MBSB to focus on corporate segment

PETALING JAYA: Malaysia Building Society Bhd (MBSB) is putting extra focus on its corporate business next year and is eyeing about 20 per cent growth from the segment.

Speaking to reporters after the extraordinary general meeting today, Chief Executive Officer Datuk Ahmad Zaini Othman said MBSB is also targeting more income from corporate business and fee-based services.

He said the diversification from retail towards corporate business, government contracts and public finance programmes was initiated in 2010.

"We're also improving the way we do mortgage programmes from low-end to medium- and high-end. Not only are we expecting revenue growth but also better quality of growth with ample security and better debt collection, managing NPL (non-performing loan) and lowering cost of operation," he added. 

Ahmad Zaini said to achieve this, MBSB is putting more resources into its corporate business, including by enhancing the team with a bigger budget and focused KPIs, establishing the right strategy for market penetration and strengthening its evaluation team. 

"However, while scaling down personal financing, we're still doing it and continue to grow this segment. It's lucrative and low-risk," he added. 

Currently about 75 per cent of MBSB's revenue comes from the retail segment and 25 per cent from the corporate segment. 

"Realistically we target to achieve 60 per cent retail and 40 per cent corporate next year, and 55 per cent retail and 45 per cent corporate the year after. It's a balanced portfolio," he said.

He added MBSB's competitive edge is in its project management team and its flexibility and agility to make fast decisions. 

Ahmad Zaini added MBSB recently approved RM4.0 billion of loans which are expected to be disbursed next year