KUALA LUMPUR: Malaysia Building Society Bhd
’s (MBSB) net profit for its first quarter ended March 31, 2017, nearly tripled to RM101.32mil from RM34.84mil achieved in the same period last year.
This was thanks to a higher net operating income and lower allowances for impairment losses on loans, advances and financing, it said in its interim financial report to Bursa Malaysia.
The group’s gross loans and financing grew by 4.07% year-on-year to RM35.85bil, mainly contributed by higher corporate financing disbursements,
Gross incomes from personal financing, mortgage loans and financing, and auto finance loans and financing were all lower compared to a year earlier.
Meanwhile, allowance for impairment losses on loans, advances and financing fell by RM50.61mil to RM167.92mil. The lower allowances was the result of the continuation of an impairment programme initiated by the group in the fourth quarter of 2014.
MBSB’s revenue was almost flat at RM811.20mil versus RM812.63mil in 2016’s first quarter.
It said the lower revenue was mainly due to lower financing income from the retail segment and less income from investments in liquid assets.
MBSB said the group expected its performance for this year to be satisfactory.
“The group will focus on continued expansion of corporate business segment as it has shown positive contribution in the first quarter of 2017 flowing in from 2016, in terms of growth in corporate portfolio assets and earnings,” it said.
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