KUALA LUMPUR (May 28): MBSB Bhd (KL:MBSB) said on Thursday its net profit fell 64% in the first quarter from a year earlier as a jump in provisions and decline in interest income offset non-interest income gain.

Net profit at the financial services firm was RM30.14 million for the three months ended March 31, 2026 (1QFY2026) versus RM84.7 million in the same quarter last year. Expected credit losses — provisions to cover bad debts or financing turning sour — totalled RM73.58 million during the quarter.

Net interest income was down 39% while non-interest income, such as fees and trading gains, was nearly 70% higher. Overall, total income was down 26% year-on-year to RM260.48 million.

“MBSB is positioned to navigate the operating environment steadily and build on this quarter's performance” thanks to its healthy capital base, improving financing momentum, and continued progress on building current-account-savings-account, the company said in a statement.

MBSB is targeting gross financing growth of 7%-8%. Excluding writeoffs, gross loans, financing and advances expanded nearly 8% in the first quarter from a year earlier.

The firm is also targeting a return on equity of 5%-6% and net profit margin of 2%.

No interim dividend was declared.

Shares of MBSB were down one sen or 1.5% to 66.5 sen ahead of the results announcement amid a broader selldown in financial services stocks. The company’s market capitalisation was RM5.5 billion based on its last price.