MBSB earnings soar on higher operating income
PETALING JAYA: Malaysia Building Society Bhd’s (MBSB) net profit for its first quarter ended March 31, 2017 rose nearly 200% to RM101.32mil from RM34.84mil in the previous corresponding period, mainly due to higher net operating income.
In a filing with Bursa Malaysia, MBSB said the higher bottomline was also attributed to lower allowances for impairment losses on loans, advances and financing with the continuation of the impairment programme initiated by the group in the fourth quarter of 2014.
Revenue, meanwhile, dropped to RM811.20mil from RM812.63mil a year earlier.
MBSB said the lower revenue was mainly due to lower financing income from retail segment and lesser income from investments in liquid assets.
“The group’s cost-to-income ratio improved from the previous year to stand at 19.7%.”
The company said the gross income from its personal financing segment in the first quarter was lower compared to the previous year’s corresponding period due to lesser disbursements and decreasing portfolio base.
Meanwhile, it said gross income from corporate loans and financing in the first quarter was higher compared to the previous year’s corresponding period due to the continued growth of corporate loans and financing assets base.
“The gross income from mortgage loans and financing was lower compared to the previous year’s corresponding period due to lower disbursements and decreasing portfolio base.”
The gross income from the auto finance loans and financing division, meanwhile, was lower yearon-year due to lower disbursements and decreasing portfolio base.
MBSB also said the group embarked on a “Closing the Gaps” exercise since 2010 to bridge its frameworks to be in line with banking standards and best practices.
“The impairment programme, which is in line with the recommendation by Bank Negara, is in addition to the existing impairment provision that is in compliance with current accounting standards.”
On its prospects, MBSB said it would focus on continued expansion of the corporate business segment, as it had shown positive contribution in the first quarter of 2017, in terms of growth in corporate portfolio assets and earnings.