MBSB Reports Strong Growth In Core Profit, Reflecting Accelerated Momentum

MEDIA RELEASE

For Immediate Release

MBSB REPORTS STRONG GROWTH IN CORE PROFIT, REFLECTING ACCELERATED MOMENTUM

Petaling Jaya, 27 February 2025 - MBSB Berhad reported a Profit Before Tax (PBT) of RM586.3 million for the financial year ended 2024. This is a 185.6% increase over the previous year's core PBT of RM205.3 million, which excluded the one-off gain from the FY2023 acquisition of MIDF. The strong performance underscores MBSB's growth momentum and operational resilience. Taking into account the one-off gain from the MIDF acquisition, MBSB's PBT of RM586.3 million represents a 4.6% year-on-year increase with Net Profit Margin increasing from 1.8% to 2.4%.

Group revenue rose by 31.4% to RM3.7 billion from RM2.8 billion in the previous financial year, driven by a 27.2% funded income growth and a 73.0% year-on-year increase in fee- based income attributed by MIDF's full year contribution. The Group's deposit franchise continued to strengthen, as reflected by a rise in the CASA ratio from 6.2% to 11.1%.

Disciplined cost management has kept the Cost-to-Income Ratio at 54.9% indicating an ongoing emphasis on maximising returns through prudent financial management. Asset quality showed marked progress, with Gross Impaired Financing Ratio improving from 7.3% in FY2023 to 5.3% in FY2024.

A higher Pre-Provision Operating Profit of RM745.1 million, compared to RM679.8 million in the previous year, further highlights the Group's strengthening fundamentals. MBSB maintained a strong capital position, recording a Common Equity Tier 1 (CET1)/Tier 1 Capital Ratio of 19.2% and Total Capital Ratio of 21.7%, providing sufficient resilience to capitalise on opportunities.

The Liquidity Coverage Ratio remains aligned with prudent balance sheet management, ensuring adequate buffers to meet both regulatory requirements and operational needs. Excluding the one-off gain, Return on Equity (ROE) significantly increased to 4.2% from 1.5% in the prior year, reinforcing MBSB's commitment to sustainable value creation.

Throughout 2024, MBSB continued its digital transformation and client-centric focus by upgrading its MJOURNEY platform and enabling SMEs to open current accounts online. On top of continuing to invest in technology and workforce, the Group also strengthened

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its wealth management offerings by introducing Prime Gold-i and the Term Investment Account with compelling profit rates. Leveraging the combined expertise of MBSB Bank and MIDF, the Group now offers a full suite of SME solutions, including blended financing, grants, and advisory services. All these initiatives reinforce MBSB's in-market position and underscore its commitment to sustainable growth in a competitive financial landscape.

Commenting on the financial results, Group Chief Executive Officer Rafe Haneef stated, "As we celebrate 75 years in the market, MBSB is committed to distinguishing itself by recognising opportunities in SME sectors, empowering customers, and fostering strategic collaborations. By leveraging deeper insights, strengthening industry partnerships, and focusing on high-value sectors, we are confident in our ability to deliver a compelling competitive edge across our target segments and markets."

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About MBSB Berhad

MBSB (formerly known as Malaysia Building Society Berhad) has been a vital contributor of the nation's financial services industry and economic development for more than 70 years. MBSB is also the financial holding company of MBSB Bank Berhad (MBSB Bank) and Malaysian Industrial Development Finance Berhad (MIDF). MBSB Bank is a progressive Islamic Bank that offers Shariah compliant banking facilities to retail, SME and corporate customers while MIDF is a financial services provider focusing on investment banking, development finance, and asset management.

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