Kuala Lumpur, 17 September 2025 — MBSB Bhd, formerly known as Malaysia Building Society Bhd, is positioning itself for a stronger financing performance in the second half of its current financial year ending December 2025, after a subdued first half. Analysts at AmInvestment Bank believe that although growth in lending was weak in the personal, auto, and corporate segments during the first half, a recovery is under way, led by rising corporate disbursements and a shift in MBSB’s strategy toward higher-quality financing.
In the first six months of 2025, financing for MBSB declined by approximately 1.7% year-on-year, weighed down by low activity in its personal, automobile, and corporate financing sectors. However, AmInvestment’s report suggests that the second half (2H25) should see a turnaround. One major catalyst is a wave of corporate financing deals recently inked: RM1.3 billion for Cypark Resources to refinance its renewable energy assets; RM1.2 billion extended to DayOne Data Centers for its data centre operations; and RM180 million committed toward halal aquaculture expansion by Mag Holdings.
While this shift toward corporate clients and higher-quality projects is expected to improve the resilience of MBSB’s financing book, it comes with trade-offs. Analysts warn that yields on these better-quality loans may be lower, which could put pressure on asset yields in the near term. At the same time, margin erosion remains a risk, particularly in a low interest-rate environment or if funding costs increase.
Non-fund-based income emerges as another area of opportunity in MBSB’s outlook. AmInvestment highlights potential improvement in investment banking and transaction banking fees, suggesting that revenue from non-lending services could help buffer some of the pressure on margins. Another positive sign is that MBSB’s funding profile is improving; a higher ratio of current account and savings accounts (CASA) could help reduce the cost of funds over time.
MBSB’s gradual move away from heavy exposure to the real-estate and construction sectors reflects a deliberate risk-management strategy. Congested sectors like real estate carry higher exposure to market volatility, regulatory changes, and economic cycles. By contrast, financing renewable energy, data infrastructure, and halal food production offers more stable growth prospects, especially given government support and global trends.
Looking forward, much will depend on how swiftly corporate disbursements build up, how competitive the yields on new financings are, and how well MBSB manages its funding costs. If its plan succeeds, the second half of the year could mark a meaningful rebound in its financing growth, even if overall profitability will remain tested by margin pressures.
