KUALA LUMPUR (Aug 27): MBSB Bhd (KL:MBSB), the financial holding company of MBSB Bank Bhd and Malaysian Industrial Development Finance Bhd (MIDF), saw its net profit for the second quarter ended June 30, 2024 (2QFY2024) drop 34.5% to RM54.83 million, from RM83.7 million a year earlier, on higher operating expenses (opex) and impairment allowances.

It recorded opex of RM241.7 million and total impairment allowances of RM98.5 million in the current quarter, higher than both 2QFY2023 and 1QFY2024. The group reported higher impairment allowances in 2QFY2024 mainly due to higher write backs in 1QFY2024.

As a result, earnings per share came in lower at 0.67 sen for 2QFY2024 compared with 1.17 sen for 2QFY2023.

Quarterly revenue, however, grew 35% to RM960.85 million from RM711.53 million in 2QFY2023, primarily due to increased financing income and contributions from MIDF integration.

In a filing with Bursa Malaysia on Tuesday, MIDF said net income (pre-impairment) also jumped 53.2% to RM435.92 million from RM284.57 million.

The group did not declare any dividend for 2QFY2024.

For the first half of FY2024 (1HFY2024), MBSB’s net profit fell 15.6% to RM133.17 million from RM157.82 million a year ago, despite revenue climbing by 34.7% to RM1.85 billion from RM1.38 billion in 1HFY2023.

Looking ahead, MBSB said its key strategy for 2024 is to continue raising current accounts and savings accounts (CASA) level and improve its funding costs.

"Further, with the completion of the acquisition of MIDF in October 2023, the group aims to realise synergies with MIDF to offer customers better service, innovative products, and personalised solutions, particularly for small and medium enterprises and retail customers in the mass affluent segment.

“This strategy will be anchored in our continuous improvement in digitalisation, making it easier for our customers to conduct banking and manage their operations,” it added.

Shares of MBSB closed unchanged at 84 sen on Tuesday, giving it a market value of RM6.91 billion. The stock has risen 18.31% so far this year.