MBSB looks forward to better year

Friday, April 30, 2010


MBSB looks forward to better year


Malaysia Building Society Bhd (MBSB), a housing loan provider, expects higher revenue and net profit this year on stronger growth from its retail business and corporate financing.

"The retail business financing will be supported by personal financing to government servants at a competitive rate. We will support any effort by the government to provide home-financing for government servants for second homes," said MBSB chief executive officer Datuk Ahmad Zaini Othman.

He was speaking to reporters after the company's shareholders meeting in Kuala Lumpur yesterday.

As for its corporate loan portfolio, MBSB will provide financing for government contracts which includes construction and supply or even project financing, said Ahmad Zaini.
For its financial year ended December 31, MBSB saw its revenue grow 29 per cent to RM537.96 million, while net profit surged 76 per cent to RM57.2 million.

Its retail loans and financing in 2009 was up 27.1 per cent, driven by a 101 per cent overall growth in Islamic financing.

"We came out from a difficult 2009. With the local economy forecast to grow between 4.5 per cent and 5 per cent, MBSB expects earnings to improve as well," said Ahmad Zaini, adding that improved domestic consumption would spur its lending activities.

While the local overnight policy rate may increase further this year, he said MBSB will continue to offer competitive rates for its products.

On its plan to become a full-fledged bank, MBSB said the rationale behind it was to strengthen its presence and a banking platform would allow it to do so.

"Currently, we are just at the discussion stage and have not submitted anything official as it will require shareholders' approval first. Moving from a mere lending institution to a bank will also enhance the value for our shareholders," said Ahmad Zaini.

With some 32 branches at present, MBSB will add one in Sabah or Sarawak and two in Peninsular Malaysia this year.

On the development plans for its 2ha land in Sungai Buloh, Selangor, Ahmad Zaini said a possibility was to have a mixed development with an estimated gross development value of RM300 million to RM400 million.

By Business Times