KUALA LUMPUR, June 11 (Bernama) — Malaysia Building Society Bhd (MBSB) plans to undertake an internal restructuring.
It would result in its subsidiary, MBSB Bank Bhd, taking over the listing status of MBSB on the local bourse, said president and chief executive officer, Datuk Seri Ahmad Zaini Othman.
He also said the reorganisation step would be taken once MBSB converted its conventional assets worth about RM1 billion or between 10 per cent or 12 per cent of its total assets within two years.
“I think, under our business plan, Bank Negara Malaysia has given us about three years to collapse all the conventional assets, and we have about more than 85 per cent.
“We can’t do it immediately because there are certain issues of impairment that we have to bring down, and it is important in the transition to becoming an Islamic bank,” he told a press conference after MBSB’s 49th annual general meeting here today.
He said when the issues are all resolved, the bank would obtain a full syariah compliant certification or endorsement, and MBSB would eventually be the holding company.
“Impairment is a concern (for us).We look at it from the point of expected credit losses (ECL), we are monitoring this very carefully,” he added.
MBSB posted a lower net profit of RM83.83 million in the first quarter ended March 31, 2019 due to a higher ECL of RM153.02 million.
“We are going on a very aggressive campaign mode or rather aggressive approach towards collection with a new collection system, providing a bigger workforce towards recovery of early care accounts. Hopefully, this will manage our impairment moving forward, possibly over the next 12 to 14 months,” he added.
For FY19, the group will focus on expanding its products and services,including trade finance, wealth management and Internet and mobile banking, to cater for various segments of its customers and depositors.