MBSB’s 2Q net profit contracts 42% to RM84 mil as other operating expenses rose while net income dropped

• On the other hand, revenue rose 8.42% to RM711.53 million from RM656.27 million in 2QFY2022, led by its consumer banking segment. Deposits rose by 9.67% to RM40 billion from RM37.9 billion in 2QFY2022.

KUALA LUMPUR (Aug 30): Malaysia Building Society Bhd (MBSB) reported a net profit of RM83.7 million for the second quarter ended June 30, 2023 (2QFY2023), a decline of 41.18% from RM142.3 million a year ago.

The lower net profit was because other operating expenses rose while net income excluding expected credit losses decreased.

However, the drop was cushioned by a writeback in its expected credit losses on loans, financing and advances and other impairments, according to the financial institution’s filing to Bursa Malaysia on Wednesday.

Earnings per share (EPS) declined to 1.17 sen from 1.98 sen, as a result.

On the other hand, revenue rose 8.42% to RM711.53 million from RM656.27 million in 2QFY2022, led by its consumer banking segment.

Deposits rose by 9.67% to RM40 billion from RM37.9 billion in 2QFY2022, it said in a separate statement.

For the six months ended June 30, 2023 (1HFY2023), net profit slumped 21.3% to RM157.82 million from RM200.5 million a year ago, as an increase in other operating expenses more than offset gains in net other income.

EPS slipped to 2.20 sen from 2.80 sen, as a result.

Revenue, meanwhile, rose 4.26% to RM1.38 billion, from RM1.32 billion.

In the statement, MBSB group chief executive officer Rafe Haneef said, “We are pleased to see an improvement in the net profit this quarter, which reflects the positive trajectory and impact of our focused strategy”.

“In 2Q23, we saw a steady growth in deposits, wherein year-on-year, it grew by 9.67% and quarterly, it grew by 5.54%. We hope that with the consistent drive of our deposit campaigns, customers will recognise the competitiveness of our offerings and will get onboard to subscribe to MBSB Bank’s CASA-i products,” he added.

At the time of writing on Wednesday, the stock was unchanged at 73.5 sen, for a market capitalisation of RM5.24 billion.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!