Malaysia Building Society : 1Q23 presentation slides

1Q23 ANALYST BRIEFING

Datuk Nor Azam M. Taib

GCEO, MBSB

26 May 2023

1

AGENDA

1Q23 KEY HIGHLIGHTS

• Datuk Nor Azam M. Taib (GCEO)

1Q23 FINANCIAL PERFORMANCE

• Ramanathan Rajoo (CFO)

MOVING FORWARD

• Datuk Nor Azam M Taib (GCEO)

2

1Q23 FINANCIAL PERFORMANCE

Profitability

Financing

Asset Quality

Capital &

Liquidity

• Registered a profit before tax ("PBT") of RM84 mil during the quarter, lower than the previous quarter of RM309 mil due to net impairment reversal of RM188 mil in 4Q22.
• Net profit margin at 2.0% in 1Q23 compared to 2.9% in the previous 4Q22 due to growth coming from lower margin business and higher funding cost.
• Gross loans and financing increased by 1.6% YTD to RM39.2 bil from RM38.6 bil (Dec 2022) contributed by consumer (0.4%) and corporate banking (4.6%) segments.
• Gross impaired ratio (GIR) rose slightly to 6.98% from 6.76% in 4Q22. However, GIR is lower than peak in 3Q23 of 7.41% due to our recovery efforts.
• MBSB declared and paid an 8.5 sen dividends in April 2023.
• Capital and liquidity position remained stable with CET1/Tier 1 Capital at 19.50% and Total Capital ratio at 23.77%.

3

AGENDA

1Q23 KEY HIGHLIGHTS

• Datuk Nor Azam M. Taib (GCEO)

1Q23 FINANCIAL PERFORMANCE

• Ramanathan Rajoo (CFO)

MOVING FORWARD

• Datuk Nor Azam M Taib (GCEO)

4

1Q 2023 FINANCIAL SNAPSHOT

Income

Expenses

4Q22 1Q23

328 268

1Q2022: 396

1. (127)

1Q2022: (150)

Var	Significant improvement in Profit after Taxation

1. Total income reduced by RM60mil QoQ mainly due to margin compression following 4 times OPR hike in year 2022.

80	Lower expenses recorded mainly due to reversal of provisions no longer required.

Profitability

(RM'mil)

Profit before provision (PBT before impairment) Impairment

Profit after taxation

121	141
	1Q2022: 238
188	(57)
	1Q2022: 158
201	74
	1Q2022: 58

20

1. Higher impairment as a result of deterioration of asset quality in !Q23 as compared to a writeback in 4Q22 (following ECL model refinement, including debt sales recovery collected in Dec-22)

(127)	Lower PAT recorded in 1Q23 in line with lower total income and higher impairment.

Assets & Liabilities

ROE (Post tax)

ROA (Post tax)

Gross Financing/Loans

3.39%

2022: 5.22%

0.54%

2022: 0.87%

39.2

2022: 38.6

1.83 Lower ROE in 1Q23 compared to 4Q22 due to lower profit for the quarter arising from increase in OPR.

0.33 Decrease in ROA% contributed by margin compression following 4 OPR hike in FY2022.

0.6	Expansion of portfolio across all business segments.

(RM'bil)

Capital & Liquidity

Customer Deposits

CET1

LCR

37.9	1.4	Growth in deposit in tandem with asset growth. CASA grew from RM2.3b to RM2.7b.
2022: 36.5
19.50%	(2.34)	Capital ratio decline to below 20% due to dividend payment and RWA growth.
2022: 21.84%
145.42%	(30.78)	LCR well above regulatory minimum requirement.
2022: 176.20%		5