MBSB to complete MIDF acquisition in September

From left: MBSB’s chief strategy officer Datuk Azlan Shahrim, group chief executive officer Datuk Nor Azam M. Taib and chief financial officer Ramanathan Rajoo.

PETALING JAYA: Malaysia Building Society Bhd (MBSB) hopes to see Malaysian Industrial Development Finance (MIDF) as part of the group by September this year following their recent proposed acquisition announcement.

Chief strategy officer Datuk Azlan Shahrim said an EGM will be called in July or August to seek shareholders approval.

He described the corporate exercise as "a growth merger" with minimum overlap.

The management is expected to call for an extraordinary general meeting in July or August to seek shareholders' approval for the acquisition.

"The idea was to merge these two banks, which want to do more, and let them leverage each other's strength in their products and market segments," said Azlan, adding that the merger could also enhance both parties' ability in retaining customers with more offerings within the enlarged group," he said after MBSB's 53rd AGM yesterday.

MBSB recently signed a conditional share purchase agreement with Permodalan Nasional Bhd to take over MIDF for RM1.01bil.

On the bank's performance, group chief executive officer Datuk Nor Azam M. Taib said it is looking at 8% to 10% in financing growth this year.

The bank, he said, has launched a mitigation plan to deal with a slim interest margin after a few rounds of overnight policy rate hikes.

It also aims to reduce its non-performing loan ratio to below 4% this year from the current 6.7%.

On the Employees Provident Fund Account 2 Support Facility (FSA2), Nor Azam said MBSB's financing is likely to reach RM1bil by the end of this month from the current RM900mil

He said the bank is looking forward to rolling out phase 2 of the facility, which is set to cover applicants 40 years and below.

Applications for the FSA2 Phase 1, which opened on April 7, 2023, will close on April 6, 2024. - Bernama