MBSB to expand digital capabilities after strong 2Q showing

By MARK RAO / Pic By TMR File

MALAYSIA Building Society Bhd (MBSB) will continue to ramp up its digital banking capabilities despite economic uncertainties, after posting a strong second-quarter (2Q) financial showing.

“While we are cautious with the economic uncertainties, we will continue with our plans to enhance the level of our customers’ experience and expand digital banking capabilities,” its group president and CEO Datuk Seri Ahmad Zaini Othman (picture) said in a statement last week.

MBSB will be transforming 15 of its 47 branches into digital branches and will be introducing its current account and savings account (CASA-i) online application platform, as well as the e-wallet facility by the end of this year, he said.

For the 2Q ended June 30, the Islamic bank posted a 24% year-on-year (YoY) jump in net profit to RM106.22 million, while revenue rose 3% YoY to RM817.66 million.

The performance was supported by gross loans, financing and advances for the group rising 1.8% YoY to RM36.24 billion which, in turn, was supported by growth in corporate financing.

This was offset by the decrease in personal financing — the group’s largest portfolio and making up 56.2% of total gross loans and financing — which came in weaker due to lower disbursements and a decreasing portfolio base.

For the first half of the year, MBSB’s net profit fell 52.8% YoY at RM190.05 million owing to higher expected credit losses recognised in the 1Q of this year, while revenue came in flat at RM1.6 billion — up only 0.6% YoY.

MBSB became a full-fledged Islamic bank after completing the RM645 million acquisition of Asian Finance Bank Bhd early last year. The merged banking group commanded RM49.66 billion in assets as at the end of the 2Q.