KUALA LUMPUR (March 3): Malaysia Building Society Bhd (KL:MBSB) has declared an interim dividend of 1.8 sen per share for the financial year ended Dec 31, 2024 (FY2024).

In a filing with Bursa Malaysia on Monday, the lender said the dividend will be paid on March 27, with an entitlement date set for March 17.

This brings MBSB’s total dividend payout for FY2024 to 4.55 sen per share, higher than the 3.5 sen per share distributed in FY2023. However, it remains below the record-high payout of 8.5 sen per share declared for FY2022.

MBSB’s share price gained one sen or 1.41% to close at 72 sen on Monday, giving the group a market capitalisation of RM5.84 billion. At this price, it translates into a dividend yield of 6.32%.

In a statement, MBSB highlighted its strengthened financial position, with an improved current account and savings account (CASA) ratio of 11.1% and disciplined cost management, keeping its cost-to-income ratio at 54.9%. The lender reaffirmed its commitment to delivering long-term value and sustainable returns to shareholders.

"This dividend declaration reflects our confidence in MBSB’s financial resilience and continued growth momentum,” said MBSB CEO Rafe Haneef. 

“As we celebrate our 75th year, we remain committed to delivering sustainable value to our shareholders while investing in future growth areas such as SME (small, medium enterprises) financing, digital banking, and wealth management,” he added.

For the fourth quarter ended Dec 31, 2024 (4QFY2024), MBSB’s net profit fell 49.69% to RM151.45 million from RM301.15 million in the same period a year earlier. The decline was largely due to the absence of a one-off gain of RM354.4 million recorded in 4QFY2023 from its acquisition of Malaysian Industrial Development Finance Bhd (MIDF).

MBSB completed the RM1.01 billion acquisition of MIDF from Permodalan Nasional Bhd in October 2023.

The lender also attributed the weaker earnings to higher tax expenses, which rose to RM68.47 million from a tax credit of RM9.44 million a year ago, as well as a sharp increase in operating costs to RM25.45 million from RM6.48 million.

Its quarterly revenue jumped 29.65% to RM905.01 million from RM698.05 million, driven primarily by higher profit income from financing and advances.

For the full FY2024, MBSB’s net profit declined 17.28% to RM406.78 million from RM491.81 million in FY2023, on the back of a 31.38% rise in revenue to RM3.71 billion from RM2.82 billion.

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MBSB’s 4Q net profit halves on absence of one-off gain from MIDF acquisition