MPHB Capital 2Q net profit up to RM198.9m

PETALING JAYA: MPHB Capital Bhd (MPHB Cap) saw net profit for thesecond quarter ended June 30, 2014 jump to RM198.86 million from RM14.41 million a year ago on gains from the sale RM195.8 million worth of investment properties.
Revenue in the same period increased by 14.7% to RM91.8 million from RM80 million a year ago.
Earnings per share for the period rose to 27.81 sen from 3.88 sen the previous year.
It said that its pretax profit from its insurance division was 24.7% higher at RM20.55 million due to higher underwriting profit and investment income recorded in the current quarter.
Its credit division posted a drop to RM3.42 million due to lower interest income, which is mitigated by higher gain on fair value adjustment on investment securities in the current quarter.
Meanwhile, the gain from the sale of its investment properties in the second quarter has contributed to the pretax of RM181.17 million, it said.
MPHB Cap was listed on the Main Market of Bursa Malaysia in June 2013 following a corporate exercise undertaken by Multi-Purpose Holdings Bhd to list its non-gaming assets.
On its prospects, the group said its insurance division, Multi-Purpose Insurans (MPIB), is negotiating to form a strategic alliance with an interested party.
"The division aims to increase its market share through the expansion of its extensive network and agency base, recruitment of result oriented marketing personnel and further development on new product schemes. It also aims to enhance existing products through new distribution channels," MPHB Cap said.