MBSB to convert RM1 bln into Islamic assets in 2 years

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) is targeting to convert its remaining 10 per cent conventional assets valued at RM1 billion into Islamic assets over the next two years.

This is in line with the group's plan to have a full-fledged Islamic bank, president and chief executive officer Datuk Seri Ahmad Zaini Othman said.

“Currently 90 per cent of our conventional assets have been transformed into Sh ari ah compliant assets ,” he told reporters after the group's annual general meeting yesterday.

He said the remaining assets are in the home mortgage segment and

Currently 90 per cent of our conventional assets have been transformed into Shariah-compliant assets. Datuk Seri Ahmad Zaini Othman, MBSB president and chief executive officer

would be converted gradually.

On capital expenditure, Ahmad Zaini said the group has allocated RM250 million for digital transformation over the next 15 to 24 months.

He said the group also plans to bolster its fintech capabilities in partnership with third parties to provide a better customer banking experience.

For the first quarter of 2018, MBSB's net profit increased 212.65 per cent year-on-year (y-o-y) to RM316.79 million while revenue remained at RM815.04 million y-o-y.

He said the group projects loan growth of between three and five per cent this year driven by affordable home and business loan financing.

“For MBSB, what we are looking at is to push more on transactional banking like trade finance,” he added. — Bernama