MBSB Bank was formerly Malaysia Building Society was a corporation that applied and became a bank after merging with Asian Finance bank. It only has under 50 branches in Malaysia. As such, MBSB bank is the smallest bank in Malaysia, way smaller than Alliance Bank.
My personal opinion is the bank is at a good advantage to capitalize on technology to deliver its business. The bank can be positioned for this as banks nationwide are reducing branches, ATMs and cheques. The bank seems to be trying to focus on being an Internet first Islamic Bank.
 |
| Datuk Seri Ahmad outlining the roadmap and business |
The 2019 AGM was held at Nexus Bangsar South. Last year's door gift was a water tumbler. This year 2019's door gift was RM30 KFC voucher and meal pack. I had extra coupons as I was proxy to other shareholders. Datuk Seri Ahmad, MBSB president and CEO lead the presentation of the roadmap and company performance to the shareholders.
 |
| Meal Pack |
 |
| KFC Voucher RM 30, the others are proxy for people |
Fundamentally speaking, net profit seems to be swinging up and down. Their 2018 net profit was up 54% compared to 2017.
The latest quarterly net profit 2019 was disappointing but what I understand is they are doing a lot of capital expenditure on banking products (eg cash recycling machines, IT infrastructure, Banking apps , Product development, risk and compliance etc) to focus more on transnational banking instead of their traditional loan business. Very similar to all local banks, the major shareholder is EPF (Employees Provident Fund). Its lendings seem to be denominated with personal loans to government servants, this could be considered high risk as there was report about government servants serving 50% of their income to personal loans.
Technically speaking, the price is at its low at 0.9+. It has strong support at RM0.89-RM0.90. Nibbling on it at this range would be the best strategy for now.
