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Others (Amended Announcement)

BackAug 03, 2011
Date Announced
:
03/08/2011  



Type
:
Announcement
Subject
:
OTHERS

Description
:
Economic Profit and Loss Statement for the period ended 30 June 2011

Announcement Details/Table Section :

Malaysia Building Society Berhad (“MBSB” or “the Company”) would like to announce its Economic Profit and Loss statement for the period ended 30 June 2011.

ECONOMIC PROFIT AND LOSS STATEMENT FOR THE PERIOD ENDED 30 JUNE 2011

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
2nd Quarter 2011=1.260

1st Quarter 2011=1.411
4th Quarter 2010=1.414

(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 30 June 2011=3.870%
At 31 March 2011=4.101%
At 31 December 2010=4.000%

(iv) The market risk premium is assumed at 8.5%, which represents the market return in excess of the return earned on risk free asset.

TABLE 1
30 June 2011 6 months (Unaudited) RM’000
31 Dec 2010 12 months (Audited) RM’000
Group profit after taxation
146,527
146,025
Less: Cost of capital employed
(50,153)
(53,000)
Economic profit
96,374
93,025

The amendments are on Table 1. The first paragraph of the 2nd column of the table should be read as 30 June 2011, 6 months (unaudited).