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Economic Profit And Loss Statement For 4th Quarter 2009

BackMay 27, 2010
Date Announced
:
27/05/2010  




Type
:
Announcement
Subject
:
Economic Profit and Loss Statement for 4th Quarter 2009

Contents
:
Malaysia Building Society Berhad (“MBSB” or “the Company”) would like to announce its Economic Profit and Loss statement for 4th quarter 2009.

Announcement Details :

ECONOMIC PROFIT AND LOSS STATEMENT FOR THE 4TH 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
4th Quarter 2009=1.417

2nd Quarter 2009=1.441
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 December 2009=4.250%

At 30 June 2009=4.340%
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 December 2009

(Audited) RM’000

Group profit after taxation
57,203
Adjustments
- Deferred tax assets
16,000
Adjusted Group profit after taxation
73,203
Less: Cost of capital employed
(60,772)
Economic profit
12,431