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MBSB net profit jumps 123% to RM325m

KUALA LUMPUR (Feb 3): Malaysia Building Society Bhd (MBSB) saw its bottom line soaring 122.87% to RM325.4 million last year compared with RM146 million a year earlier. The improved performance was on the back of higher income from its Islamic banking operation via the expansion of personal financing.

Its revenue also increased by 63.6% to RM1.26 billion from RM769.9 million in 2010 while its basic earnings per share rose to 32.43 sen from 20.85 sen.

MBSB also recommended a final dividend of 7% less 25% income tax (5.25 sen net per ordinary share) for FY11 ended Dec 31. This will bring total dividends to 12% for FY11 in view of the 5% interim dividend paid during the year.

"Our group's improved performance for the 12 months of 2011 is the result of the company's persistent efforts to grow its retail business in the face of stiff market competition.

"Continuous operational improvements as targeted under the transformation programme, Taking MBSB to the Next Level, have also contributed to the exceptional results," said MBSB's CEO Datuk Ahmad Zaini Othman.

He added that while the Personal Financing-I (PF-i) scheme has largely driven its asset growth, the group's strategy to diversify its asset portfolio since the beginning of last year had also shown remarkable progress.

Meanwhile, MBSB's 4QFY11 also saw net profit rising to RM83.8 million from RM12.8 million in the previous corresponding quarter, a 554.7% jump.

Its revenue for the quarter also improved to RM347.1 million from RM208.9 million previously, a 66.1% rise.

According to MBSB, its net loan, advances and financing stood at RM15.2 billion as at Dec 31, 2011, an increase of 42% compared with RM10.7 billion as at Dec 31, 2010, exceeding the banking industry's average growth rate of 13.6%.

It said civil servants remain supportive of MBSB's PF-i mainly due to its high affordability and the offer of several financing packages to suit their different needs.

The company also noted an improvement in its total net non-performing loans ratio to 8.8% for FY11 from 15.7% in FY10.

"This is principally due to the restructuring of major corporate legacy accounts achieved in the same year and an expansion of financing and loan bases," it said.

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