PETALING JAYA: MALAYSIA BUILDING SOCIETY BHD (MBSB) saw a 21% jump in net profit for the third quarter ended Sept 30, due to a lower charge of impairment allowances on loans and financing.
In a filing with Bursa Malaysia yesterday, the group said its impairment allowances for the third quarter decreased by RM65.4mil, driven by favourable forward-looking macroeconomic variables forecast by an external agency applied to the retail portfolio.
For the third quarter, MBSB posted a net profit of RM121.96mil compared to RM100.74mil a year ago.
Revenue, however, was 3.7% lower at RM786.41mil compared to RM816.87mil previously.
Cumulatively, for the first nine months of financial year 2018, MBSB’s net profit increased by 78.9% or RM231.30mil to RM524.44mil compared to RM293.14mil a year ago.
Revenue for the period declined 1.8% to RM2.40bil from RM2.44bil previously.
In a statement, MBSB group president and chief executive officer Datuk Seri Ahmad Zaini Othman said: “The group’s improved financial results are attributed to the lower impairment allowances on loans and financing in the current year, following the completion of the three-year impairment programme in December 2017, as well as the implementation of the MFRS9 compliant impairment model in January this year.”
Its 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 RM46.4bil, an increase of 3.55% compared to the RM44.81bil recorded as at Dec 31, 2017, mainly due to higher gross financing/loans and liquefiable assets.
However, its total deposits decreased by RM1.03bil or 3.13% from Dec 31, 2017 to RM32.76bil.
MBSB said its corporate segment’s strategic business expansion had increased the asset composition between retail and corporate to 74:26 compared to 79:21 as at Dec 31, 2017.
The group is targeting a 65:35 retail corporate asset composition by 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 effort on SME customers’ acquisition in other business regions in the country,” Zaini said.
Its annualised return on equity stood at 9.53%, while its annualised return on assets stood at 1.54%.
“As a new Islamic banking group in the banking sector, the group is looking forward to expanding its products and services which include trade finance, wealth management and internet and mobile banking to cater to various segments of our customers and depositors.
“Barring any unforeseen circumstances, the group’s prospects for the year are expected to be satisfactory,” MBSB said.