PETALING JAYA: Malaysia Building Society Bhd
(MBSB) expects an asset growth of 10% by year-end, driven by fee income and the trade financing business.
Acting chief executive officer Datuk Nor Azam M. Taib said the growth of the new progressive Islamic bank will also be driven by the group’s retail and commercial side.
From the retail side, the growth will definitely come from personal financing, montages and home financing, while from commercial and corporate, it will be the trade business.
“MBSB is just a new bank coming to the industry. So, for us to grow by 10% there is still a lot of room to grow, unless we are a much bigger bank where market share is already touching 40% to 50%.
“To bring in other growth might be another challenge.
“So, for us to create a new growth of 10% for 2022, it would be possible,” he said after MBSB’s AGM yesterday, Bernama reported.
Nor Azam said the group aimed to reach RM20bil in trade volume by year-end.
As at May, MBSB had already reached RM12bil in trade volume, he said.
He added, “We built a trade volume of more than RM15.6bil last year.
“So, we expect to close RM20bil in trade value by this year.”
Moving forward, Nor Azam said MBSB aimed to enhance its existing business to improve competitiveness and meet evolving market expectations.
“We are currently pursuing new businesses to accelerate growth to increase shareholder value,” he said.
Nor Azam said MBSB Bank was pursuing its Journey 2025 or J25 roadmap as it aimed to become a top progressive Islamic bank in the country, guided by a two-pronged business strategy of generating new revenue streams and enhancing existing businesses.
“We are generating new revenue streams to accelerate our growth, which will be undertaken by way of product differentiation and customised solutions,” he added.
For the year ended Dec 31, 2021, the group registered a net profit of RM438.7mil, a 62.9% increase from RM269.3mil in the previous corresponding period.
Meanwhile, revenue declined slightly by 16.6% to RM2.6bil from RM3.2bil last year.
