MBSB's Q2 pre-tax profit declines to RM129.27 million

Malaysia Building Society Bhd's (MBSB) pre-tax profit for the second quarter ended June 30, 2015 declined to RM129.27 million from RM310.89 million in the same quarter last year.

Revenue, however, rose 10.9 per cent to RM765.78 million from RM672.08 million previously, the company said in a filing to Bursa Malaysia today.

In a statement, MBSB president and chief executive officer Datuk Ahmad Zaini Othman said that the upward trend in revenue was due to the group's expansion in the corporate segment.

"It is a conscious effort that we have continued to exert in ensuring that a balanced and healthy exposure is achieved between the corporate and retail segments," he said.

On its business plans, MBSB said it currently supports the government’s National Housing Project by financing several affordable housing projects.

"The group provides end financing for eligible affordable house buyers and plans to increase its industrial hire purchase financing programmes by establishing equipment financing hubs in Penang and Johor Baharu," it said.

Ahmad Zaini said that the group's efforts in putting in place more stringent prudential standards and the overall impairment programmes had increased pressure on its bottom line.

However, he acknowledged that this was something the group had to endure in order to have the entity conform towards a sustainable banking-like platform and maintain a healthy reasonable return on equity.