Update MBSB 1Q net profit rises 18.41% to RM196.73m

by **Cals** Fri 16 May 2014, 02:14

Update MBSB 1Q net profit rises 18.41% to RM196.73m

Business & Markets 2014

Written by Surin Murugiah of theedgemalaysia.com

Thursday, 15 May 2014 14:04

KUALA LUMPUR (May 15): Malaysian Building Society Bhd’s (MBSB) net profit for the first quarter ended March 31, 2014 rose 18.41% year-on-year to RM196.73 million from RM166.14 million a year earlier, driven mainly by higher profit and interest income from personal financing and corporate loans respectively.

In a filing Thursday, MSBB said revenue for the quarter rose to RM667.11 million from RM562.48 million a year earlier.

Earnings per share was 8.37 compared to 13.08 sen a year earlier, while net asset per share was RM1.46.

Reviewing its performance, MBSB said the current period profit was further improved by higher other operating income and lower allowances for impairment losses on loans, advances and financing.

On its prospects, MBSB said since Bank Negara Malaysia’s announcement on the measures to further promote a sound and sustainable household sector in July 2013, the growth of its personal financing and mortgage portfolios would be more challenging in 2014.

MBSB said that while sustaining the personal financing portfolio, it had been expanding the corporate business segment including tapping into opportunities under the Federal Government’s Economic Transformation Programme.

It said a well-planned expansion programme into corporate segment will contribute positively to the company in terms of assets and earnings growth whilst diversifying the assets base.

“Enhancing risk management framework to improve operational workflows and assets quality would remain the top priority for the group.

“The group continues to strengthen its retail and corporate business and other new business strategies in anticipation of the expected challenges and changes in the operating environment to maintain its competitiveness.

“Barring any unforeseen circumstances, the group expects performance in 2014 to be satisfactory,” it said.