MBSB

MBSB

Postby winston » Tue Aug 02, 2016 9:21 am

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Chua Ma Yu ups stake in MBSB

Seasoned investor Tan Sri Chua Ma Yu has raised his stake in Malaysia Building Society Bhd (MBSB) to 8.97% from 6.06% through subscription of the company’s rights issue.

The Employees Provident Fund (EPF) remains the single-largest shareholder in MBSB, with a 65.1% stake.


Source: The Star

http://www.thestar.com.my/business/busi ... e-in-mbsb/
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Re: MBSB

Postby winston » Fri Aug 05, 2016 8:42 am

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EPF increases stake in MBSB after rights issues

In a filing with Bursa Malaysia, MBSB explained that the rights shares were at RM1 each, of which the first call of 59 sen for each rights share would be payable in cash on application and the second call of 41 sen for each rights share would be capitalised from MBSB’s share premium account.

It said the first call of 59 sen represented a discount of 29 sen or approximately 33% to the theoretical ex-rights price of MBSB shares of 88 sen based on the five-market day volume weighted average price of MBSB shares up to and including June 8, being the last trading date prior to the date of this announcement, of RM1.1739.


Source: The Star

http://www.thestar.com.my/business/busi ... ts-issues/
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Re: MBSB

Postby winston » Mon Aug 08, 2016 12:11 pm

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Feb 4, 2016

MALAYSIA BUILDING SOCIETY BHD
By MIDF Research

Neutral
Target price: RM1.42

MALAYSIA Building Society Bhd (MBSB), DRB-Hicom and Khazanah Nasional have officially announced that negotiations for the proposed merger of MBSB and Bank Muamalat Malaysia Bhd have come to an end.

It was informed that the parties have not been able to reach an agreement on the terms and conditions of the proposed merger after a series of discussions and negotiations.

Accordingly, the parties have mutually agreed to end all discussions and not proceed with the proposed merger.

The failure of the latest negotiations was not a surprise as it was not the first one after its earlier involvement in the aborted mega merger negotiations with CIMB and RHB.

However, there was no specific reason mentioned for the termination of the latest merger negotiations.

“We suspect it was in relation to disagreement of controlling shareholder structure in the proposed merged Islamic bank. We view it as a lost opportunity to MBSB to expand its assets and deposit base.

“Based on earlier merger assumptions, the merged entity would have a total combined assets of RM63.5bil while deposits from customers of about RM49bil,” said MIDF Research.

As the negotiations have now ended, the research house retains its existing earnings forecasts of MBSB as it has not imputed any incremental earnings from the proposed merger.

MIDF Research reiterates its neutral stance with an unchanged target price of RM1.42 per share.

The valuation is derived based on FY16 price-to-book value (PBV) of 0.75 times, which is justifiably below Malaysia’s banking industry PBV average of 1.2 times, given its non-bank status.

“On its share price performance, we do not expect to see the market reacting negatively to this announcement as we reckon it has already been priced in,” said MIDF Research

Source: The Star
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Re: MBSB

Postby winston » Mon Aug 08, 2016 4:56 pm

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MBSB reports lower Q2 earnings of RM63m

BY JOSEPH CHIN

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) posted lower earnings of RM63mil in the second quarter ended June 30, 2016 from a year ago, due to higher allowance for impairment losses on loans, advances and financing.

MBSB said on Monday its earnings were down 26.3% from the RM85.55mil a year ago. However, its revenue rose 6.1%to RM812.51mil from RM765.78mil. Its earnings per share were 2.21 sen compared with 3.41 sen.

The allowance for impairment losses was higher at RM179.88mil from RM134.25mil a year ago.

“The group profit before tax for the Q2, 2016 of RM74.72mil increased by RM35.619mil as compared to the preceding quarter profit before tax of RM39.10mil. The increase was mainly due to lower allowances for impairment losses on loans, advances and financing,” it explained.

For the first half, its earnings fell 53.3% to RM97.84mil from RM209.86mil in the previous corresponding period.

The decrease was mainly due to higher allowances for impairment losses on loans, advances and financing with the continuation of the impairment programme initiated by the group in the 4th quarter of 2014.

Its revenue rose 11.6% to RM1.625bil from RM1.456bil.

“The increase was mainly due to higher income from investments in liquid assets and higher financing income from corporate segment. The group cost to income ratio remained relatively consistent with the previous year to stand at 23.5%,” said MBSB.

MBSB said gross income from personal financing in the current period was lower compared to the previous year corresponding period due to lower disbursements and decreasing portfolio base.

The gross income from corporate loans and financing in the current period was higher compared to the previous year corresponding period due to the continued growth of corporate loans and financing assets bases.

It added the gross income from mortgage loans and financing was lower compared to the previous year corresponding period due to lower disbursements and decreasing portfolio base.

The gross income from auto finance loans and financing was relatively consistent with the previous year corresponding period.

Source: the Star
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Re: MBSB

Postby winston » Tue Nov 22, 2016 8:40 am

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MBSB in M&A talks again?

BY GURMEET KAUR

“There is interest and parties from both sides are said to be waiting for the central bank’s green light to begin negotiations officially,” said a banking source. “However, the challenge would be meeting the demands of AFB’s diverse shareholders,” noted a banker.

PETALING JAYA: After two failed merger attempts, Malaysia Building Society Bhd (MBSB) is rumoured to be in merger and acquisition talks again, this time with Asian Finance Bank Bhd (AFB), sources say.

AFB is one of the three stand-alone Middle Eastern-based Islamic banks operating in Malaysia.

“There is interest and parties from both sides are said to be waiting for the central bank’s green light to begin negotiations officially,” said a banking source.

“However, the challenge would be meeting the demands of AFB’s diverse shareholders,” noted a banker.

It is known in banking circles that some of AFB’s shareholders are looking to exit and the bank was reportedly in talks for their stakes to be acquired by Malaysian Industrial Development Finance Bhd earlier this year. But the corporate exercise did not materialise, according to banking sources.

AFB is backed by a consortium of shareholders, namely, Qatar Islamic Bank (QIB) with the largest stake at 66.67%, followed by Saudi Arabia’s RUSD Investment Bank (16.67%), Yemen’s Tadhamon International Islamic Bank (10%) and Financial Assets Bahrain WLL (6.67%).

Notably, the bank has not appointed a chief executive officer since the retirement of its previous head honcho Datuk Mohamed Azahari Mohamed Kamil in January this year based on its website – signalling a “transitory period” that could lead to the likelihood of changes in shareholding at the bank.

The bank is currently managed by an Interim Management Committee, which is chaired by treasurer Azidy Daud.

With a capital base of RM532.5mil and assets totalling RM2.62bil, it is the smallest Middle Eastern bank in the country after Kuwait Finance House (M) Bhd and Saudi Arabia’s Al Rajhi Banking & Investment Corp (M) Bhd. AFB has two branches, one in Kuala Lumpur and the other in Johor Baru.

It was mostly loss-making since 2007 before turning around in financial year 2013 after switching its business model to the more stable corporate funding as opposed to small- and medium-sized enterprises previously. The bank made a net profit of RM1.54mil for the second quarter ended June 30, 2016.

The future of Middle Eastern banks in the country has come into focus in recent years because of their paltry returns as fierce competition erodes margins.

In 2014, StarBiz had reported that Qatar-based QIB was looking to divest its strategic stake in AFB. QIB was first linked to the talk that it was seeking to exit a few years ago when Bank Negara mooted the development of a mega-Islamic bank. AFB was said to be a likely candidate for the licence, but that idea did not take off.

MBSB, meanwhile, has been trying to transform into an Islamic bank in one way or another to increase its competitiveness.

In February this year, the non-bank lender aborted its proposed merger with Bank Muamalat Malaysia Bhd, reportedly due to disagreements over valuation and control.

Prior to that, MBSB was part of a failed three-way merger with CIMB Group Holdings Bhd and RHB Capital Bhd that was called off in January last year amid falling oil prices.

Without a merger partner, the company can still grow on its own, albeit at a slower pace.

MBSB’s single-largest shareholder is the Employees Provident Fund (EPF) with a 65.4% stake.

EPF chief executive officer Datuk Shahril Ridza Ridzuan recently said that the non-bank financial provider was working with Bank Negara to revamp to bring it up to bank standards and was looking at a solution towards entering the mainstream market.

The fund injected RM1.3bil into the company to subscribe to its portion of the company’s rights issue in March to raise up to RM2bil to strengthen its core capital and increase its leverage ratio to at least 12.5%, in compliance with regulatory requirements hoping to secure a banking licence in the next two or three years.

The other substantial shareholder in the company is Tan Sri Chua Ma Yu, whose stake is now 8.97% from 6.06% through subscription of the rights issue.

The seasoned investor emerged as a substantial shareholder in MBSB in March this year.

MBSB, which has assets totalling RM42.57bil, has a strategic focus to increase its corporate loans/financing segment.

In the second quarter ended June 30, it posted a lower net profit of RM63mil, down 26.3% from a year ago due to a higher allowance for impairment losses on loans, advances and financing.

Corporate loans accounted for 16.9% of total loans as at that period, while personal financing was at 66.2% of its loan book and mortgage financing at 15.7%.

Its shares are down 32.91% year-to-date. The stock ended yesterday at 91.5 sen, up 15 sen with 3.58 million shares being done. At this level, it is trading at a price-to-book value of 0.53 times.

Source: The Star

http://www.thestar.com.my/business/busi ... lks-again/
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Re: MBSB

Postby winston » Fri Nov 25, 2016 8:57 am

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MBSB income continues to decline on impairment losses

BY S. PUSPADEVI

Revenue for the period was 8.1% higher at RM830.25mil from RM768.03mil, the previous year, due to higher income from investments in liquid assets and higher financing income from corporate segment. This translated to basic earnings per share (EPS) was 1.18 sen from 2.24 sen.

PETALING JAYA: Non-bank lender Malaysia Building Society Bhd’s (MBSB) net profit fell 8.8% to RM57.93mil for the third quarter ended Sept 30, 2016 from RM63.53mil in the same period, a year ago, on higher allowances for impairment losses on loans, advances and financing.

Revenue for the period was 8.1% higher at RM830.25mil from RM768.03mil, the previous year, due to higher income from investments in liquid assets and higher financing income from corporate segment.

This translated to basic earnings per share (EPS) was 1.18 sen from 2.24 sen.

MBSM told the exchange that although the lender’s cost to income ratio was relatively consistent at 22%, contributions from operating business segments across the board were lower during the period, except for corporate loans and financing division.

“The gross income from corporate loans and financing in the current period was higher compared to the previous year corresponding period due to continued growth of corporate loans and financing assets base,” it said in its filings.

For the cummulative nine months, MBSB’s net profit dropped 43% to RM155.77mil from RM273.40mil, a year ago, on the back of a 10.4% hike in revenue at RM2.46bil from RM2.22bil. EPS dropped to 4.40 sen from 9.87 sen.

MBSB embarked on a ‘closing the gaps’ exercise since 2010 to bridge its framework to be in line with banking standards and best practices.

In a separate statement, the RM5.3bil market cap company said its total assets stood at RM44.53bil as at Sept 30, up 8.37% from RM41.09bil on Dec 31, 2015, mainly due to increase in liquefiable assets and growth in net financing and loans.

“Growth in gross financing and loans shows a positive trend of 1.64% at RM35.37bil in the third quarter compared with RM34.8bil in the second quarter,” it added.

MBSB president and chief executive officer Datuk Ahmad Zaini Othman said despite the adverse economic environment and its on-going impairment programme, third quarter performance shows improved profitability.

Its net impaired financing ratio stood at 2.91% as at Sept 30, 0.38% lower from the second quarter’s 3.29%.

Despite the challenging environment, MBSB’s deposit level was 10.05% higher at RM31.46bil in the third quarter compared with RM28.59bil in December 2015.

MBSB shares closed at 91 sen yesterday, down 1.5 sen.

Source: The Star

http://www.thestar.com.my/business/busi ... nt-losses/
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Re: MBSB

Postby winston » Wed Dec 21, 2016 7:47 pm

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Malaysia's MBSB renews merger attempt, eyes tie-up with Asian Finance Bank

Dec 21 Malaysia Building Society Bhd (MBSB) will begin merger talks with Asian Finance Bank Bhd (AFB) in its third attempt in about two years to convert into a full-fledged Islamic lender.

The non-banking lender said in a bourse filing on Wednesday that it had received a letter from Bank Negara Malaysia in which the central bank said it had "no objection in principle for MBSB to commence negotiations with the existing shareholders of AFB".

The central bank requires that the negotiations be completed within six months, MBSB said.

AFB is co-owned by Qatar Islamic Bank, RUSB Investment Bank Inc, Tadhamon International Islamic Bank and Financial Assets Bahrain WLL.

MBSB had previously entered into talks with Bank Muamalat Bhd for a merger that would have created the largest standalone Islamic bank in Malaysia, but the talks fell through in February this year.

In January 2015, talks of a three-way tie-up between MBSB, CIMB and RHB to create Malaysia's biggest bank by assets collapsed.

Source: Reuters
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Re: MBSB

Postby winston » Sun Jan 15, 2017 6:19 am

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Merger optimism, valuations spark MBSB rally

BY AFIQ ISA

“The impairments are coming to an end this year and beneath the provisions, you can clearly see a profitable and competitive financial entity”


A merger with AFB would enable MBSB to obtain its banking license, which will open new business avenues such as collecting current account and savings account (CASA) deposits as well as interbank instruments.

Based on a price-to-book multiple of 1.5 times, the acquisition price for AFB would be around RM750mil, according to Affin Hwang Capital Research in a recent note.


“MBSB wants the commercial banking license and AFB wants access to the group’s strong retail base. It’s a win-win,” said an investment banker.

AFB’s shareholders are the Qatar Islamic Bank (66.67%), RUSD Investment Bank (16.67%), Tadhamon International Islamic Bank (10%) and Financial Assets Bahrain W.L.L (6.67%).


The rights exercise raised gross proceeds of RM1.71bil and was primarily used for the purchase of liquid securities as well as business expansion needs, serving as a buffer for its balance sheet and mitigating the need for further cash calls in the future.


Having hovered close to the theoretical ex-rights price of 88 sen from September to January, MBSB’s shares rose swiftly to break the RM1 mark on Jan 11, or the highest in ten months.


MBSB remains confident of concluding its two-year impairment program by this year which is estimated to total some RM1.9bil.

On average, this involved making provisions for bad loands of about RM200mil or so per quarter, which in turn has impacted MBSB’s overall income since the program began in late 2014.


Source: The Star

http://www.thestar.com.my/business/busi ... bsb-rally/
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Re: MBSB

Postby winston » Tue Feb 07, 2017 6:54 am

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17 January 2017

MIDF downgrades MBSB to neutral

KUALA LUMPUR: MIDF Research has downgraded Malaysia Building Society Bhd (MBSB) to “neutral” from “buy” previously, with an unchanged target price of RM1.08 as it believed the stock is fairly valued at current level.

MBSB’s shares have surged 20% since the start of the year to high of the day of RM1.09 yesterday.

“We are not surprised that the stock has rallied to the current level as we opine negative side on the company’s past quarterly results had been flushed out of the market and eventually, its share price has reacted positively to its FY17 earnings prospect, reflecting our view on the company,” MIDF said, adding that the stock was expected to consolidate at this level after a strong recent price action.

The research house also believed that the price rally of late is related to positive expectations of negotiations on a proposed merger with Asian Finance Bank Berhad (AFB).

Recall that Bank Negara requires that the negotiations be completed within six months from the date of central bank’s letter on Dec 21, 2016.

“Having said that, we do not see any significant impact from the proposed merger to the company’s FY17 earnings prospect despite if MBSB were able to complete the proposed merger with AFB this year.

“We are of the view that it would take time for the management to make use of the full fledge banking license. Therefore, we view all positives should have already been priced in the current rally,” MIDF said.

“We make no changes to our earnings forecast at this juncture. Our existing forecasts are based on its current non-banking operations, which will see its FY17 earnings growth of 40% from a low base and improvement in its asset quality,” it added.

Source: The Star
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Re: MBSB

Postby winston » Wed Feb 22, 2017 7:51 pm

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MBSB net profit at RM201.4mil in FY16

MBSB posts RM201.4mil net profit in FY16: Malaysia Building Society Bhd (MBSB) posted a net profit of RM45.6mil for the fourth quarter, reversing a net loss of RM15.8mil a year earlier, on lower allowances for impairment losses on loans, advances and financing and higher net operating income.

Revenue came in lower at RM819.4mil from RM825.68mil previously.

For the full 2016 financial year, MBSB posted a net profit of RM201.4mil, The board recommended a single-tier final dividend of 3 sen per share for the year.

Source: The Star

http://www.thestar.com.my/business/busi ... l-in-fy16/
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