MBSB aims to increase 20pct total deposit by year-end

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) aims to increase by 20 per cent its total deposit by year-end from RM21.5 billion last year.

Chief Executive Officer Datuk Ahmad Zaini Othman said the company's liability programme would be strengthened with marked improvements in deposit level with total deposit from corporate and retail clients.

"Last year, our total deposit stood at RM21.5 billion, an increase of 59.1 per cent from RM13.5 billion for 2011 and by the end of this year, we are eyeing for more increase," he told a media briefing on May 10.

Ahmad Zaini said MBSB would also increase its capital from RM2 billion to RM3 billion or RM4 billion by implementing the dividend reinvestment plan among its shareholders including bonds, dividends and rights issues.

He said MBSB had reduced its net corporate non-performing loans from 18.7 per cent in 2009 to 4.5 per cent last year through its corporate recovery and project rehabilitation exercises.

"It's a critical first step to begin the recovery of these accounts," he said.

Ahmad Zaini said MBSB's net loans, advances and financing growth last year had increased to RM24.3 billion from RM15.2 billion in 2011 due to its renewed business direction and focus. "These renewed business direction and focus have allowed MBSB to intensely grow its retail assets, largely dominated by the personal financing-i to the government servant segment," he added.

MBSB, a financial provider, offers a spectrum of innovative financial products and services for both individuals and corporates throughout its branches nationwide.

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