MBSB Q2 net profit slips to RM85.6m

MBSB president and CEO Datuk Seri Ahmad Zaini Othman said:

KUALA LUMPUR: Malaysia Building Society Bhd's (MBSB) net profit for the second quarter ended June 30, 2018, slid to RM85.68 million from RM91.08 million recorded in the same period last year.

Revenue fell to RM794.14 million from RM813.41 million previously, contributed by lower income from financing activities due to cessation of conventional businesses since the first quarter of this year, it said in a filing to Bursa Malaysia on Monday.

Group President and Chief Executive Officer Datuk Seri Ahmad Zaini Othman said the company's gross loans and financing recorded a year-to-date growth of 4.1 per cent, or RM1.41 billion, to RM35.61 billion, mainly contributed by higher corporate financing disbursements but partly off set by a slight contraction in the retail base.

He said total assets decreased by 1.6 per cent to RM44.10 billion compared with RM44.81 billion recorded as at December 31 last year due to lower liquefiable assets as a result of deposit alignment management.

“As the Group realign its deposit takings to lower the average cost of funding, total deposits dropped by RM1.28 billion or 3.9 per cent to RM31.48 billion (from Dec 31, 2017),” he said.

He said the expansion in the corporate segment had increased the company's asset composition between retail and corporate to 75:25 against 79:21 as at Dec 31, 2017.

“Apart from the corporate segment, the consolidation of existing portfolios from MBSB Bank also contributed to the company's (aim of) moving dynamically towards its targeted asset composition of 65:35 by 2019,” he said.

Moving forward, he said MBSB Bank would continue to expand its new banking products which included trade finance and wealth management while achieving required capabilities such as Internet and mobile banking to increase customer reach.

MBSB is the financial holding company of MBSB Bank, formerly known as Asian Finance Bank Bhd. - Bernama