Business News

Published: Saturday February 2, 2013 MYT 12:00:00 AM
Updated: Wednesday April 17, 2013 MYT 12:36:52 AM

MBSB beats KPI targets for revenue growth, RoE

PETALING JAYA: Malaysia Building Society Bhd (MBSB) has exceeded its key performance indicator (KPI) headline targets for its net return on equity and revenue growth for the fourth quarter of financial year ended Dec 31, 2012.

In a filing with Bursa Malaysia on Thursday, the non-bank lender said the KPI targets were surpassed due to higher income from Islamic banking operations via the expansion of personal financing and higher income from conventional business.

The group exceeded its target of 15% in net return on equity to 34%. Revenue growth also higher at 44.3% versus its target of 25%.

The company also announced that its net profit for the fourth quarter jumped to RM183.61mil from RM83.83mil a year earlier. The increase was mainly due to higher income from Islamic banking.

Revenue for the period stood at RM487.53mil, up 40.44% from RM347.14mil a year ago.

For the full year, the group's net profit grew 37.25% to RM446.65mil while revenue was RM1.832bil versus RM1.269bil in the previous year.

“The strong performance by MBSB is the result of the culmination of transformation initiatives undertaken by the company for the last four years, president and CEO Datuk Ahmad Zaini Othman said in a statement.

“MBSB has largely benefited from its renewed business direction and focus. These changes have allowed MBSB to intensely grow its retail assets, largely dominated by the personal financing-i (PF-i) to the government servant segment,” he said.

Zaini said the creation of new income streams in 2010 had been generating significant fee-based income for the lender via the expansion of retail business, and included the provision of bancatakaful, will-writing and new services at its branches nationwide.

Moving forward, the group is focusing on fee-based income to enhance profitability and improve its financing and loan assets quality.

For 2012, MBSB proposed a final dividend and special dividend of net 6.75 sen and 13.5 sen respectively.

Tags / Keywords: News, Business, Business, Malaysia Building Society Bhd, KPI, Islamic banking, Ahmad Zaini

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