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MBSB’s net profit for Q1 declined by 73.5 per cent

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Syndicated News
Written by Syndicated News

KUALA LUMPUR, May 16 2019 : Malaysia Building Society Bhd (MBSB) recorded a 73.5 per cent drop in net profit to RM83.83 million for the first quarter ended March 31 against a year earlier due to higher expected credit losses (ECL).

The increase in ECL was due to the RM154.39 million write-back recorded in the corresponding period last year, the company said in a filing with Bursa Malaysia yesterday.

The ECL charged for the quarter under review was RM153.02 million.

Revenue slipped to RM784.04 million from RM815.04 million previously. Total gross loans, financing and advances, however, increased by 0.7 per cent year-on-year to RM35.44 million.

In a press statement, group president and chief executive officer Datuk Seri Ahmad Zaini Othman said despite the on-going challenges, including the impact of the higher ECL, the group registered stable growth in revenue and net operating income quarter-on-quarter.

He added that MBSB still maintained a cost-to-income ratio of 26.34 per cent, which was below the industry average.

“While the Malaysian economic condition remains challenging, we will remain focused in expanding our banking capabilities. With this, the bank’s technology transformation shall continue to be in the centre stage.

“On another front, we also aim to increase our fee income-based activities to make up 35 per cent of income by end of 2020,” he added. – Bernama

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