Malaysia Building Society Berhad : MBSB Records 62.90% Increase In Profit After Tax (PAT) At RM438.71 Million For 2021

MALAYSIA BUILDING SOCIETY BERHAD(MBSB)
Registration No.197001000172 (9417-K)
PRESS RELEASE
STRATEGIC MARKETING AND COMMUNICATIONS
DEPARTMENT
Level 25, Menara MBSB Bank,	KENYATAAN AKHBAR
Lot 12, PJ Sentral,
Persiaran Barat,	For Immediate Release
Seksyen 52, 46200,
Selangor,	24 FEBRUARY 2022
Website: www.mbsb.com.my

MBSB RECORDS 62.90% INCREASE IN PROFIT AFTER TAX (PAT) AT RM438.71

MILLION FOR 2021

Highlights on Financial Year Ended 31 December 2021

• Profit After Tax (PAT) for Financial Year Ended 31 December 2021 (FYE21) recorded at RM438.71 million, a 62.90% increase against RM269.32 million in FYE20
• Revenue registered lower at RM2.62 billion in FYE21 compared to RM3.15 billion in FYE20
• Net income increased to RM1.34 billion in FYE21 against RM1.29 billion in FYE20
• Total Assets improved to RM50.68 billion in FYE21 compared to RM48.44 billion in FYE20
• Deposits fell marginally to RM33.25 billion in FYE21 from RM33.88 billion in FYE20
• Cost to Income Ratio (CIR) increased by 8.33% to 32.78% in FYE21 from 24.45% in FYE20
• Common Equity Tier (CET-1) improved by 0.73% to 21.50% in FYE21 from 20.77% in FYE20

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Petaling Jaya, 24 February 2022: Malaysia Building Society Berhad (MBSB) today announced its financial results for the financial year ended 31 December 2021 (FYE21).

The Group's Profit After Tax (PAT) increased by 62.90% or RM169.39 million to RM438.71 million for FYE21 compared to RM269.32 million in FYE20 contributed by lower impairment following an improvement of customer staging. The Group continued to recognize modification loss arising from continuous moratorium from Government initiatives such as the PEMULIH programme.

However, the Group's revenue at RM2.62 billion declined by 16.83% or RM530 million against RM3.15 billion in the same period last year. This is mainly contributed by the decline in financing and investment income due to the full year impact of overnight policy rate (OPR) cuts in 2020 and a decline in gain from sale of financial investments during the year.

The Group's net income before impairment increased slightly by 3.88% or RM50 million at RM1.34 billion in FYE21 against RM1.29 billion in FYE20 due to lower modification loss during the year.

MBSB's Acting Chief Executive Officer Datuk Nor Azam M Taib said, "While we were impacted by the OPR cuts and modification loss, we remained resilient and had a healthy growth despite the 2 years of economic uncertainties caused by the pandemic."

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He added, "We continued to maintain our asset quality and have converted a portion of conventional mortgage to Islamic property financing in 2021. We also continued to disburse property financing resulting in growth of the home financing asset base."

The Group's total assets increased by 4.62% or RM2.24 billion to RM50.68 billion compared to RM48.44 billion in FYE20. This is mainly contributed by the increase in financial investments and increase in net loans, financing and advances. Deposits fell marginally to RM33.25 billion in FYE21 from RM33.88 billion in FYE20.

On the Group's profitability ratio, Cost to Income Ratio (CIR) saw an 8.33% increase to 32.78% in FYE21 compared to 24.45% in the same period last year due to the increase in operating expenses from investments in technology, while the Group's Return on Equity (ROE) improved to 5.00% in FYE21 against 3.08% in FYE20 as a result of higher PAT.

Common Equity Tier (CET-1) improved by 0.73% to 21.50% in FYE21 against 20.77% in FYE20. Liquidity Coverage Ratio (LCR) increased by 31.59% to 234.68% compared to 203.09% in FYE20. The Group also declared dividend for the year 2021 amounting to RM215.14 million on 17 December 2021 at 3.0 sen per share. The dividend was paid on 12 January 2022.

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Datuk Nor Azam also shared some of the important developments at the Group's wholly-owned subsidiary, MBSB Bank for the fourth quarter of 2021 (4Q21) where the Bank's Current and Savings Account (CASA) ratio grew to 3.98% in 2021 from 2.34% in 2020. The Bank also made significant investments in technology, mainly to strengthen cyber-security, improve efficiency and enable new business capabilities.

The Bank also continues to waive fees for cash withdrawals made at all its Automated Teller Machines (ATMs) until 31 December 2022. For small and medium enterprises, the Bank offers a CAKNA scheme that shortens the time for contractors under the Govt's ePerolehan system to receive payments for work done to alleviate their cashflow constraints.

On another development, the Bank was also recognised by the industry players and received an award at the CSR and Sustainability Malaysia Award under the Financial Institution category as well as from Cambridge IFA for the Best Upcoming Islamic Retail Bank in Malaysia at the Islamic Retail Awards 2021.

Staying committed to its sustainability path, MBSB Bank recently announced a RM5 billion Sustainability Sukuk Programme, where proceeds raised will be utilized to finance companies that are pursuing green economy that adopt ESG practices.

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Moving forward, Datuk Nor Azam added, "We have set out a 2022-2023 Strategic Roadmap, which has outlined a two-pronged strategy to enhance return on equity and stakeholder value. New businesses are being identified to expand revenue streams and we will continue to enhance existing businesses to improve competitiveness and meet market expectations.

He continues to say that the focus continues to be on the SME market and is already planning on digital collaboration to develop Fintech solutions such as cross border payment.

- END-

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