Kuala Lumpur, 26 August 2025 – MBSB Bhd posted a significant 74.3% increase in net profit for the second quarter ended 30 June 2025 (2QFY2025), reaching RM95.56 million, up from RM54.83 million in the same period last year.

Key Drivers of the Profit Surge:

The dramatic improvement was mainly driven by a 41.5% reduction in expected credit losses and other impairments, which fell to RM57.59 million from RM98.51 million in 2QFY2024.
Operating expenses also decreased by 3.6% year-on-year, totalling RM233.1 million, though net income from core operations saw a slight 2.6% dip to RM424.5 million.
Quarterly revenue slid 2.85% to RM933.43 million, compared to RM960.85 million in the prior-year quarter.

Half-Year Performance:

For the first half of FY2025 (1H FY2025), MBSB recorded net profit of RM180.24 million, marking a 35.3% increase from RM133.17 million in the previous year. Revenue for the same period declined marginally to RM1.8 billion, down from RM1.85 billion.

Dividend Payout:

MBSB declared an interim dividend of 2 sen per share, totalling approximately RM164 million, which is set to be paid on 23 September 2025.

Strategic Outlook – “FLIGHT26” Transformation Roadmap:

MBSB reaffirmed its commitment to its three-year strategic roadmap, FLIGHT26, which aims to improve operational efficiency, grow non-funded income, and strengthen its funding structure. Noteworthy initiatives include:

Nationwide launch of Auto Financing.
Introduction of “Global Easy Transfer” (powered by Wise) via the M Journey app.
The group is also targeting a 20% CASA (current and savings account) ratio and RM50 billion in total financing by 2026.

Market Reaction:

Following the earnings release, MBSB’s share price fell 0.72%, or half a sen, closing at 68.5 sen, valuing the company at around RM5.59 billion.

Summary Table

Key Metric	2QFY2025	2QFY2024	% Change / Notes
Net Profit	RM95.56 million	RM54.83 million	+74.3%
Impairments (Expected Credit Losses)	RM57.59 million	RM98.51 million	–41.5%
Operating Expenses	RM233.1 million	–	–3.6%
Net Income	RM424.5 million	–	–2.6%
Revenue	RM933.43 million	RM960.85 million	–2.85%
1H FY2025 Net Profit	RM180.24 million	RM133.17 million	+35.3%
Interim Dividend	2 sen/share (~RM164M)	–	Payable 23 Sep 2025
Growth Initiatives	FLIGHT26 roadmap	–	Includes Auto Financing & Global Easy Transfer
Stock Price Post-Announcement	RM0.685	–	–0.72% reaction

Why This Matters

Asset Quality Improvement: The substantial drop in impairments indicates healthier loan performance and effective risk management.
Earnings Momentum: Despite softer revenue, strong bottom-line growth highlights resilience and operational discipline.
Investor Confidence: A healthy dividend payout—approximately 91% of interim net profit—boosts shareholder value and trust.
Digital Push & Funding Strategy: FLIGHT26 strategies targeting CASA growth and financing expansion show MBSB’s readiness to adapt and scale.

Author

Abigail Cheong

I am Abigail, a journalist at The Ledger Asia, covering business and finance with a focus on the Malaysian Stock Market and key economic developments across Asia. Known for clear, accessible reporting, I deliver insights that help readers understand market trends, corporate movements, and regional news shaping the Asian economy.