MBSB back in the black in Q4 with RM45.6m profit

PETALING JAYA: Malaysia Building Society Bhd (MBSB) has recorded a net profit of RM45.64 million in the fourth quarter ended Dec 31, 2016 (Q4FY16), from a net loss of RM15.8 million in the previous corresponding quarter, mainly due to lower allowances for impairment losses on loans, advances and financing and higher net operating income.
Revenue went down slightly to RM819.4 million from RM825.7 million in the same period last year.
MBSB has recommended a single-tier final dividend of 3 sen per share for the financial year ended Dec 31, 2016. The dividend payout would total about RM174 million.
For the full year, MBSB’s net profit declined 21.8% to RM201.4 million, against RM257.6 million a year ago, mainly due to the reversal of deferred tax assets.
Revenue increased 7.4% to RM3.27 billion, from RM3.05 billion previously, driven by increase in financing disbursement from the corporate segment.
In a statement yesterday, MBSB said the financial performance was further supported by the growth in total assets, attributed by the increase in net financing and loans as well as liquefiable assets.
MBSB’s gross loans, advances and financing grew to RM35.28 billion from RM34.11 billion, a marginal increase of 3.45% or RM1.17 billion.
On this, MBSB president and CEO Datuk Seri Ahmad Zaini Othman said while the group had strengthened its market position in financing government contracts and projects especially the affordable housing, its new foray in SME segment continued to show favourable results since the offer of equipment financing began two years ago.
On prospects, he said the heightened economic uncertainties and challenges leave the group with no choice but to be resolute and optimistic.
Nevertheless, he noted that MBSB has developed and strengthened its capabilities in selected corporate segments that are well-linked and involved in the government projects, especially in the areas of education, infrastructure and the affordable housing.
“We are well supported by a qualified in-house technical team who monitors projects efficiently to identify and address project risks. Hence, MBSB hopes to benefit from the government’s efforts in continuing to roll out various construction and property projects to support the country’s economic growth,” he said.