KUALA LUMPUR: MBSB Bhd’s key strategy for 2024 is to continue raising current accounts and savings accounts (CASA) levels and improve its funding costs.
In addition, MBSB aims to leverage the acquisition of Malaysian Industrial Development Finance Bhd (MIDF) in October 2023 by realising synergies between the two entities.
This move is expected to enhance service offerings, introduce innovative products, and deliver personalised solutions, particularly for SMEs and retail customers in the mass affluent segment.
“This strategy will be anchored in our continuous improvement in digitalisation, making it easier for our customers to conduct banking and manage their operations,” MBSB said in a filing with Bursa Malaysia.
In the second quarter ended June 30, MBSB’s net profit tumbled 34.5% year-on-year to RM54.8mil against RM83.7mil previously.
Revenue jumped 35% to RM960.8mil during the quarter compared with RM711.5mil a year ago while earnings per share slid to 0.67 sen versus 1.17 sen previously.
Its net operating income increased by 19.5% from RM365mil in 1Q24 to RM436mil in 2Q24.
MBSB said its net profit margin increased by 42 basis points to 2.6% this quarter, as it continues to focus on improving financing assets and funding costs, as part of ongoing efforts to optimise its balance sheet.
The cost-to-income ratio (CIR) improved, declining to 56.9% this quarter from 58.7% last quarter, as revenue growth significantly outpaced operating expenses. This was achieved even after accounting for one-off losses, highlighting better operational efficiency and strategic cost management.
Its gross financing grew by 4% year-to-date, driven by corporate banking and commercial banking at 8.5% and 17.4% respectively.
“Our gross impaired financing (GIF) ratio also improved, narrowing by 10 basis points to 7.0% from 7.1% last quarter. This improvement reflects our continued commitment to recovery efforts and onboarding better quality customers across the portfolio,” MBSB said in a statement.
“Our capital and liquidity positions remain robust, effectively supporting our ongoing asset growth and positioning us well for future opportunities.
“MBSB remains committed to customer-centric strategies and key growth areas, with a continued focus on enhancing asset quality and liquidity,” it added.
For the first half to June 30, MBSB posted a net profit of RM133.2mil, down 15.6% from RM157.8mil while revenue jumped 34.6% to RM1.85bil against RM1.4bil last year.
