MBSB aims to boost CASA level in 2024

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

The group aims to realise synergies between MBSB and Malaysian Industrial Development Finance Bhd (MIDF) to provide customers with better service, innovative products, and personalised solutions, especially for small and medium enterprises (SMEs) and retail customers in the mass affluent segment.

“This strategy will be anchored in our continuous improvement in digitalisation, making it easier for our customers to conduct banking and manage their operations,” MBSB said in a filing with Bursa Malaysia.

MBSB completed the acquisition of MIDF in October 2023.

In the first quarter ended March 31 (1Q24), MBSB saw its net profit rise 5.7% to RM78.3mil, or earnings per share of 0.95 sen compared with RM74.1mil, or 1.03 sen.

Its revenue jumped 34.2% to RM893.4mil versus RM665.5mil achieved a year ago.

"Our first-quarter results are a testament to increasing synergy within MBSB Group following the strategic inclusion of MIDF. The enhancements in our CASA ratio and robust growth in our non-funded income streams reflect the progress in our transformation workstreams.

“We are progressing in the right direction towards expanding our market presence," group chief executive officer Rafe Haneef said in a statement.

Net funded income during the quarter increased by RM60.3mil, primarily driven by a healthy 9.7% increase in financing.

MBSB said non-funded income improved by RM36.3 million, supported by MIDF's RM27.9mil contribution mainly from fee income, setting up the group well on its income diversification journey.

The group's CASA ratio stood at 7.6%, and the CASA deposits increased to RM3.7bil in 1Q24, against RM2.7bil in 1Q23, reflecting renewed focus and progress in the right direction.

MBSB Bank also reported an improved CASA ratio at 8.7% in 1Q24.

The group's overall financing increased by RM3.7bil year-on-year (YoY), reaching RM42.9bil in the first quarter of 2024, up from RM39.2bil in the same period last year.

It noted that corporate/commercial banking was the largest contributor to this growth, adding RM2.2bil predominantly from the merger exercise with MIDF, while consumer banking delivered an increase of RM1.6bil.

As at March 31, its common equity tier 1/tier 1 capital ratios and total

capital ratio remained stable at 19.5% and 23.3% respectively.

Its liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) remain above the regulatory requirement of 100% for the MBSB Group.