasury units of Public Bank, Public Investment Bank,Public Islamic Bank and Public Bank (Hong Kong) Limited.Another major treasury activity of the Public Bank Group’sdomestic operations is the trading of Ringgit denominatedsecurities in the domestic bond market. Public Bank, as aPrincipal Dealer, provides market liquidity for securitiesspecified by Bank Negara Malaysia (“BNM”) which includeboth conventional and Islamic government bonds and bills.Performance ReviewThe Public Bank Group’s treasury operations reported pretaxprofit of RM339.4 million in 2012, an increase of 5.8%from 2011 despite challenging market conditions arisingfrom the ongoing European debt crisis which impacted bothglobal and intra-regional trade.Marketing and Other Key InitiativesDespite stiff market competition and slowdown in demandfor foreign exchange products and services due to theweakened global economy, Public Bank’s treasury salesteam stepped up its marketing efforts to market foreignexchange related services to the Group’s retail andcorporate customers. In 2012, the Group’s treasury salesteams together with branch officers made a total of 209customer visits to market solutions to meet customers’treasury needs. As a result of such marketing efforts,the Group’s foreign exchange income grew by 3.6% toRM225.4 million in 2012.