MBSB rebounds to record net profit in Q2 2021, despite lower revenue

KUALA LUMPUR, Malaysia Building Society Bhd (MBSB) recorded a net profit of RM403.41 million in the second quarter ended June 30, 2021 (Q2 2021), from a net loss of RM12.51 million in the same period a year ago, contributed mainly by writebacks on impairment.

Revenue for the quarter, however, eased to RM664.94 million from RM886.35 million a year earlier mostly due to lower gain from sales of financial investments in Q2 2021.

MBSB acting group president and chief executive officer Datuk Nor Azam M Taib said the results were mainly attributed to lower expected credit loss, which contributed to net writebacks for impairment following improvement of staging for its 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,” he said in a statement today.

MBSB’s total assets for the quarter increased marginally by 1.80 per cent quarter-on-quarter to RM50.84 billion in Q2 2021 from RM49.94 billion in Q1 2021, mainly in financial investments and net financing amount.

The bank’s total assets saw a year-on-year increase by 4.63 per cent from RM48.59 billion in Q2 2020.

Meanwhile, deposits increased by 0.22 per cent to RM35.68 billion in Q2 2021 against RM35.60 billion in Q1 2021 and 4.97 per cent against RM33.99 billion in Q2 2020.

On MBSB’s key financial ratios, cost to income ratio stood at 24.01 per cent in Q2 2021, marginally lower quarter-on-quarter against 24.03 per cent in Q1 2021.

The common equity tier ratio dipped slightly quarter-on-quarter to 21.06 per cent in Q2 2021 against 21.20 per cent in Q1 2021.

The group’s liquidity coverage ratio stood at 220.09 per cent in Q2 2021 compared with 202.67 per cent in Q1 2021, in compliance with Bank Negara Malaysia’s requirement.

On MBSB’s expectations for the next quarter, Nor Azam said with the gradual reopening of the economy, its main subsidiary MBSB Bank Bhd is optimistic that it could further strengthen its position and explore new initiatives.

“We hope to see an improvement in the political front as political stability impacts consumer sentiment,” he said.

Source: BERNAMA News Agency