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Economic Profit and Loss Statement for 1st Quarter 2009

BackMay 14, 2009
General Announcement
Reference No MB-090514-61212

 

Company Name
:
MALAYSIA BUILDING SOCIETY BERHAD  
Stock Name
:
MBSB  
Date Announced
:
14/05/2009  


Type
:
Announcement
Subject
:
Economic Profit and Loss Statement for 1st Quarter 2009

Contents
:
Malaysia Building Society Berhad (“MBSB” or “the Company”) would like to announce its Economic Profit and Loss Statement for 1st quarter 2009.


Announcement Details :

ECONOMIC PROFIT AND LOSS STATEMENT FOR THE 1ST QUARTER 2009

Economic profit or loss is an amount earned for a period by a business after deducting the operating expenses and a charge of opportunity cost of capital employed. The economic profit and loss statement set out in Table 1 is disclosed on a voluntary basis.

The assumptions used in computing the economic profit/loss are set out below:

(i) The cost of equity is calculated based on the following formula:

Cost of equity = (Beta x Market Risk Premium) + Risk Free Rate

(ii) The Beta used in the calculation is the 5 years adjusted Bloomberg Rate:


Quarterly Period Beta
1st Quarter 2009=1.383

4th Quarter 2008=1.373


(iii)The risk free rate is the rate of return of a 10-year Malaysian Government Securities at the closing of the reporting period:

Risk Free Rate
At 31 March 2009=3.850%

At 31 December 2008=3.170%

(iv) The market risk premium is assumed at 5.2%, which represents the market return in excess of the return earned on risk free asset.



TABLE 1
31 Mar 2009

(Unaudited) RM’000

Group profit after taxation
5,803
Adjustments
- Deferred tax assets
4,000
Adjusted Group profit after taxation
9,803
Less: Cost of capital employed
(13,781)
Economic loss
(3,978)