MBSB Q3 net profit up 40% to RM170m

PETALING JAYA: Malaysia Building Society Bhd (MBSB) saw a 39.5% increase in its net profit for the third quarter (Q3) ended Sept 30 to RM170.16 million from RM121.96 million, due to the reversal of prior year overprovision of tax expenses, after it finalised taxation for 2018 during the quarter.

Revenue was 3.5% higher at RM813.92 million from RM786.41 million, driven by MBSB Bank’s corporate financing income, treasury income and retail financing income.

Its gross financing grew 1.81% compared with Q3’18. Deposits also went up 12.09% against RM33.57 billion in Q3’18. Gross impaired financing ratio was at 5.71% regressing by 0.17% from 5.54% previously.

The group’s net impaired financing ratio slightly deteriorated 0.5% from 1.76% in Q3’18. The cost-to-income ratio also improved 0.96% from 27.66% a year ago.

For the nine-month period, MBSB saw a 31.3% decline in net profit to RM360.21 million from RM524.44 million, while revenue increased marginally to RM2.42 billion from RM2.4 billion.

In a statement, group president and CEO Datuk Seri Ahmad Zaini Othman expressed that the company is holding up well amid the current economic challenges and weak consumer sentiment.

“MBSB Bank will continue to look for opportunities in the digital banking sector at the same time focusing our strength in the Small and Medium Enterprises segment.

“The bank is progressing towards completing its 3-year digital transformation plan, to be achieved before 2021,” he said.

Barring any unforeseen circumstances, the group’s prospects for the year are expected to be satisfactory.

On another note, MBSB announced that it is raising up to RM10 billion through the Sukuk Wakalah Programme.

The proceeds from the issuance will be utilised for its syariah-compliant general banking purposes and to refinance its outstanding capital instruments.