KUALA LUMPUR (May 31): Malaysia Building Society Bhd (KL:MBSB) said its first quarter net profit rose 5.68% to RM78.34 million from RM74.13 million a year ago, thanks to higher financing earnings and consolidation contribution from MIDF Group.

Revenue for the quarter ended March 31, 2024 (1QFY2024) increased 34.25% year-on-year to RM893.45 million from RM665.49 million, according to MBSB's bourse filing on Thursday.

No dividend was declared for the quarter.

The banking group’s financing expanded to RM42.9 billion from RM39.2 billion in 1QFY2023.

“Corporate and commercial banking was the largest contributor to this growth, adding RM2.2 billion predominantly from the merger exercise with MIDF, while consumer banking delivered an increase of RM1.6 billion, demonstrating continued competitiveness across our consumer financing initiatives,” MBSB said in a statement.

Compared to its immediate preceding quarter, MBSB’s net profit dropped 73.98% from RM301.15 million as the group recorded a one-off gain of RM354 million from the acquisition of MIDF Group in 4QFY2023. Revenue increased 28% from RM698.05 million.

MBSB’s current account and savings account (CASA) ratio stood at 7.6%, while CASA deposits increased to RM3.7 billion in 1QFY2024, from RM2.7 billion in the same quarter a year ago.

Its common equity tier 1 capital — a measure of a bank’s capital strength based on the highest quality of regulatory capital — stood at 19.5%.

MBSB said it will continue raising its CASA level and improving its funding costs moving forward.

“The enhancements in our CASA ratio and robust growth in our non-funded income streams reflect the progress in our transformation workstreams. We are progressing in the right direction towards expanding our market presence," MBSB group chief executive officer Rafe Haneef said.

Shares in MBSB closed two sen or 2.31% higher at 88.5 sen on Thursday, valuing the group at RM7.23 billion.