MBSB profit after tax rose to RM417m or a 107% increase in FY17

MBSB profit after tax rose to RM417m or a 107% increase in FY17

January 30, 2018 0 By WFTV

MBSB Group reported a Profit After Tax (PAT) of RM417.13 million for the full Financial Year
Ended 31 December 2017, a 107.1% or RM215.71 million from the RM201.41 million posted in the previous Financial Year Ended 31 December 2016 (FYE 2016).

Their Profit Before Tax (PBT) of RM550.73 million (FYE17) showed a major improvement of 62.74% or RM212.31 million compared to RM338.42 million (FYE16).

Major takeaways of MBSB Group financial results for the twelve (12) months ended 31 December 2017:
 Profit After Tax (PAT) for the FYE 31 Dec 2017 (FYE17) increased by 107.10% to RM417.13m
 Total assets grew by RM1.54 billion or 3.56% y-o-y to RM44.81 billion as at 31 Dec 2017
 Total deposits increased by RM2.14 billion or 7.00% from December 2016 to RM32.76 billion
 Net Return on Average Equity increased from 3.48% in (FYE16) to 6.02% (FYE17)
 Net impaired financing/loans ratio (NIFL) improved from 2.87% (FYE16) to 2.11% (FYE17)

The substantial increase in profits is mainly attributed by the lower cost of funds and lower
allowances for the impairment losses on financing, loans and advances.

Datuk Seri Ahmad Zaini Othman, MBSB’s President and Chief Executive Officer said: “With the ending of the impairment program in 4th quarter of 2017, we have achieved what we had planned when it was first initiated in the 4th quarter of 2014.

“Our 4Q17 and FYE 2017 results were partly attributed by strengthened collection efforts which in turn have reduced the impairment allowance for the year.”

The Group’s gross financing and loans contracted slightly by 3.07% y-o-y from RM35.28 billion (FYE16) to RM34.20 billion (FYE17).

This was due to the reclassification of selected impaired retail financing and loans to Financial Assets Held-for-Sale and which sale is expected to be completed in the first quarter of this year. Nevertheless, Gross Corporate Financing and Property Financing have recorded notable annualized growths of 10.01% and 16.29% respectively.

Ahmad Zaini said: “We remained to be selective in growing our financing assets but certain corporate segments have continued to be viable and we have managed to secure substantial financing stock moving into the new year from these segments”.

The Group registered a revenue of RM3.26 billion for FYE17 and RM818.27 million for 4Q17
which are consistent with RM3.27 billion (FYE16) and RM816.87 million (3Q17).

The revenue is generated from the Total Assets of RM44.81 billion as at 31 December 2017, a 3.56% growth or RM1.54 billion from RM43.27 billion as at 31 December 2016. The rise in Total Assets is contributed by the higher investments in liquefiable assets.


Commenting on the Group’s outlook, Ahmad Zaini said: “We are certainly excited with the prospects of the new platform upon completion of the merger exercise.

“While we shall remain committed to doing what has always been profitable, for example the
affordable housing projects and the penetration in selected SME sectors but rolling out new
products in the immediate years shall be a very positive development for the new entity. We
intend to add value by establishing new delivery channels as this shall help to bring
prospective customers on board.”