KUALA LUMPUR: MALAYSIA BUILDING SOCIETY BHD's (MBSB) net profit for the second quarter ended June 30, 2018, slid to RM85.68mil from RM91.08mil recorded in the same period last year.
Revenue fell to RM794.14mil from RM813.41mil 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 today.
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%, or RM1.41bil, to RM35.61bil, 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%t to RM44.1bil compared with RM44.81bil 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 RM1.28bil or 3.9% to RM31.48bil (from Dec 31, 2017),” Ahmad Zaini 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