Newsroom
Kuala Lumpur, 16 November 2011 - The Malaysia Building Society Bhd (MBSB) today announces that it had signed an agreement of RM1.0 billion with Recourse Securitisation of Personal Financing Receivables & Conventional Mortgage Assets with Cagamas through Maybank Bhd, Affin Bank Bhd, RHB Bank Bhd and AmBank Bhd.
This is its second fund-raising exercise with Cagamas in the last three years. The last exercise was done in 2009 amounting to 1.0 billion. In a statement, Dato' Ahmad Zaini Othman, Chief Executive Officer of MBSB said that, "The additional facility of RM1.0 billion will be used to support MBSB's business growth which has been very encouraging and we believe that this was the result of the transformation programme that MBSB had embarked on almost three years ago".
MBSB shall utilize the funds to further grow its retail assets, Personal Financing-i and Home Mortgage. The PF-i product has received increasing response from the government servants since MBSB re-entered the market early 2009. This can be attributed to attractive financing packages being offered with the bundling of takaful and will writing plans. The company has also witnessed positive progress as it began making inroads into the high net worth segment for home mortgage via its Mortgage Ultimate program. With expanded branch network in the last one year, from 36 branches and Representative Offices to the present number of 44, MBSB anticipates that it shall also remain on track to achieve its business plan targets.
MBSB believes that with this securitization exercise, the company is able to strengthen its funding programme, matching the tenure of its assets to liabilities. In a strategy to increase its market share for both Home Mortgage and Personal Financing-i, MBSB shall continue its efforts to intensify product development and constantly develop new marketing campaigns.
MBSB has reported an increase of 142% in pre-tax profit for the first nine months ended 30 September 2011 amounting to RM327.1 million, compared to the same corresponding period in 2010. The strong earnings posted was mainly due to the increase in retail assets with Personal Financing-i segment growing by about 98% in terms of gross loans.
Moving forward, Ahmad Zaini reiterated that the initiatives adopted by MBSB, will continue to focus on improvement on its asset quality, effectiveness and efficiency of operational processes, human capital development and strengthening of its risk management framework.
If you have any further quiries or require more information, please contact:
Azlina Mohd Rashad
Head, Coporate Planning & Communication Division
Malaysia Building Society Berhad
Tel: 03- 2096 3003/012-3852240
Fax: 03-2096 4268
E-mail: azlinarashad@mbsb.com.my
