Malaysia Building Society Bhd’s (MBSB) net profit in the first-quarter (Q1) ended March 31, 2019 dropped 73.54 per cent to RM83.83 million from RM316.79 million a year ago due to higher expected credit losses. NST file pix.

KUALA LUMPUR: Malaysia Building Society Bhd’s (MBSB) net profit in the first-quarter (Q1) ended March 31, 2019 dropped 73.54 per cent to RM83.83 million from RM316.79 million a year ago due to higher expected credit losses.

In an exchange filing today, MBSB said its Q1 revenue decreased 3.80 per cent to RM784.04 million from RM815.04 million over the same period last year, dragged by the decline in personal financing portfolio.

MBSB group president and chief executive officer Datuk Seri Ahmad Zaini Othman said the company had registered stable growths in revenue, net operating income and still maintained a cost to income ratio of 26.34 per cent, despite the on-going challenges including the impact of higher expected credit losses.

“While the Malaysian economic condition remains challenging, we will remain focused in expanding our banking capabilities.

“With this, the bank’s technology transformation shall continue to be in the centre stage. We also aim in increasing our fee income based activities to make up 35 per cent of its income by end of 2020,” Ahmad Zaini said in a statement today.

MBMS’s Q1 net income grew 5.01 per cent to RM365.03 million from RM347.63 million in the same period a year ago.

The group’s Q1 total assets grew 2.12 per cent to RM47.43 billion from RM46.45 billion a year ago, contributed from investments in financial instruments portfolio under global markets division.

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