MBSB to boost corporate loan contribution

  • Business
  • Monday, 08 Jun 2015

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) is aiming for a retail-to-corporate loan ratio of 65:35 within the next three years.

Its president and chief executive officer, Datuk Ahmad Zaini Othman, said the ratio currently stood at 88:12.

Ahmad Zaini said under the MBSB corporate segment, the main contributors were bumiputras, corporate businesses and wholesale banking, respectively.

He told reporters this at the tawarruq refinancing facility signing ceremony between MBSB and YBK Usahasama Sdn Bhd here on Monday.

On the weakening of the local currency to an almost nine-year low against the US dollar in the early session on Monday, Zaini said MBSB had low foreign currency exposure, as most of its loans were denominated in ringgit.

Ahmad Zaini said the weakness of the ringgit against the US dollar or other key currencies also did not affect MBSB, as most of its business was localised. 

He said MBSB was one of the main financiers for the education sector in Malaysia, particularly as it has supported five Universiti Teknologi MARA (UiTM) projects to date and has extended over RM1.2bil of Islamic financing facilities.

“This includes an agreement sealed today for Tawarruq refinancing facility for YBK Usahasama Sdn Bhd to perform maintenance works UiTM campus in Jasin, Malacca, for RM250mil,” he said.

Ahmad Zaini said MBSB had also inked another refinancing facility for UiTM Seremban 3, for RM300mil. - Bernama
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