MBSB's Q4 net profit doubles to RM123.98 million

PETALING JAYA: Malaysia Building Society Bhd's (MBSB) net profit more than doubled to RM123.98 million for the fourth quarter ended December 31, 2017 versus RM45.64 million in the previous corresponding period, driven by higher operating profit and lower allowances for impairment losses on loans, advances and financing.
Revenue was flat at RM818.27 million compared with RM819.4 million in the same quarter a year ago.
The group has proposed to declare a final dividend of 5 sen per share amounting to RM296.221 million for the quarter under review.
For the full year of 2017, MBSB's net profit also jumped two times from RM201.41 million to RM417.13 million, while revenue fell slightly by 0.5% from RM3.27 billion to RM3.26 billion.
The group told Bursa Malaysia that its gross financing and loans contracted slightly by 3.07% from RM35.28 billion in 2016 to RM34.2 billion in 2017, due to the reclassification of selected impaired retail financing and loans to financial assets held-for-sale, which is expected to be completed in the first quarter of this year.
However, its gross corporate financing and property financing grew 10.01% and 16.29% respectively.
On asset quality, MBSB's net impaired financing/loans ratio stood at 2.11% in 2017, which is an improvement of 0.76 percentage points from 2.87% in 2016.
With the acquisition of Asian Finance Bank Bhd (AFB) and the subsequent transfer of MBSB's shariah-compliant assets and liabilities to AFB, MBSB will transform itself into a licenced Islamic bank.
"Pre-integration activities have been smooth for operation integration pursuant to the completion of the proposed acquisition in the first quarter of 2018. Following the completion, the group will offer Islamic banking services to both retail and wholesale banking customers such as amongst others, deposit taking, wealth management, foreign exchange, investment banking, debt capital management and trade finance."
MBSB's share price fell 1.7% to close at RM1.17 on some 8.29 million shares done.