MBSB 4Q net profit jumps 50% to RM301mil

Rafe Haneef

KUALA LUMPUR: Malaysia Building Society Bhd’s (MBSB) key strategy for 2024 is to continue raising the current accounts and savings accounts (CASA) level and improve its funding costs.

“We have established a set of transformative programmes that will run for three years that is designed towards achieving these missions and ultimately improve our return on equity (ROE),” group chief executive officer Rafe Haneef said in a statement.

MBSB will also aim to realise synergies between MBSB and MIDF to provide customers with better service, innovative products, and personalised solutions, especially for SMEs and retail customers in the mass affluent segment.

In the fourth quarter, the bank posted a higher net profit and revenue of RM301.1mil and RM698mil respectively.

For the full financial year ended Dec 31, 2023 (FY23), MBSB’s net profit of RM491.81mil, representing a growth of 7% compared to RM460.19mil in the previous year.

Its revenue rose to RM2.82bil in FY23 against RM2.69bil in FY22.

The group’s financing grew by 9% to RM42.04bil mainly contributed by an expansion in commercial financing and retail financing.

Its customer deposits increased by 30.58% to RM47.62bil year-on-year (YoY). The group’s total assets stood at RM66.66bil as at Dec 31, a 21.3% increase YoY.

CASA ratio stood at 7.06% in FY23 compared to 6.22% in FY22 mainly contributed by corporate customers and SMEs while term deposits grew by 34.68% or RM9.28bil in FY23.

Meanwhile, the group’s ROE stood at 5.23% as at Dec 31 and common equity tier (CET-1) remains stable at 19.91%. Its liquidity coverage ratio (LCR) is at 183.56% as at Dec 31.

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