Friday 21 Jun 2024
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KUALA LUMPUR (Aug 25): Malaysia Building Society Bhd (MBSB) posted net profit of RM403.41 million for the second quarter ended June 30, 2021 (2QFY21), surging 536% from RM63.41 million in the preceding quarter amid impairment write-backs.

Revenue fell 2.4% to RM664.94 million from RM680.98 million in the first quarter.

In the corresponding quarter last year, the group posted a net loss of RM12.51 million and revenue of RM886.35 million.

In a statement, the group attributed the quarter-on-quarter (q-o-q) improvement to write-backs on impairment, while the decline in revenue was due to a lower gain from sale of financial investments during the quarter.

"The results were mainly attributed to lower expected credit loss which contributed to net write-backs for impairment following improvement of staging for our 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," said MBSB acting group president and chief executive officer Datuk Nor Azam M Taib.

Meanwhile, the group's total assets grew 1.8% q-o-q to RM50.84 billion from RM49.94 billion, mainly due to increases in the financial investments and net financing amount.

On a year-on-year basis, MBSB's total assets increased 4.6% from RM48.59 billion.

Deposits increased by 0.2% to RM35.68 billion, from RM35.6 billion in the preceding quarter.

The group's cost-to-income ratio stood at 24.01% in 2QFY21, slightly lower compared with 24.03% in the preceding quarter, while its common equity tier 1 ratio (CET-1) dipped to 21.06% versus 21.2% previously.

Its liquidity coverage ratio stood at 220.09% compared with 202.67% in the preceding quarter.

For the first half of its financial year ending Dec 31, 2021, MBSB's cumulative net profit stood at RM466.83 million, compared with a net loss of RM85.76 million a year earlier, while cumulative revenue declined 17% to RM1.35 billion from RM1.63 billion.

Looking ahead, Nor Azam said MBSB will be maintaining its core strategy by ensuring a strict cost structure, which has enabled it to invest in growth opportunities and deliver sustainable returns to its stakeholders.

"We were very concerned about the restrictions under Full Movement Control Order where many industries were not allowed to operate and it could have potentially caused serious consequences to the economy.

"But as a financial institution, it is our responsibility to deliver our services the best we can, even when times are tough," he said.

He added that the group is optimistic to strengthen its position and explore new initiatives with the reopening of the economy, and hopes to see an improvement in the political front.

Nor Azam also highlighted that MBSB has allocated RM1 billion for the CAKNA scheme, which is spearheaded by Bank Negara Malaysia in collaboration with the Ministry of Finance.

The scheme provides cash flow assistance through quick liquidity to contractors supplying or providing services to the government.

MBSB's share price closed unchanged at 63.5 sen, giving a market capitalisation of RM4.55 billion.

Edited ByS Kanagaraju
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