Booking.com

Booking.com

Favorite Links

Wednesday, July 18, 2012

MBSB expects another year of record profits

By B.K. SIDHU
bksidhu@thestar.com.my

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) expects another year of record profits this year after posting record gains for three consecutive years, said its president/chief executive officer Datuk Ahmad Zaini Othman.
He did not give any figures but said the higher profits would be possible because MBSB expected 20% loan growth this year and non-performing loans to be lower at 6% compared with 8% last year.
MBSB's net profit for the financial year ending Dec 31, 2011 was RM325mil and for the first quarter ended March 31, 2012, the institution reported a 16.31% rise in net profit to RM79.4mil. The increase was mainly due to higher income from its Islamic banking operation.
Analysts are expecting the group to report RM360mil to RM377mil net profit for the full year. For 2010 and 2009, the group reported net profit of RM146mil and RM57mil respectively.
“There are so many things that we had been doing over the last three years and we had been hitting record profits, this year we will again achieve record profits,'' he told StarBiz.
As at the end of last year, total deposits from corporate and retail clients stood at RM13.5bil, which was a 29% increase from RM10.5bil in 2010.
MBSB's net loans and advances grew 42% to RM15.2bil in 2011 and its assets was RM17.36bil as at the end of last year.
Zaini pointed out that the group was not having any funding issues, although a recent media report quoting analysts did allude to that.
“As a financial institution which is taking deposits to the tune of RM17bil to RM18bil, we have enough support from investors and lenders and we are growing our business very well. Why should there be any issues? We may not come under the purview of Bank Negara, but we have enough checks and balances put in place to avoid any systemic risk.
“We cannot be grouped with some other cooperatives, such as RCE Capital, as they do not collect deposits from the public or government agencies and corporates. But we do, and this creates a negative perception in the market place for us,'' he said.
He also explained that MBSB was now a “totally different organisation'' from the past and it was more aggressive and dynamic now and was able to compete aggressively alongside banks for loans.
“The MBSB of (yester-years) had legacy loans, profitability and operational issues. But since I came on board in 2009, we have transformed the group and put in processes and stringent procedures that normal banks have. We have credit and profit risks management systems, credit scoring and even CCRIS (central credit reference information system) in place.
“In fact, we have re-engineered the institution so much that our personal financing packages are the most competitive in the market place,” he said.
MBSB is 65% owned by the Employees Provident Fund and based on its share price closing yesterday at RM2.43, it has a market capitalisation of about RM3bil.

Source: http://biz.thestar.com.my/news/story.asp?file=/2012/7/18/business/11681303&sec=business

No comments:

Post a Comment