MBSB: Retail segment lifts Q3 pre-tax earnings by 10.6pc
KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) reported an increase of 10.6 per cent in pre-tax profit for the third quarter ended September 30 2013 to RM196.24 million from RM177.38 million in the previous corresponding quarter.
Revenue rose to RM644.03 million from RM520.68 million previously.
For the nine-month period, the group's pre-tax profit jumped 65.9 per cent to RM680.93 million from RM410.48 million in the same period last year while revenue rose to RM1.82 billion from RM1.34 billion.
Its nine-month pre-tax profit has exceeded the 2012 full-year pre-tax profit of RM656.23 million by 3.8 per cent.
The group registered an annualised net return on equity of 34.1 per cent for the first nine months.
MBSB president and chief executive officer Datuk Ahmad Zaini Othman attributed the results to retail business although the portfolio registered slower growth.
"The slower retail growth was reflected by the measures announced by Bank Negara Malaysia in early July to further promote a sound and sustainable household sector.
"Our corporate business lending activities continued to show improvements with disbursements in the third quarter," he said in a statement.
Ahmad Zaini said the group emphasises more on continuous improvement in collections and recovery for both retail and corporate loans and refining its strategies on specific groups of assets.
MBSB's net non-performing loan ratio stood at 3.4 per cent as at September 30 2013 from 4.5 per cent as at December 31 2012.
As at September 30 2013, its net loan, advances and financing stood at RM30.14 billion, a rise of 24.2 per cent from RM24.266 billion as at December 31 2012.
Ahmad Zaini said the loan and financing assets are supported by the group's deposit-taking activities and securitisation programmes.
The deposits, which stood at RM29.35 billion as at September 30 2013, grew by 36.6 per cent from December 31 2012 of RM21.49 billion.
"Corporate depositors continued to be supportive of MBSB and the growth of the deposits is because of the confidence in MBSB.
"We have further strengthened our corporate business and other new business strategies in anticipation of the expected changes in the operating environment in order to maintain our competitiveness," he said.
Publish date: 23/10/13