MBSB Q3 earnings up 21% to RM121.9mil

  • Business
  • Tuesday, 13 Nov 2018

MBSB president and CEO Datuk Seri Ahmad Zaini Othman said:

KUALA LUMPUR: MALAYSIA BUILDING SOCIETY BHD’s (MBSB) net profit rose 21% to RM121.96mil in the third quarter ended Sept 30, compared with RM100.73mil a year ago, due to lower charge of impairment allowances on loans and financing.

Its revenue, however, fell marginally to RM786.4mil in the third quarter against RM816.86mil previously. Earnings per share for the quarter stood at 1.97 sen from 1.70 sen a year ago. 

For the first nine months, MBSB’s net profit increased by 78.90% year-on-year (y-o-y) or RM231.30mil, recorded at RM524.44mil compared to RM293.14mil in third quarter last year.

MBSB said its pre-tax profit increased by 86.60% at RM694.96mil y-o-y compared to RM372.43mil recorded last year. Its total assets year-to-date recorded a growth of RM1.65bil or 4.83% to RM46.40bil.

In a statement, group president and CEO Datuk Seri Ahmad Zaini Othman said the group’s improved financial results is attributed to the lower impairment allowances on loans and financing in the current year following the completion of the 3-year impairment programme in December 2017 as well as the implementation of the MFRS9 compliant impairment model on Jan 1, 2018.

The group’s gross loans and financing recorded a year to date growth of 4.83% to RM35.85bil which was mainly contributed by higher corporate financing disbursements.

Total assets stood at RM46.40bil, an increase of 3.55 % compared to RM44.81bil recorded as at Dec 31, 2017, mainly due to higher gross financing/loans and liquefiable assets. 

Total deposits decreased by RM1.03bil or 3.13% from Dec 31, 2017 to RM32.76bil.

MBSB said its corporate segment’s strategic business expansions had increased the asset composition between retail and corporate to 74:26 compared to 79:21 as at Dec 31, 2017, moving towards the group’s target of 65:35 by year 2020.

“We continue to make progress in the SME segment as our customers are now able to obtain other key banking facilities from us which they would have otherwise subscribed from the other banks. Our aim is to exert more efforts on SME customers’ acquisition in other business regions in the country,” Ahmad Zaini said.

MBSB’s liquid asset position as at 3Q18 decreased by 12.07% from Dec 31, 2017 to RM10.29bil. Its annualised return on equity stood at 9.53% while annualised return on asset stood at 1.54%. Financing/loan loss coverage moderated at 129.24% compared to 128.30% in 2Q18.

MBSB’s cost to income ratio stood at 30.70% as compared to 28.60% recorded in 2Q18 which is mainly contributed by higher banking operating costs. However, the figure remains below the industry’s average of 45.8%.

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