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BackJan 31, 2013
Type Announcement
Subject OTHERS
Description Economic Profit and Loss Statement for the year ended 31 December 2012

Malaysia Building Society Berhad (“MBSB” or “the Company”) would like to announce its Economic Profit and Loss Statement for the year ended 31 December 2012
ECONOMIC PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2012

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 2013=1.510

2nd Quarter 2012=1.510
4th Quarter 2011=1.490

(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 2012=3.490%
At 30 June 2012=3.480%
At 31 December 2011=3.640%

(iv) The market risk premium is assumed at 7.77%, which represents the market return in excess of the return earned on risk free asset.


TABLE 1
31 December 2012 12 months (Unaudited) RM’000
31 December 2011 12 months (Audited) RM’000
Group profit after taxation
446,651
325,432
Less: Cost of capital employed
(199,935)
(117,126)
Economic profit
246,716
208,306

This announcement is dated on 31 January 2013.

 


Announcement Info

Company Name MALAYSIA BUILDING SOCIETY BERHAD  
Stock Name MBSB    
Date Announced 31 Jan 2013  
Category General Announcement
Reference No MB-130131-62502