No merger talks on the card, says MBSB

KUALA LUMPUR: Non-bank lender Malaysia Building Society Bhd (MBSB) has not initiated any new merger discussions with any organisation after the deal with CIMB Group Holdings Bhd and RHB Capital Bhd fell through.
President and CEO Datuk Ahmad Zaini Othman reaffirmed that MBSB has not receive the green light from its shareholders to talk to any financial institution on a potential merger and acquisition.
"As far as corporate exercise (is concern), it can come anytime as and when the shareholders feel there is a necessity to embark on it," he said.
He was commenting on the market talks on a possible merger between MBSB and Bank Islam Malaysia Bhd.
Earlier this year, MBSB called off its plan to merge with CIMB Group and RHB Capital, citing unfavourable economic conditions.
"At this stage, we (the management) are busy closing the gap between retail and corporate segments as well as conforming to banking and governance guidelines," Ahmad Zaini said after signing a memorandum of understanding (MoU) on behalf of MBSB with Credit and Debt Management Agency (AKPK) here yesterday.
In another development, he said the company strived to improve the group's net non-performing loan/financing (NPLF) to below 3% this year from 4.1% last year.
For the retail segment, MBSB is looking at NPL rate of below 2%, he said, adding that it is achievable as the group has started its reclassification process of NPL accounts to three months from six months previously.
The MoU will enable MBSB to participate in AKPK's debt management programme, which will see the latter extending its services, namely credit counselling, financial education, and debt management.
Ahmad Zaini is optimistic of MBSB obtaining 5-10% participation of its overall NPLF customers in the programme facilitated by AKPK. – Bernama