KUALA LUMPUR (June 26): Malaysia Building Society Bhd (MBSB) has reported a net loss of RM73.25 million for the first quarter ended March 31, 2020, compared with a net profit of RM83.83 million a year earlier, due to higher impairment charges on loans, financing and advances.
This was despite revenue rising 2% to RM741.41 million, from RM727.22 million previously, on the back of a higher fixed income profit and gain from sale of investment securities.
Compared to the preceding quarter ended Dec 31, 2019, however, revenue was down by RM42.74 million, mainly due to a drop in financing income from both retail and corporate portfolios following the overnight policy rate cuts in the first quarter of 2020.
In its filing with Bursa Malaysia, MBSB said its deposit level remained consistent at RM36.23 billion during the quarter versus RM34.70 billion previously, while cost to income ratio stood at 30.28%, below the industry average of 44.7%.
Meanwhile, the group’s assets grew 7.13% to RM50.81 billion, from RM47.43 billion a year ago, contributed by growth in financial investments.
Gross impaired financing regressed to 5.51% largely due to the increase in Stage 3 for the retail financing segment, whereas net impaired financing inched up to 2.32% from 2.11% a year ago.
MBSB president and chief executive officer Datuk Seri Ahmad Zaini Othman said: “The operating environment will get tougher as we navigate ourselves amidst the challenges that are presently emerging but we will continue to be resilient.”
“We have identified the key risk areas that can impact the future asset quality and have also immediately revised our key strategies to ensure there is sustainable revenue.
“Our technological advances continued with the launch of the first shariah-compliant e-wallet in March as well as the recent mobile banking application in May,” he added.
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