MBSB expects 3.0 pc revenue growth this year | Money
KUALA LUMPUR, June 17 – Malaysia Building Society Bhd (MBSB) forecast 3.0% revenue growth this year as the group strives to generate more revenue streams to meet the target.
Chairman and CEO Datuk Seri Ahmad Zaini Othman said: “What we want to do is increase our income. But at the end of the day, we want to look at the level of the group’s bottom line. MBSB wishes to maintain its profitability trajectory this year.
He was speaking to reporters on the occasion of the company’s 51st annual general meeting held virtually today.
In fiscal year 2020 (fiscal year 2020), the company’s net profit fell sharply by over 62% to RM269.32 million from RM716.90 million in fiscal year 2019.
However, revenue increased 4.4% to RM 3.15 billion from RM 3.01 billion mainly due to higher gains on financial investment sales of RM 249.60 million versus RM 60, RM 02 million previously.
Ahmad Zaini said MBSB is expected to record loan growth of 3% this year, depending on Malaysia’s economic performance.
The group is also pushing the consumer goods segment further, which has provided stable income to its banking branch.
“The personal funding of civil servants gives us greater stability because there is no layoff on the table,” he noted.
Regarding non-performing loans, Ahmad Zaini said the rate increased slightly during the movement control order 3.0 (MCO 3.0) compared to MCO 1.0, but it remains manageable, adding that MBSB offers a targeted approach. to help customers in need.
MBSB was hit with a substantial modification loss of RM 504.75 million in fiscal year 2020 due to the general automatic moratorium granted by the government.
Change loss is now more manageable with the implementation of more targeted assistance.
Nonetheless, he said that MBSB will continue to provide assistance to clients based on their financial situation.
The group has also set itself the goal of being a regional trade finance player as part of its Journey 25 aspiration, when it aims to become a fully mature Islamic financial institution by 2025.
It is also currently considering various forms of business exercise in order to benefit from better access to financing and investments likely to strengthen its capital position.
“We expect our trade finance business to continue to thrive and total deposits will increase further in the second quarter of this year after growing 5.12% in the first quarter,” Ahmad Zaini added. – Bernama