MBSB ...Nov09

MBSB plans to expand its corporate financing portfolio next year as the country’s economy returns to growth.
Consumer loans grew significantly this year. Next year, MBSB planned to expand its corporate portfolio, primarily in the property segment by offering term and bridging loans. Retail financing comprised about 70% of its total assets of RM8.1bil as at end-September.

Personal financing, which was mostly distributed to civil servants, was expected to reach RM1bil by year-end, a significant jump from February’s outstanding receivables of about RM300mil. Its mortgage portfolio was about RM5bil currently.

Next year, MBSB planned to build another RM700mil to RM800mil in new receivables within the corporate segment. Contract financing would be introduced for companies with secured government related projects.

The company has achieved its target of nearly RM2bil worth of new receivables this year. Next year’s target would be “bigger” as it had aggressive plans to grow a well-diversified portfolio.

It is raising RM500 million following the securitisation of mortgages for business activities. Its total assets had grown 11.3% to RM8.1 billion as at end-September 2009, from December 2008, as net loans and financing rose 12.8% to RM7.7 billion. The RM500 million is the second tranche of its RM1 billion with recourse securitisation of mortgages and it will be signed with Cagamas Bhd.

MBSB’s second tranche of RM500mil would be used to boost liquidity to expand its loans portfolio.

For the third quarter ended Sept 30, the company’s net profit surged to RM52.7mil compared with RM7.9mil a year ago while revenue jumped to RM162.4mil from RM93.5mil. The improvement was attributed to Islamic banking operations, especially the rapid growth in personal financing.