MBSB profit soars on high operating income

PETALING JAYA: Malaysia Building Society Bhd’s (MBSB) net profit for its third quarter ended Sept 30 rose 45% to RM192.37mil from RM132.72mil mainly as a result of higher operating income from Islamic banking operations and conventional business as well as lower impairment losses on loans, advances and financing.

Revenue during the period increased to RM678.99mil from RM644.03mil a year earlier, the company said in a filing with Bursa Malaysia.

For the nine-month period ended Sept 30, net profit increased to RM621.96mil from RM464.02mil while revenue rose to RM2.02bil from RM1.82bil in the previous corresponding period.

On its prospects ahead, MBSB said group expansion of its corporate business segment had shown positive contribution in terms of loans/financing assets and earnings growth.

“The group continues to strengthen its corporate and retail businesses, and other new business strategies in anticipation of expected challenges and changes in the operating environment to maintain its competitiveness,” it added.

In a statement accompanying its financial results, MBSB president and chief executive officer Datuk Ahmad Zaini Othman said the group had maintained its growth momentum by remaining focused on the expansion of the corporate segment with total disbursement amounting to RM1.7bil as at September 2014.

“The corporate segment contributed 10.9% from the total gross loan and financing as at September 2014 compared with 9.2% as at December 2013. The earnings from the corporate segment were predominantly contributed by the property development sector.

“We expect to see increased earnings in our corporate segment backed by a healthy asset quality,” he said.

According to MBSB, net loan, advances and financing stood at RM31bil and increased by 2.3% as at Sept 30, 2014 compared with RM30.3bil as at Dec 31, 2013.

Cost-to-income ratio stood at 20.3% as at Sept 30, 2014, up slightly from 19.6% as at Dec 31, 2013. This was partly attributed from the higher interest costs due to an increase in the overnight policy rate (OPR) in July 2014.

“However, the company’s cost-to-income ratio remains an impressive achievement in comparison to the industry average of 46.6%.”

MBSB, together with CIMB Group Holdings Bhd and RHB Capital Bhd, are proposing a mega merger, where, if successful, would potentially create Malaysia’s biggest bank, reportedly with a market value of US$22bil (RM71.7bil).

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Business , MBSB


Next In Business News

Wall Street eyes subdued open as bank worries persist
Credit Suisse, UBS deal: What you need to know
All-new Toyota Vios gets more than 5,000 orders since Feb 24
Theta Edge gets contract termination notice from IJN
Ringgit ends marginally higher against US dollar
AHAM Asset Management’s bond funds have negligible exposure to Credit Suisse’s ATIs
SMTrack's auditors resign
SNS Network to supply apple products, accessories to Kumon Malaysia
Leform wins RM19.53mil contract from IJM Construction
KLCI ends lower as caution over banking turmoil persists

Others Also Read