4Q21 ANALYST BRIEFING
24 FEBRUARY 2022
By Datuk Nor Azam M Taib
Acting Chief Executive Officer
AGENDA
4Q21 FINANCIAL PERFORMANCE
MOVING
FORWARD
2
4Q21 FINANCIAL PERFORMANCE
Profitability
Financing
Asset Quality
Capital &
Liquidity
4Q21: Recorded Profit Before Tax ("PBT") of RM164.4 mil (3Q21: Loss Before Tax of RM94.3 mil). The profit is mainly due to writeback on provision made on financing due to improvement in staging of customers.
Year 2021: Recorded PBT of RM714.1 mil (2020: PBT of RM427.6 mil). The higher profit is mainly due to lower modification loss and provision made on loans, financing and advances due to improvement in staging of customers during the year.
Gross loans, financing and advances remain at RM36.2 bil as at 31 December 2021 and 30 September 2021. Year-on-year growth is 1.27% or RM452.4 mil from RM35.7 bil predominantly in the retail segment.
Gross impaired loans and financing ratio improved to 4.60% from 5.58% recorded as at 30 September 2021. Year-on-year ratio improved from 5.30% as at 31 December 2020.
Total capital ratio remains strong at 25.98% (30 September 2021: 25.58%) and provide plenty of room for future growth. On liquidity, the Liquidity Coverage Ratio stands at a healthy 235%.
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GROUP KEY FINANCIAL HIGHLIGHTS
Net Income
1,286.4m 1,342.5m
448.1m
243.5m
4Q20 | 4Q21 | 2020 | 2021 |
Net income (before impairment) in 2021 improved mainly due to lower modification loss despite a decrease in the overall net profit margin by 5 bps and non funded income amounting to RM125.0 mil
Operating Expenses
437.9m | 542.4m | ||
187.6m | |||
111.0m | |||
4Q20 | 4Q21 | 2020 | 2021 |
Higher OPEX in 2021 with the significant investments in technology and HR to improve operational efficiency and enable new business capabilities.
Profit Before Tax
714.1m | |||
427.6m | |||
206.2m | 164.4m | ||
4Q20 | 4Q21 | 2020 | 2021 |
Improved PBT in 2021 mainly due to lower impairment and lower modification loss.
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GROUP KEY FINANCIAL HIGHLIGHTS (CONT'D)
Net Profit Margin
3.29%3.24%
20202021
Net profit margin regressed to 3.24% mainly due to lower average financing yields.
Cost to Income Ratio
32.8%
24.5%
20202021
Higher cost to income ratio due to the increase in opex from the investments in technology and HR.
Net Return on Equity
5.00%
3.08%
20202021
Higher net return on equity as a result of higher profit after tax.
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MBSB - Malaysia Building Society Bhd published this content on 24 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2022 11:12:28 UTC.