Thursday, March 31, 2011

MBSB to grow personal loans to 50pct of overall portfolio

KUALA LUMPUR: MALAYSIA BUILDING SOCIETY BHD [] (MBSB) targets to grow its personal loans to account for 50% of its overall loan portfolio from about 30% presently, its CEO Datuk Ahmad Zaini Othman.

He said on Thursday, March 31 this should translate to an additional RM5c billion in fresh disbursements.

Speaking to reporters after the company's AGM and EGM, he said the growth in the personal financing would be driven by aggressively seeking new customers.

At present, mortgages make up about 50% of the company's portfolio, whereas the balance comprised of corporate loans.

"Going forward, we hope to have mortgages comprise up to 35% of our portfolio while the balance would be corporate loans," he said.

He said shareholders had approved a proposed rights issue to raise about RM500 million, which should increase core capital ratio by 50%.

MBSB's target headline key performance indicators for 2011 were a 15% growth in group net return on equity and 25.0% group revenue growth.

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