Net profit soars 24% for MBSB in Q2

PETALING JAYA: Malaysia Building Society Bhd (MBSB) saw its net profit jump 24% in the second quarter ended June 30, 2019 with RM106.23 million against RM85.69 million recorded in the same quarter of the previous year due to a lower expected credit losses (ECL).

Revenue for the group rose 3% with RM817.66 million against RM794.14 million reported previously.

“MBSB’s profits in 2Q19 translated to an improved return on equity (ROE) and return on assets (ROA) contributed by lower ECL due to improvements in provisions for retail segment as well as ECL write backs from the corporate portfolio,” said its group president and CEO Datuk Seri Ahmad Zaini Othman in a statement.

Its net profit margin declined to 2.84% compared to 3.23% in 2Q18, while net income stood at RM336.31 million, a 6.09% decline from RM358.10 million in 2Q18.

MBSB’s current financing composition ratio between retail and corporate stands at 74:26 and it continues to move towards a target of 60:40 by the year 2020.

The group recorded a cost-to-income ratio of 31.32%, a year-on-year regression of 4.05% compared to 27.27% in 2Q18.

For the first half of 2019, the group reported a net profit of RM190.06 million, a 52.8% drop from RM402.48 million reported for the corresponding period of the previous year, while revenue remained flat at RM1.60 billion for the period against RM1.61 billion reported previously.

For the second half of the year, MBSB will continue with its plans to enhance the level of its customers’ experience and expand digital banking capabilities.

“MBSB Bank will be transforming 15 of its 47 branches into digital branches and will be introducing the current account and savings accounts (CASA-i) online application platform as well as the e-wallet facility by the end of this year,” said Zaini.

MBSB will also continue to focus to expand the corporate business to reach the desired corporate retail portfolio mix. As a new Islamic banking group in the industry, the group is looking forward to expand its products and services which include trade finance, wealth management and internet and mobile banking to cater various segments of customers and depositors.

source https://www.thesundaily.my/business/net-profit-soars-24-for-mbsb-in-q2-IJ1319965