MBSB is expected to become a fully mature Islamic financial institution by 2025

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KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) presented its short and long term business plans to become a fully mature Islamic financial institution by 2025, it said in its annual report and corporate governance report 2020 .

The company said that in the short term, its 2021 business plan (BP2021) aims to focus on navigating the pandemic by preserving stakeholder trust, maximizing customer reach through digital capabilities and technological improvements, and expanding existing services.

As part of its first key strategy for 2021, Preserve: maintain stakeholder confidence, it aims to reduce the non-performing financing rate by 0.50 basis points, a cost / income ratio of no more than 40% and a 100% achievement towards the net stable funding ratio (NSFR) requirement.

MBSB’s second key strategy, Maximizing Customer Reach or Efficiency, sets goals to grow its customer base by 400,000 this year by optimizing digital capabilities and increasing online channel usage by 30% .

The initiatives set out in its third key strategy, Explore: Extending Existing Products, aim to enable partnerships to position MBSB Bank as a leading financial provider for material handling equipment and green energy financing for solar panels on the roofs.

For these initiatives, the company aims to increase asset growth by 20%, MBSB said in the report that was submitted today to Bursa Malaysia.

During its Journey 25 (J25), MBBS said it is setting plans and activities through FY 2025 (FY2025) with the goal of being a fully mature Islamic financial institution by 2025.

“We will implement the J25 plan using the ‘integrated thinking’ approach which is aligned with MBSB’s adoption of an integrated reporting framework.

“Under J25, we intend to strengthen (our position) by entering new trade flows, new frontiers and focusing more on our trade finance offerings,” he said.

For operations, the company aims to maintain the current level of cost-revenue ratio by managing costs in a regulated manner and improving processes that lead to efficiency.

During fiscal year 2020, the company obtained an external rating of A2; return on equity (ROE) of 3.1%; enhanced digital capabilities such as the introduction of a virtual branch, an electronic wallet and a mobile application; and a mix of 26:74 corporate and retail portfolio.

However, for fiscal 2025, the company is targeting an external rating of AA2, a higher ROE, and a corporate and retail portfolio of 40:60. -Bernama


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