KUALA LUMPUR – Malaysia Building Society Bhd (MBSB) recorded a net profit of RM403.41 million in the second quarter ended June 30, 2021 from a net loss of RM12.51 million in the same period a year ago, contributed mainly by writebacks on impairment.
Revenue for the quarter, however, eased to RM664.94 million from RM886.35 million a year earlier mostly due to lower gains from the sale of financial investments in Q2.
MBSB acting group president and chief executive Datuk Nor Azam M. Taib in a statement today said the results are attributed mainly to lower expected credit loss, which contributed to net writebacks for impairment following improvements in staging for its loans, financing and advances.
“This also denotes the efficiency on the enhancement of our business plan, which we operated on diligently since the beginning of the year.”
MBSB’s total assets for Q2 increased marginally by 1.80% quarter-on-quarter to RM50.84 billion from RM49.94 billion previously, mainly in financial investments and net financing amount.
Its total assets saw a year-on-year increase of 4.63% from RM48.59 billion in Q2 last year.
Meanwhile, deposits increased by 0.22% to RM35.68 billion against RM35.60 billion in Q1, and 4.97% against RM33.99 billion in Q2 last year.
On MBSB’s key financial ratios, the cost-to-income ratio stood at 24.01% in Q2, marginally lower against the 24.03% recorded in the preceding quarter.
The common equity tier ratio dipped slightly on-quarter to 21.06% from 21.20% previously.
The group’s liquidity coverage ratio stood at 220.09% in Q2 from 202.67% in the previous quarter, in compliance with Bank Negara Malaysia’s requirement.
On MBSB’s expectations for the next quarter, Nor Azam said with the gradual reopening of the economy, the company’s main subsidiary MBSB Bank Bhd is optimistic that it can further strengthen its position and explore new initiatives.
“We hope to see an improvement on the political front as political stability impacts consumer sentiment.” – Bernama, August 25, 2021
