The group’s pre-tax profit for the fourth of RM150.8mil increased by RM77.1mil as compared to the preceding quarter pre-tax profit of RM73.7mil. The increase was mainly due to lower allowances for impairment losses on loans, advances and financing and higher net operating income.
Its revenue, however, was lower at RM819.4mil in the fourth quarter against RM825.68mil previously.
MBSB board of directors has recommended a single-tier final dividend of 3.0% (3.0 sen net per ordinary share) for the financial year ended Dec 31, 2016.
The company said based on the share capital of 5.79 billion ordinary shares as at Feb 10, 2017, the single-tier final dividend payable would be approximately RM173.963mil.
For the full financial year ended Dec 31, 2016, MBSB posted a net profit of RM201.4mil, or 4.90 sen earnings per share, on revenue of RM3.27bil.
“We are pleased with the results considering the challenging economic environment last year that has dampened market sentiments. For MBSB, it was tougher but in anticipation of such prospects, we had treaded the year with caution and great prudence ensuring we are able to maintain business momentum as well as sustain profitability level.
“I believe we have accomplished that,” president and CEO Datuk Seri Ahmad Zaini Othman said in a statement.
Gross loans, advances and financing grew to RM35.28bil from RM34.11bill, a marginal increase of 3.45% or RM1.17bil.
On this, Ahmad Zaini said: “While we had strengthened market position in financing government contracts and projects especially the affordable housing, we are pleased to note that the new foray in SME segment continued to show promising results since the offer of equipment financing began two years ago.
“Revenue growth was four-fold from previous year, partly contributed by our new market presence in the northern and southern regions”.
MBSB’s retail financing assets remained the key contributor to its revenue with an asset composition between retail and corporate at 81:19 for year 2016 as compared with 85:15 in 2015.
Its net impaired financing/Loans ratio declined to 2.87% from 2.99% in 2015. Another positive indication also came from the financing/loans loss coverage ratio which had increased to 109.24% from 92.23%.
MBSB said in strengthening its liquidity position, the group had boosted investments in liquefiable assets achieving growth of RM1.37bil and as a result, contributing to the total income. Liquid assets stood at RM9.28bil as at Dec 31, 2016, rising by 17.33% as compared to RM7.9bil for the previous year.
The increased investment is in tandem with the net proceeds received from a rights issue of RM1.7bil completed in July 2016 which also increased the group’s leverage ratio to 14.38% as at Dec 31, 2016. To further support business expansion, the group had also accomplished in raising deposit level from RM28.58bil in 2015 to RM30.61bil as at Dec 31, 2016.
Commenting on its prospects, Ahmad Zaini said the heightened economic uncertainties and challenges leave us with no choice but to be resolute and optimistic.
“As it is, MBSB has developed and strengthened its capabilities in selected corporate segments that are well-linked and involved in the government projects, especially in the areas of education, infrastructure and now, the affordable housing. We are well supported by a qualified in-house technical team who monitors projects efficiently to identify and address project risks.
“Hence, MBSB hopes to benefit from the government’s efforts in continuing to roll out various construction and property projects to support the country’s economic growth,” he added.