MBSB's Q3 net profit up 73.9% on lower allowance for impairment losses

PETALING JAYA: Malaysia Building Society Bhd’s (MBSB) net profit jumped 73.9% to RM100.74 million for the third quarter ended September 30, 2017 compared with RM57.93 million in the previous corresponding period, driven by lower allowance for impairment losses on financing/loans and advances and lower cost of funds.
Revenue was down by 1.6% from RM830.25 million to RM816.87 million.
MBSB’s nine-month net profit leaped 88.2% from RM155.77 million to RM293.14 million, with revenue declining 0.6% from RM2.46 billion to RM2.44 billion.
The group said in a filing with the stock exchange that as at September 2017, its gross financing/loans and advances stood at RM36.09 billion, 2.27% higher than the same period last year, thanks to the expansion in corporate and property financing, which has helped to partly offset the contraction in retail segment.
MBSB president and CEO Datuk Seri Ahmad Zaini Othman said the group will complete the impairment program at the end of this year as targeted.
“We continue to advance towards 70:30 asset composition between retail and corporate with September position showing 78:22 and meanwhile, close to 90% of our asset portfolio are Islamic.”
On the proposed acquisition of the entire equity interest in Asian Finance Bank Bhd, MBSB has started pre-integration activities to ensure smooth integration of operations after completion of the proposed acquisition.
Barring any unforeseen circumstances, the group expects its performance for 2017 to be satisfactory.
Its share price fell 1 sen or 0.9% to RM1.09 on some 2.22 million shares done.