MBSB Q2 earnings climb 41% to RM232.85m (Update)

Malaysia Building Society Bhd (MBSB) reported its earnings rose 41% to RM232.85mil in the second quarter from RM165.10mil a year ago.

It said on Thursday its revenue rose 9.4% to RM672.08mil from RM614.29mil. Earnings per share were 8.85 sen compared with 9.78 sen.

In a filing to Bursa Malaysia, MBSB said the increase was mainly due to lower allowances for impairment losses on loans, advances and financing as well as higher profit and interest income from corporate business and auto financing.

However, its personal financing gross income was lower due to the reducing growth of personal financing portfolio from lower disbursements.

Meanwhile its corporate loans and financing were higher due to the increasing growth of corporate loans and financing portfolio.

It said that its mortgage loans and financing was lower mainly due to low disbursements as compared to higher total collections and redemptions.

For the first half, its earnings rose 29.6% to RM429.59mil from RM331.25mil in the previous corresponding period. Revenue increased by 13.8% to RM1.339bil from RM1.176bil.

Since Bank Negara Malaysia’s announcement on the measures to further promote a sound and sustainable household sector in July 2013, MBSB expects growth of the group’s personal financing and mortgage portfolios to be more challenging in 2014.

Barring any unforeseen circumstances, the group expects performance in the second half of 2014 to be satisfactory