KUALA LUMPUR (Nov 24): Malaysia Building Society Bhd (MBSB) returned to profitability in the third quarter ended Sept 30, 2022 (3QFY2022) with a net profit of RM58.96 million versus a net loss of RM104.58 million recorded in the same quarter last year.
Better earnings for the quarter were attributed to lower expected credit losses on loans, financing and advances as well as other impairments, which were down by 59% from RM249 million in 3QFY2021 to RM103.4 million in 3QFY2022.
This was offset by an increase in other higher operating expenses which rose 2.5% to RM156.68 million from RM152.8 million.
MBSB’s quarterly revenue slipped 3.88% to RM654.64 million from RM681.05 million, according to its filing.
For the nine months ended Sept 30, 2022 (9MFY2022), MBSB said its cumulative net profit declined 28.4% to RM259.46 million from RM362.25 million. Cumulative revenue in 9MFY2022 slipped 2.54% to RM1.98 billion from RM2.03 billion.
In a statement, MBSB’s chief executive officer Datuk Nor Azam M Taib said the group will be focusing on increasing its overall financing growth to drive its asset base and lower its cost of funds via current account and savings account (CASA) growth in order to enhance profitability.
“MBSB is also targeting to grow its corporate portfolio, focusing on large corporations including Government-linked companies and multi-national corporations.
“Having a significant green portfolio is also a long-term strategy for MBSB. We aim to achieve about 20% to 25% of green financing from the corporate portfolio by 2030,” he said.
MBSB will also prioritise SME financing and support them to adopt low carbon practices by establishing SME Business Centres in key regions nationwide, Nor Azam concluded.
At the closing bell on Thursday, MBSB shares settled up 1.5 sen or 2.56% to 60 sen, giving it a market value of RM4.27 billion.