MBSB posts 35% growth in 1H25 net profit to RM180mil

KUALA LUMPUR: MBSB Bhd reported a 35.3% rise in net profit to RM180.2mil for the first half ended June 30, 2025, compared with RM133.2mil a year earlier.

Revenue, however, slipped slightly to RM1.8bil from RM1.85bil, while earnings per share increased to 2.19 sen from 1.62 sen.

MBSB said the improved performance was driven by higher non-funded income (NFI) and lower impairment provisions. The NFI growth came mainly from stronger contributions in investment income, government scheme funds and corporate advisory fees.

On the funding front, the bank’s deposit franchise continued to strengthen, with current and savings account (CASA) balances rising 31% to RM4.6bil in June 2025 from RM3.5bil a year earlier, supported by growth in the commercial and wholesale banking segments.

MBSB said its asset quality also improved, with the gross Impaired financing ratio (GIFR) easing to 5.6% from 7.0% a year earlier. This reflects disciplined underwriting, effective recovery initiatives, and a well-balanced risk profile across businesses.

As at June 2025, the group maintained strong capital and liquidity buffers, with a CET1/Tier 1 capital ratio of 19.8% and a total capital ratio of 22.4%. Its liquidity coverage ratio stood at 156%, well above regulatory requirements.

The Board of Directors declared an interim dividend of 2.0 sen per share, amounting to a payout of RM164mil, representing 91.2% of the group’s profit after tax for the period.

“Our first-half performance demonstrates the resilience of our earnings model and the discipline of our execution.

“Looking ahead, milestones such as the nationwide roll-out of Auto Financing and the launch of the ‘Global Easy Transfer’ powered by Wise, feature on our M Journey app will expand our reach and strengthen our franchise. These initiatives will further accelerate the momentum of FLIGHT26,” group chief executive officer Rafe Haneef said.