Highlight MBSB 2Q net profit rises 41% on year to RM233m, revenue higher at RM672m

by **Cals** Fri 15 Aug 2014, 00:48

Highlight MBSB 2Q net profit rises 41% on year to RM233m, revenue higher at RM672m

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Thursday, 14 August 2014 14:29

KUALA LUMPUR (Aug 14): Malaysia Building Society Bhd (MBSB) posted a net profit of RM232.9 million for its second quarter ended June 30, 2014 (2QFY14), up 41% from RM165.1 million a year earlier.

Financial services provider MBSB's profit rose as net interest income increased while allowance for bad loans fell, the group told Bursa Malaysia today. MBSB said revenue rose 9% to RM672.1 million from RM614.3 million.

The group said profit before tax rose 26% to RM310.9 million due to “lower impairment losses on loans, advances and financing and higher operating income.”

“MBSB delivered a second quarter of steady underlying performance despite a tough market with growing profits, improved revenue and quality assets.

“Our entire core businesses contributed to this result and MBSB’s performance was primarily driven by its retail segment and supported by the increase in corporate business asset,” MBSB president and CEO Datuk Ahmad Zaini Othman said.

For the cumulative first-half period, MBSB's net profit rose to RM429.6 million from RM331.2 million in the same period the year before, while revenue climbed to RM1.34 billion from RM1.18 billion.

MBSB said its corporate loan segment reported higher gross income. Its personal financing unit and mortgage loan segment, however, reported lower gross income.

Going forward, the group said growth at its personal financing and mortgage portfolios would be more challenging in 2014 due to Bank Negara Malaysia’s move to promote a sound and sustainable household sector.

Meanwhile, MBSB has been expanding its corporate business segment, taking advantage of opportunities under the government’s Economic Transformation Programme.

“Barring any unforeseen circumstances, the group expects performance in the second half of 2014 to be satisfactory,” said MBSB.