MBSB AMONG TOP ACTIVE COUNTERS

KUALA LUMPUR, Nov 27 (Bernama) -- Financial provider MBSB Bhd has emerged as one of the top active counters on Bursa Malaysia after a strong nine-month financial year 2024 (9M FY2024) net profit, thanks to robust non-interest income (NOII).

At 9.45 am, the counter bagged 1.5 sen to 74 sen with 21.97 million shares traded.

It also delivered unexpected strength in fair value through other comprehensive income (FVOCI) gains in the third quarter (3Q FY2024), Kenanga Investment Bank Bhd said in a note today.

“A readthrough of the results indicates significant efforts to reshape its financing and deposit portfolios for more stable net interest margins (NIMs) in the future. We await further updates from the group for further assessment during a briefing,” it noted.

It said MBSB’s 9M FY2024 net profit of RM255.3 million came in at 89 per cent of Kenanga Investment's full-year forecast and 88 per cent of consensus full-year estimates.

The positive deviation was due to stronger-than-expected performance in investments, namely from its debt instrument holdings/FVOCI books.

Quarter-on-quarter, 3Q FY2024 net income grew by 123 per cent due to 55 per cent lower impairments, which was lumpier in 2Q FY2024.

“Although net Islamic income declined by 2.0 per cent following a slightly lower financing base, NOII made up for it with a 22 per cent improvement following a turnaround in investment income,” it said.

Kenanga Investment has therefore raised its FY2024 and FY2025 earnings forecasts by 23 per cent and 7.0 per cent respectively to pen in better NOII performance.

It also maintains an underperform on MBSB with a slightly higher price-to-book value target price of 60  sen from 59 sen previously.

-- BERNAMA