Islamic banking boosts MBSB profit
Malaysia Building Society Bhd (MBSB) posted a 76% rise in second-quarter net profit to RM165.2mil from RM93.7mil a year earlier on an increase in net income from Islamic banking operations.
Revenue for the period was 38% higher at RM614.3mil from RM444.5mil previously.
For the first half of financial year 2013, MBSB achieved a net profit of RM331.1mil, 91% higher than RM173.1mil a year earlier.
Revenue for the half year came in at RM1.18bil, 43% higher than the RM823.4mil posted a year earlier.
In a filing with Bursa Malaysia, the non-bank financial provider said that net loan, advances and financing stood at RM29.2bil as at June 30 this year, an increase of 20.2% compared with RM24.3bil as at Dec 31, 2012.
The group’s net non-performing loans ratio stood at 3.2% as at June 30 versus 4.5% as at Dec 31 last year.
“The strong results also improved the group’s net return on equity of 38.0% as at June 30, 2013 from 37.6% as at March 31, 2013, respectively,” MBSB said.
President and chief executive officer Datuk Ahmad Zaini Othman said in a statement that the improved financial results were contributed by the retail business segment.
“Nevertheless, our corporate business lending activities have also shown marked improvements, with disbursements for the first six months of this year increasing by 42.1% compared with the same period in 2012.
“We continue to improve on collections and recovery for both retail and corporate loans, and have recently revised our strategies to target specific groups of assets,” he said.
Deposits, whichstoodatRM26.6bil as at June 30, grew 23.8% from the Dec 31, 2012’s record RM21.5bil, while corporate depositors remained supportive of the group.
Zaini said the group would remain committed to the business strategies already laid out for this year, with greater focus on fee-based income and an increase in corporate lending.