Friday August 31, 2012
Islamic banking lifts MBSB profit
,B> It posts 20% higher Q2 earnings
KUALA LUMPUR: Financial group Malaysia Building Society Bhd (MBSB) reported RM93.65mil in net profit for the second quarter ended June 30, a 19.7% jump from RM78.24mil a year earlier, boosted by its Islamic banking business.
“The improved financial results were mainly due to the increase in net income from Islamic banking operations principally contributed by the retail segment,” the company said in a statement.
MBSB's revenue increased by 54.5% to RM444.47mil from RM287.72mil. Earnings per share were lower at 7.70 sen compared with 10.52 sen previously.
MBSB increased its dividend payout to 4.5 sen from 3.75 sen a share.
In the first half, MBSB's earnings increased by 18.1% to RM173.06mil from RM126.52mil while revenue increased 41.4% to RM823.35mil from RM582.22mil.
MBSB president and CEO Datuk Ahmad Zaini Othman said the growth in revenue from the retail segment was mostly due to good response from customers towards MBSB's personal-financing-i “transfer package” launched early of the year and extended into the second quarter.
“We also saw improved growth in home financing assets especially for those development projects that we finance. Nevertheless, the expansion in retail segment is well supported by a good credit evaluation process resulting in quality assets and applicants,” he said.
Ahmad Zaini said the group's non-performing loan ratio stood at 5.6% as at June 30 from 8.5% as at Dec 31, 2011.
Net loan, advances and financing increased to RM21.9bil as at June 30, up 44% from RM15.2bil as at Dec 31, 2011.