“MBSB reports 50% 4QFY2024 net profit rise to RM301.15 million, driven by MIDF acquisition. Strategic focus on Casa, growth, and optimization.“
KUALA LUMPUR, 28th Feb 2024 – Malaysia Building Society Bhd (MBSB) reported a 50% increase in net profit for the fourth quarter, reaching RM301.15 million compared to RM200.73 million in the previous year. This significant surge was attributed to a one-off gain of RM354 million resulting from the acquisition of MIDF Group.
In addition to the profit gained from the acquisition, MBSB stated in a filing on Tuesday that the majority of its net income for the quarter ending December 31, 2023 (4QFY2023) originated from loans, financing, and financial investments.
The revenue for the quarter ending December 31, 2023, increased by 4.5%, reaching RM698.05 million compared to RM668.02 million in 4QFY2022. The full-year net profit for the fiscal year ending December 31, 2023, amounted to RM491.81 million, marking a 6.9% increase from RM460.19 million in FY2022. Additionally, the annual revenue saw a 4.7% growth, reaching RM2.82 billion compared to RM2.69 billion in the previous fiscal year.
MBSB experienced a 9% growth in financing for the year, reaching RM42.04 billion, primarily driven by the expansion of both commercial and retail financing. Simultaneously, the group observed a significant increase of 30.58% in customer deposits, totaling RM47.62 billion year-on-year. As of December 31, 2024, the group’s total assets reached RM66.66 billion, indicating a notable 21.3% growth compared to the previous year.
MBSB did not declare any dividends for FY2023.
Looking ahead, MBSB’s CEO, Rafe Haneef, outlined the group’s strategic priorities, emphasizing the expansion of current accounts and savings accounts (Casa), bolstering the financing base, increasing non-funded income, and optimizing operational costs. The Casa ratio for MBSB increased to 7.06%, compared to 6.22% in FY2022, driven primarily by corporate customers and small and medium enterprises (SMEs). Additionally, term deposits witnessed growth, rising by 34.68% or RM9.28 billion.
Rafe further mentioned that the group aims to leverage synergies between MBSB and MIDF to enhance customer service, introduce innovative products, and deliver personalized solutions. This focus is particularly directed towards SMEs and retail customers within the mass affluent segment.
“We have initiated a series of transformative programs, spanning three years, strategically crafted to fulfill these objectives and, ultimately, enhance our return on equity,” stated Rafe.
In October 2023, MBSB successfully concluded the acquisition of MIDF from Permodalan Nasional Bhd (PNB). To fund the acquisition, the group issued new shares valued at RM1.01 billion, priced at 96.52 sen per share. Consequently, PNB became a significant shareholder in MBSB, holding a 12.78% stake, while the Employees Provident Fund saw its shareholding in MBSB decrease from 65.78% to 57.45%.
As a fully owned subsidiary of MBSB, MIDF specializes in three key areas within financial services: investment banking, development finance, and asset management. This encompasses shariah-compliant financing and wealth products.
As of the market close on Tuesday, MBSB shares experienced a decline of one sen or 1.3%, reaching 76 sen and resulting in a market capitalization of RM6.21 billion for the group. The stock had shown a year-to-date increase of 7.04%.
