PETALING JAYA: Malaysia Building Society Bhd (MBSB) recorded a net profit of RM58.21 million in first quarter ended March 31, 2022 (Q1’22), a 8.2% drop from the RM63.41 million in the corresponding period last year due to lower non-funded income and higher operating expenditure in technology and personnel related expenses.
Its revenue was 2.4% lower at RM664.55 million versus RM680.98 million in Q1’21 on lower non-funded income mainly due to losses incurred in the sale of treasury investments.
The group’s impairment charge dropped by 9.5% on a year-on-year (y-o-y) basis while minimal modification losses of RM8.96 million were incurred in Q1’22 under the Urus programme. The group recorded a higher gross impaired ratio of 5.89% compared with 4.60% in the preceding quarter mainly arising from the expiry of the repayment assistance and impairment of several corporate financing facilities. MBSB expects gross impaired financing to normalise in subsequent quarters with efforts underway to restructure and recover the financing.
Acting CEO Datuk Nor Azam M Taib said the bank is reaffirming its strategies to grow its business in meeting its current business plan in providing sustainable Islamic financing to customers.
He pointed out that although gross financing grew by only 0.7% in Q1’22, MBSB is set to see higher growth in the coming quarters as some of these financing facilities are at various stages of disbursements.
MBSB expects some margin compression as a result of the recent increase in the Overnight Policy Rate by 25 basis points to 2%, and aims to address this by managing its funding costs.