MBSB Q1 net profit surges to RM166m

KUALA LUMPUR: Malaysia Building Society Bhd's (MBSB) net profit jumped 109 per cent to RM166.14 million in the first quarter to March 31 2013 from RM79.41 million a year ago.

This was buoyed by by its Islamic banking operations and lower impairment losses, MBSB said yesterday.

The company, however, noted that the increase was partially set off by higher operating expenses resulting from higher business volume.

"Despite the challenging environment in the retail market, we maintained our capabilities to sustain business growth that has resulted in enhanced revenue and profit levels," said its president and chief executive officer Datuk Ahmad Zaini Othman in a statement.

"We remain on track to achieve our targets for this financial year," he added.

Based on its headline key performance indicators, MBSB has targeted a 25 per cent revenue increase and 15 per cent growth in return on equity.

At pre-tax level, MBSB's profit surged 114.6 per cent to RM237.11 million from RM110.47 million previously.

Group revenue for the quarter edged up 48.4 per cent to RM562.47 million from RM378.88 million a year ago. Earnings per share was 13.08 sen compared with 6.53 sen.

On a quarter-on-quarter basis, MBSB's pre-tax profit was lower by 3.5 per cent from the RM245.75 million in the quarter ended December 31 2012.

This was mainly due to a gain of RM55.43 million from the disposal of a property then, it explained.

Excluding the one-off gain, MBSB said the pre-tax profit would have improved by RM46.79 million, or 24.6 per cent.