Latest news with #MBSBBhd
The Star
26-06-2025
- Business
- The Star
MBSB moves towards major funding rebalancing
PETALING JAYA: MBSB Bhd 's financial year 2025 (FY25) and FY26 are seen as a period of transition that involves a major rebalancing of its funding and financing mix to improve asset quality, says RHB Research. The research house, which had initiated coverage on the stock, noted that the transition would take time to kick in. MBSB continued to hold on to excess capital, which its management intended to utilise for growth while maintaining attractive dividend payouts. Under its Flight26 strategy, the company plans to achieve an 8% return on equity (ROE) by FY26. 'This is premised on a stronger earnings profile from a better funding mix (allowing the group to underwrite better-quality financing without sacrificing net interest margin), enhanced fee income and treasury gains, and operating expenditure discipline,' the research house added. The FY26 target implied a doubling of ROE from the 4% achieved in FY24, albeit below the sector average of about 11%. MBSB commands the highest Common Equity Tier-1 ratio in the sector at 19.4%, with room for further uplift given its sector-high risk-weighted assets density of 74% versus comparable peers' at 55% to 65%. RHB Research said this allowed the group to aim for above-industry financing growth – Flight26 target: FY24-FY26 compounded annual growth rate (CAGR) of 8% – while still preserving capital for consistent and attractive dividend payouts. However, MBSB asset quality metrics lagged that of its peers, it pointed out. MBSB's gross impaired financing (GIF) ratio in 1Q25 stood at 5.5%, well above the 0.5% to 2.2% range of its peers. 'We understand that a significant portion of the group's GIFs come from legacy construction and collateralised personal financing accounts (collectively forming about 30% of total GIFs), but these have a long legal process and recovery period,' it noted. As 95% of GIFs are collateralised, MBSB management is comfortable with its coverage levels, and no significant top-ups to provision buffers are expected. That said, management's focus on lowering cost of funds should allow it to better compete for higher-quality financing, which is positive for future GIF formation and credit cost trajectory. RHB Research projected a 14% FY24-FY27 net profit CAGR, premised on operating income CAGR of 9% from both net financing and non-financing income, positive jaws underpinned by cost discipline and credit costs of 30 basis points (bps) to 35 bps. 'Our earnings forecasts generate an FY26 ROE of 5.4%, which is short of management's 8% target. We also assume a 70% dividend payout ratio versus management's circa 90% informal guidance, which translates to attractive FY25-FY26 yields of 6% to 7%, offering downside support,' it said. It has a 'neutral' call on the stock with a target price of 67 sen per share.
The Star
17-06-2025
- Business
- The Star
Trading ideas: MBSB, FGV, Malakoff, Berjaya Land, Solarvest, Deleum, CIMB, Compugates, Sersol, Poh Kong
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. MBSB Bhd has approved Islamic financing facilities totalling RM180.0mn for Mag Holdings Bhd to strengthen its operations across the halal aquaculture value chain. The Federal Land Development Authority today said it has dispatched the offer documents for its plan to privatise FGV Holdings Bhd , with the offer closing at 5pm on 7 July 2025, unless extended. Malakoff Corporation Bhd 's unit Malakoff Radiance Sdn Bhd has teamed up with New Energy Asia Sdn Bhd to jointly deploy electric vehicle charging infrastructure. Berjaya Land Bhd has signed a memorandum of understanding with Sweden-based SIBS Sdn Bhd to deliver climate-resilient modular housing in Greenland. Solarvest Holdings Bhd has, via a joint venture company, secured a 25-year power purchase agreement with the government of Brunei to invest in, build, and operate a 30MWac solar photovoltaic power plant. Deleum Bhd , through its indirect unit Deleum Oilfield Solutions (Thailand) Co Ltd, is buying Thailand-based MPC Future Co Ltd's oilfield service assets and business for RM60.0mn through a combination of cash and share issuance in a subsidiary. Former head honcho of Securities Commission Malaysia, Datuk Syed Zaid Albar will take over as group chairman of CIMB Group Holdings Bhd from Tan Sri Mohd Nasir Ahmad, effective 20 July 2025. Compugates Holdings Bhd executive director See Thoo Chan has acquired 7.1mn shares or 0.12% stake in Compugates for RM106,299. He now holds a direct interest of 7.9%. Sersol Bhd 's executive director Datuk Mohamed Suffian Awang has reemerged as the company's largest shareholder, after acquiring a 13.7% stake. Poh Kong Holdings Bhd 's 3QFY25 net profit came in almost unchanged at RM47.6mn compared to RM47.7mn a year ago mainly due to higher income tax and operating expenses.
The Star
27-05-2025
- Business
- The Star
MBSB reports 1Q net profit up 8.1% to RM85mil
KUALA LUMPUR: MBSB Bhd has posted a higher net profit of RM84.67mil in the first quarter ended March 31 (1Q25), an 8.1% increase against 1Q24's RM78.34mil, supported by higher net funded income and lower impairment provisions. Revenue was 2.8% lower at RM868.02mil from RM893.45mil previously, the group said in a Bursa Malaysia filing yesterday. 'The lower revenue is mainly due to lower profit income for loans, financing and advances. The impairment allowance for the quarter was RM28.1mil, contributed by additional provisioning for retail portfolios,' the financial services company said. In a separate statement, MBSB said total gross financing remained consistent at RM42.6bil because the group had maintained a disciplined financing posture in line with prevailing market dynamics. Meanwhile, its current and savings account ratio improved to 9.26%, with a RM700mil increase in balances over the year, particularly from commercial and corporate clients. Group chief executive officer Rafe Haneef said its integration with MIDF has opened up new capabilities and created opportunities to reach a broader customer base. He said MBSB's priorities for the remainder of this year include enhancing small and medium enterprise propositions, expanding digital touchpoints, and improving customer experience. 'With transformation initiatives underway, the group remains focused on long-term sustainability and building a more agile, customer-focused organisation,' he added. — Bernama
The Star
26-05-2025
- Business
- The Star
MBSB 1Q net profit up 8.1% to RM84.67mil, new opportunities from MIDF integration
KUALA LUMPUR: MBSB Bhd has posted a higher net profit of RM84.67 million in the first quarter ended March 31, 2025 (1Q FY2025), an 8.1 per cent increase against 1Q FY2024's RM78.34 million, supported by higher net funded income and lower impairment provisions. Revenue was 2.8 per cent lower at RM868.02 million from RM893.45 million previously, the group said in a Bursa Malaysia filing today. "The lower revenue is mainly due to lower profit income for loans, financing and advances. The impairment allowance for the quarter was RM28.1 million, contributed by additional provisioning for retail portfolios,' it said. In a separate statement, MBSB said total gross financing remained consistent at RM42.6 billion because the group had maintained a disciplined financing posture in line with prevailing market dynamics. Meanwhile, its current and savings account ratio improved to 9.26 per cent, with a RM700 million increase in balances over the year, particularly from commercial and corporate clients. Group chief executive officer Rafe Haneef said the integration with MIDF has opened up new capabilities and created opportunities to reach a broader customer base. He said MBSB's priorities for the remainder of 2025 include enhancing small and medium enterprise propositions, expanding digital touchpoints, and improving customer experience. "With transformation initiatives underway, the group remains focused on long-term sustainability and building a more agile, customer-focused organisation,' he added. - Bernama
The Star
20-05-2025
- Business
- The Star
MBSB allocates RM1bil financing to support Malaysia's aerospace sector's growth
KUALA LUMPUR: MBSB Bhd has announced a RM1 billion financing facility to accelerate the growth of Malaysia's aerospace sector. The facility will support the national vision outlined in the Malaysia Aerospace Industry Blueprint 2030 (MAIB 2030), which aims to position the country as a leading aerospace hub in Asia, the group said in a statement today. It said the funding, which is made available through MBSB Bank Bhd and MIDF's development finance facility, is tailored for original equipment manufacturer (OEM) suppliers, as well as Tier 1 and Tier 2 manufacturers. The facility also targets maintenance, repair, and operations (MRO) providers and aerospace companies investing in expansion, automation, engineering, research and development, and talent development, said the bank. Group chief executive officer (CEO) Rafe Haneef said aerospace is not only a high-tech (technology) sector but also a high-impact one. "As Malaysia cements its role in the global supply chain and supplies to major OEMs, the returns to our economy are tangible, from skilled job creation to export value. "Our RM1 billion facility is designed to scale that impact by backing players with the ambition to lead in manufacturing, design and innovation. We are here to fund the future of aerospace, which is precisely where Malaysia can lead,' he said. Meanwhile, National Aerospace Industry Corporation Malaysia (Naico) CEO Shamsul Kamar Abu Samah said Malaysia's aerospace industry reached RM25.1 billion in revenue in 2024, driven by strong growth in MRO and manufacturing. He added that MBSB's RM1 billion facility is a timely boost to this momentum, directly supporting Naico Malaysia's mandate under MAIB 2030 and aligning with the Ministry of Investment, Trade and Industry's New Industrial Master Plan 2030. - Bernama
