Malaysia Building Society : 2Q23 presentation slides

2Q23 ANALYST BRIEFING

30 Aug 2023

MALAYSIA BUILDING SOCIETY BERHAD

Registration No.: 197001000172 (9417-K)

1

AGENDA

2Q23 KEY HIGHLIGHTS

Rafe Haneef (GCEO)

2Q23 FINANCIAL PERFORMANCE

Ramanathan Rajoo (CFO)

2

2Q23 FINANCIAL PERFORMANCE

Asset Growth &

Quality

Deposit Growth

Profitability

• Gross financing increased by 4.5% YTD to RM40.3 bil contributed by consumer (up by 3.8%) and corporate/commercial banking (up by 6.3%) segments
• GIFR improved to 6.6% from 7.0% in 1Q23 due to our recovery efforts and financing growth
• Total deposits increased by 9.6% YTD to RM40 bil
• CASA ratio at 5.78% compared to 7.01% in 1Q23
• CASA composition from retail depositors is higher at 55% from 43% in 1Q23
• PBT is RM155 mil, higher than RM84 mil in 1Q23 due to increase in non-funded operating income ("NFOI") of RM23 mil
• PAT is RM84 mil, higher than RM74 mil in 1Q23
• ROE is 3.58% compared to 5.22% in FY22

Capital & Liquidity

• Capital and liquidity position remained stable with CET1/Tier 1 Capital at 18.92% and Total Capital ratio at 23.12%
• LCR increased to 193.37% compared 145.42% in 1Q23

3

2Q2023 FINANCIAL SNAPSHOT

Assets &

Liabilities

(RM'bil)

1Q23		2Q23
Gross Financing/Loans	39.2	40.3
		2022: 38.6
Customer Deposits	37.9	40.0
		2022: 36.5
Gross Income	677	719
		2Q2022: 673
Net Income	268	284
		2Q2022: 388
Operating Expenditure	(127)	(181)
		2Q2022: (137)

Var

1.1 Increase in financing mainly from Consumer (89%) and Commercial (11%).

2.1 Growth in deposit is mainly contributed by growth in Term Deposit

42

Gross Income increased by RM42 mil mainly due to higher financing growth of RM1.1bil and non-funded income from Treasury actvities

16 Net income increased by RM16mil due to higher non funded income during the quarter contributed by Treasury activities.

1. Higher expenses mainly due to one-off reversal of provision in 1Q23. There was also a marginal increase in overhead due to higher personnel and general expenses.

Profitability (RM'mil)

Profit before provision	141	103
(PBT before impairment)		2Q2022: 251
Impairment	(57)	52
		2Q2022: (45)

(38)

109 ECL writeback mainly due to change in the methodology from MIA migration to days-past- due (DPD).

Profit before taxation	84	155
		2Q2022: 206
Profit after taxation	74	84
		2Q2022: 142

70

10

Higher PAT in line with higher total income and ECL writeback.

ROE (Post tax)	3.39%	3.58%
		2022: 5.22%
ROA (Post tax)	0.54%	0.57%
		2022: 0.87%

0.19%

0.03%

Increased in ROE & ROA in line with higher PAT.

Capital & Liquidity

CET1	19.50%	18.92%
		2022: 21.84%
LCR	145.42%	193.37%
		2022: 176.20%

(0.58%) Capital ratio decreased in line with increase in RWA due to Financing Growth.

47.95% LCR well above regulatory minimum requirement.

4

ASSET QUALITY ANALYSIS

GIFR continues to improve across business segments

Total GIFR% (Holding + Bank)

GIFR% Breakdown by Segment (Bank)

7.41%

1.30%

6.76%

1.30%

7.00%

1.32%

6.56%

1.23%

Commercial	22.08%	21.27%

Corporate 12.50%

19.70%

18.36%

12.25%

11.21%

6.11%	5.46%	5.68%	5.33%

9.63%

Consumer	2.09%	1.79%

1.65%

1.65%

3 Q 2 2	4 Q 2 2		1 Q 2 3	2 Q 2 3
			Bank		Holding

3Q22

4Q22

1Q23

2Q23

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