MBSB posts RM40.5m net profit in 3Q

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) net profit for the third quarter ended Sept 30, 2010 fell to RM40.51 million from RM52.68 million a year earlier, due mainly to higher impairment losses on loans advanced and lower income from Islamic banking operations.

Its revenue for the quarter however jumped to RM317.66 million from RM162.37 million in 2009.

For the nine months ended Sept 30, MBSB's net profit surged to RM133.21 million from RM66.91 million a year earlier, due mainly to higher loan and financing income, especially from the expansion of personal financing and higher other operating income from personal financing activities.

These were partly set off by higher operating expenses and higher loan loss impairment, it said in a filing to Bursa Malaysia on Thursday, Oct 21.

MBSB chief executive officer Datuk Ahmad Zaini Othman said the company’s sustainability of its profit for the current quarter was due to the right strategies adopted.

He said that as at Sept 30, net loan, advances and financing stood at RM10.5 billion, an increase of 30% as compared with RM8.1 billion as at Dec 31, 2009.

“Expansion of the personal financing sector is the main reason for the impressive growth and we will continue to provide funding to the civil servants at reasonable costs,” he said.

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